>> Earning season was supposed to be strong enough to make investors forget about all the negatives out in the world. But that's turning out to be wishful thinking. The DOW tumbled nearly 600 points Tuesday at it worst, but closed above the lows of the day. The tech heavy NASDAQ was down sharply, as well.
Wall Street took a bite out of the so called, FAANG stocks, Facebook, Amazon, Apple, Netflix and Google parent, Alphabet. Its recently quarterly report showed costs are going up. And the search giant, and investors, weren't happy, wiping away all of the company's stock gain for the year. But there's more of Tuesday's sell-off than just tech, says Reuter's market correspondent, Lewis Krowskoff.
>> The yield on the tenure treasury hit 3% today, for the first time in more than four years. That's an important psychological barrier for a lot of investors. It obviously indicates rising borrowing costs which is one problem for stocks. In general, rising yields eats into dividend sensitive and dividend heavy sectors and stocks.
You're talking about utilities, telecoms, consumer stables, REIT's. Those are all sectors where stocks have high dividends and they could suffer if yields keep going up.>> And interest rates aren't the only thing going up Commodity prices are on the rise as well. Caterpillar sounded an alarm Tuesday, saying costs are going up faster than they predicted just three months ago.
The main culprit, steel, thanks to President Trump's tariffs. Investors know rising raw materials prices and higher barring costs are two things that can quickly eat away at corporate profits. And with the current earning season, expected to be the best in seven years. Investors are fearing that may be as good as it get.
And are now pushing the sell button