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


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. 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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I think we are already in socialism.

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

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

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

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

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

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

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

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

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


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

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.


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

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

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
2 replies to elendil3136's comment

You are fooling yourself if you think the Dems are helping.

May 14 2014 at 7:41 PM Report abuse +4 rate up rate down

Boy, you are quite the lemming. No, we weren't "paying off the debt". BJ Clinton ran up about four trillion in debt in his eight lame years, and it would have been way more if the Republicans hadn't forced him to cut his bloated liberal budget. That's when you take SS out of the general fund, as it was never meant to be in there. Liberals do that so you can't see the huge deficits they run up. Try not to embarass yourself here.


May 15 2014 at 4:53 AM Report abuse rate up rate down

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

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

Is Yellin yelling?

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