S&P 500; US Indexes Fundamental Daily Forecast – Investors Waiting for Guidance from U.S.-China Negotiations

U.S. stock indexes are trading mixed shortly after the mid-session and a little ahead of the cash market close. Volume is light as investors digest the possible outcome of the trade negotiations between economic heavyweights the United States and China.

At 1832 GMT, the benchmark S&P 500 Index is trading 2713.76, down 6.37 or -0.23%. The blue chip Dow Jones Industrial Average is at 24717.15, up 3.17 or +0.01% and the tech-driven NASDAQ Composite is trading 7359.76, down 22.71 or -0.31%.

The broad-based S&P 500 Index is being pressured by a drop in the consumer staples sector, however, a 2 percent gain in Boeing and a 1.2 percent rise in Caterpillar is providing a boost for the Dow Jones Industrial Average.

The major stock indexes are in a position to post small losses for the week. At the opening, the Dow was down 0.5 percent for the week. The S&P 500 Index and NASDAQ Composite Index were down 0.3 percent.

Also pressuring stocks were rising interest rates. On Friday, the yield on the U.S. 10-year Treasury note hit a new multiyear high overnight, returning to a level not seen since 2011.

The 10-year yield briefly touched 3.128 percent, its highest level since July 8, 2011 when the note yielded as high as 3.184 percent. The 30-year bond yield also briefly hit a new high; it topped 3.2640 percent overnight, its highest level since October 3, 2014 when the 30-year yielded as high as 3.276 percent.

Early in the week, the benchmark 10-year U.S. Treasury note broke above 3.1 percent for the first time since 2011, while the two-year yield traded at its highest level in nearly 10 years. Strong U.S. economic data contributed to fears of the Federal Reserve tightening monetary policy faster than expected have pushed investors to sell Treasurys recently.

Although the majority of major companies have reported earnings for the first quarter, there was some corporate news today. Nordstrom shares fell nearly 10 percent after the Seattle-based retailer reported same store-sales that missed analyst expectations. The miss was enough to overshadow better-than-expected revenue and earnings for the first quarter.

Additionally, Applied Materials also dropped about 8 percent after the company issued guidance that disappointed investors.

Barring any unforeseen news, the major stock indexes are likely to finish mixed to lower for the session, locking up losses for the week.