December S&P 500 E-Mini futures (ESZ24) are down -0.41%, and December Nasdaq 100 E-Mini futures (NQZ24) are down -0.61% this morning as Treasury yields extended their rise amid cooling expectations of Federal Reserve rate cuts for the rest of the year, while investors geared up for the next round of corporate earnings.
In yesterday’s trading session, Wall Street’s major indexes closed mixed. Cigna Group (CI) slumped over -4% after Bloomberg reported that the company was reviving efforts to merge with its smaller rival Humana. Also, homebuilder stocks lost ground after the benchmark 10-year Treasury yield rose to a 2-1/2 month high, with Builders FirstSource (BLDR) sliding more than -5% to lead losers in the S&P 500 and DR Horton (DHI) falling over -4%. In addition, United Parcel Service (UPS) dropped more than -3% after Barclays downgraded the stock to Underweight from Equal Weight with a price target of $120. On the bullish side, Kenvue (KVUE) advanced more than +5% and was the top percentage gainer on the S&P 500 after the Wall Street Journal reported that activist investor Starboard Value had taken a sizeable stake in the company. Also, Boeing (BA) rose over +3% and was the top percentage gainer on the Dow after the company and the leaders of its striking machinists union reached a new tentative agreement that could end a strike lasting over a month.
