After Market: An Interesting Warning Sign Pauses the Bull Run

The interest rate on the 10-year T-note hit its lowest level since October, which set off alarm bells among Wall Street pros

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Stock indexes retreated on Wednesday from the record highs set the day before, after investors got a worrisome signal about the economy: The interest rate on the 10-year Treasury note dropped to its lowest level since last October. For some market pros, that's a flashing yellow light, warning that an economic slowdown could be right around the corner.

The Dow Jones industrial average (^DJI) lost 101 points, about 0.6 percent, snapping a five session win streak. The Standard & Poor's 500 index (^GPSC) fell 9 points, about 0.5 percent, and the Nasdaq composite (^IXIC) dropped another 29 points, about 0.7 percent.

Retail stocks captured a lot of attention Wednesday.

Macy's (M) was little changed after its quarterly report. Earnings were slightly above expectations, but sales slightly below. The company also boosted its dividend by 25 percent. Kohl's (KSS) fell more than 3 percent on word the CEO is planning a management shake-up. Kohl's reports earnings on Thursday morning.

Sears (SHLD) fell 6 percent. It's considering the sale of a 51 percent stake in Sears Canada. J.C. Penney (JCP) lost 3 percent. And Fossil (FOSL), which sells fashion accessories, dropped 10 percent after cutting its earnings guidance.

On the plus side, Kate Spade (KATE) gained 8½ percent as sales jumped. Its stock has soared nearly 70 percent over the past year. And Zulily (ZU) rose 9 percent as the lock-up period expired, allowing insiders to sell stock. The selling wasn't as heavy as expected -– a sign of confidence in the online retailer.

But executives at video game maker Electronic Arts (EA) have been selling shares. The stock fell 2½ percent. Rival game maker Take-Two Interactive (TTWO) fell 8 percent. Its loss was worse than expected.

Biotechs were mostly higher, with Amgen (AMGN), Celgene (CELG) and Gilead (GILD) all up about 1 percent. But Enzymotec (ENZY) tumbled 32 percent as revenue fell short of expectations.

Elsewhere, Sony (SNE) fell 6½ percent. It expects a loss for the year as sales of electronics have disappointed. New York Times Co. (NYT) fell 4½ percent. It replaced executive editor Jill Abramson.

Whirlpool lost 4 percent. TheStreet.com says the stock broke below a key technical level. And LoJack (LOJN) jumped 19 percent after an arbitration panel dismissed claims in a dispute with a licensee.

What to Watch Thursday:
  • The Labor Department releases weekly jobless claims and its consumer price index for April at 8:30 a.m. Eastern time.
  • The Treasury Department releases international money flows data for March at 9 a.m.
  • The Federal Reserve releases industrial production for April at 9:15 a.m.
  • At 10 a.m., Freddie Mac reports weekly mortgage rates, the National Association of Home Builders releases its housing market index for May and the Federal Reserve Bank of Philadelphia releases its May survey of manufacturing conditions for the Mid-Atlantic region.
These major companies are scheduled to release quarterly financial statements.
  • Applied Materials (AMAT)
  • J.C. Penney (JCP)
  • Kohl's (KSS)
  • Nordstrom (JWN)
  • Walmart Stores (WMT)
-Produced by Drew Trachtenberg.


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24 Comments

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Neil

I think we are already in socialism.

May 14 2014 at 10:25 PM Report abuse -2 rate up rate down Reply
Iselin007

I said I knew Presidents Gerald Ford's real name and he was in my family tree:

Barnabas Wines m. Anna Eddy
.Prudence Wines m. John Goldsmith
|.John Goldsmith m. Mary Vail
| .Zacheus Goldsmith m. Deborah Corey
| .Mary Goldsmith m. PARKER WICKHAM (1727-1785), American Revolution Loyalist
| .Parnel Wickham m. James Reeve
| .Anna Reeve m. William Wickham
| .WILLIAM WICKHAM (1819-1881), Suffolk County, NY district attorney, m. Sarah Elizabeth Havens (same as 105 & 106, above & below)
.Barnabas Wines, Jr. m. Mary ------
.Barnabas Wines III m. Anna ------
|.Barnabas Wines IV m. Bethia Terrill
| .Anna Wines m. James Reeve
| .James Reeve m. Parnel Wickham

| .Anna Reeve m. William Wickham
| .WILLIAM WICKHAM (1819-1881), Suffolk County, NY district attorney, m. Sarah Elizabeth Havens (same as 105 & 106, above & below)
.Samuel Wines m. Abigail ------
.Ann Wines m. John Many Manney .Wines Manney m. Alida Vanderburgh
.John Manney m. Elizabeth Collins
.Elda V. Manney m. John Ayer
.George Manney Ayer m. Amy Gridley Butler
.Adele Augusta Ayer m. Levi Addison Gardner
.Dorothy Ayer Gardner m. Leslie Lynch King
.Leslie Lynch King, Jr. a.k.a. GERALD RUDOLPH FORD (1913- ), 38th U.S. president (re-named after step-father)

May 14 2014 at 8:50 PM Report abuse -3 rate up rate down Reply
Iselin007

My ancestor came here before this was the United States and the descendants were here when it was two countries during the Civil War.

May 14 2014 at 8:43 PM Report abuse -2 rate up rate down Reply
Iselin007

Thanks to the trade deals the economy is like musical chairs. When the musical bell on Wall street rings it leaves somebody standing on line for public assistance. Today IPO stands for Initial People Outsourced!

May 14 2014 at 8:06 PM Report abuse -1 rate up rate down Reply
betty.brock1

Hillary says:
Vote for me 'cause I'm your friend.
I'll try that Social-ism again.
I'll spend until were out of debt.
Then I'll spend some more, you bet.
I am just a spending fool.
Vote for me cause idiots rule.
My mind's sharp 'cause I work out.
What were we just talkin' about?
Oh yeah, the Benghazi scandal. I don't care.
It don't matter what happened over there.

May 14 2014 at 7:17 PM Report abuse +5 rate up rate down Reply
3 replies to betty.brock1's comment
Brad

Fix the price of gasoline and diesel fuel and the economy will be fine. As long as the crooks have us at there mercy, the economy will never fully recover!

May 14 2014 at 7:10 PM Report abuse +1 rate up rate down Reply
2 replies to Brad's comment
Neil

you should have bought some oil stocks !

May 14 2014 at 10:21 PM Report abuse +1 rate up rate down Reply
2 replies to Neil's comment
merstockgto

I bought CHV several years ago and with the price increase over the years and a very good dividend it pays good.

May 15 2014 at 1:09 AM Report abuse rate up rate down
marcagnos2

Yeah, like Goldman Sachs. That hurts us all, glad you're out for yourself.


MARC

May 15 2014 at 4:48 AM Report abuse rate up rate down
marcagnos2

You don't need to fix it, you need to stop trying to make it harder to drill and sell oil. Tell the M0R0N in the WH. He doesn't seem to get it, I doubt he ever will. So what we need to do now is vote out all the liberals in the Senate, and override his veto. Then IMPEACH him.


MARC

May 15 2014 at 4:47 AM Report abuse rate up rate down Reply
militiaman2013

Simple math no livable wages - no livable economy.

I knew when I seen Gold and Silver up pre-market that the shysters were gonna have a sell off. This live for today mentality and corruption is bad for everyone.

May 14 2014 at 6:59 PM Report abuse +6 rate up rate down Reply
1 reply to militiaman2013's comment
dopey.obamite

Wait....aren't you a smarter-than-everyone (yet somehow more pathetic) day trader?

Aren't you the same guy who claims to have spearheaded the anti UAW campaign and no vote at the VW plant?

The same guy who just visits his brokerage account to sell off enough to buy his wants and needs...yet also was bragging about getting "free" welfare obamacare?

I hope you have your therapist on speed dial.

May 14 2014 at 11:27 PM Report abuse +1 rate up rate down Reply
thefacts22

This up and down Market,is the result of obanomics,we are in an unsustainable path of debt and wrong policies.I will not be surprised if USA collapses....we simply can not continue feeding crony capitalism and welfare leeches.

May 14 2014 at 6:49 PM Report abuse +5 rate up rate down Reply
2 replies to thefacts22's comment
elendil3136

1. The Market goes up and down naturally. Always has.
2. We were paying down the National Debt nicely before some cowboy started two wars without a war tax to pay for them.
3. I will be.
4. Throwing the corporate crooks in jail and comfiscating everything they own will stop the first problem, bringing back half of the jobs outsourced to foreign countries will solve the second.

May 14 2014 at 7:20 PM Report abuse +1 rate up rate down Reply
3 replies to elendil3136's comment
Iselin007

This isn't capitalism it's more like crapitalism.

May 14 2014 at 8:15 PM Report abuse -3 rate up rate down Reply
jdykbpl45

Is Yellin yelling?

May 14 2014 at 5:31 PM Report abuse +4 rate up rate down Reply