U.S. stocks fall; 10-year Treasury yield drops below 4%

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U.S. stocks fall; 10-year Treasury yield drops below 4%

A trader works during the closing bell at the New York Stock Exchange (NYSE) on March 17, 2020 at Wall Street in New York City. 

Johannes Eisele | Afp | Getty Images

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Stocks retreatU.S. stocks

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as weaker-than-expected jobs and manufacturing data sparked concerns about a rapid economic slowdown. The

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lost nearly 500 points to close 1.21% lower, the

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shed 1.37% while the

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dropped 2.3%. The small-cap

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index dropped 3%. Market sentiment headed south after a Labor Department report showed initial jobless claims at its highest since August last year, while the

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contracted further in July.

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rose while

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fell.

Treasurys gainThe benchmark

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yield

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as investors digested weak job numbers and braced for a September rate cut by the U.S. Federal Reserve. The 10-year yield last traded at 3.981%, down 12.3 basis points, while the

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eased to 4.156%. Treasury yields and prices move in opposite directions.

Services boost Apple

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‘s quarterly results

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. Total revenue rose 5% to $85.78 billion, coming in slightly ahead of consensus, while earnings per share of $1.40 was higher than the Street’s estimate of $1.35. Looking ahead, Apple expects services to grow by about 14%. Apple CEO Tim Cook told CNBC’s Steve Kovach the company has increased spending on Apple Intelligence to get it ready by fall. Apple shares

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in extended trading.

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falls short

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shares slid as much as 7% in extended trading after its

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investors. While earnings per share of $1.26 came in well ahead of the $1.03 consensus, revenue for the quarter of $147.98 billion fell short of expectations due to tepid growth in the company’s core retail business.

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’s revenue forecast for the current quarter was also lower than what analysts had expected.

[PRO] Tech safe havensCNBC Pro screened the S&P 500 for

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amid the rotation away from their megacap counterparts, using yardsticks such as earnings per share and free operating cash flow growth of at least 10% in the past three years.

The bottom line

With most of Big Tech’s earnings out of the way, investors are likely to turn their attention to Friday’s job report for clues on how quickly the employment market is weakening and whether the U.S. might slip into a recession.

The Bureau of Labor Statistics’ nonfarm payrolls report for July, set to be released Friday at 8:30 a.m. ET,

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185,000 jobs were created in July, down from 206,000 in June. Job gains have averaged 203,000 a month so far this year as the unemployment rate edges higher.

Most analysts predict the fall in job creation to be modest and in line with the gentle downshift the Fed is looking to engineer.

“If the Fed was going to manufacture the soft landing, this is probably what it was going to look like,” said Mike Reynolds, vice president of investment strategy at Glenmede.

News on the jobs front hasn’t been encouraging. On Thursday, chipmaker

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as part of a $10 billion cost-cutting plan. The company also said that it will not pay its dividend in the fiscal fourth quarter of 2024 and that it will lower full-year capital expenditures by over 20%.

Online home goods retailer

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about the

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. “Our credit card data suggests that the category correction now mirrors the magnitude of the peak to trough decline the home furnishing space experienced during the great financial crisis,” Wayfair CEO Niraj Shah said in a news release.

— CNBC’s Jeff Cox, Jordan Novet and Gabrielle Fonrouge contributed to this report.

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#U.S #stocks #fall #10year #Treasury #yield #drops

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