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Bond Market’s Warning

Photo of Gerelyn Terzo
By Gerelyn Terzo Published

Quick Read

  • Oil prices fell 6%, lifting stocks at the open, but a heavy earnings slate and an incoming Fed meeting are keeping conviction thin.

  • ASML and Nvidia reversed early gains after a Chinese state-backed firm began mass-producing domestic DUV lithography machines.

  • Wolfe Research warns the junk bond market looks worried, with HYG down 1% in July and on pace for three straight monthly declines.

  • The Motley Fool told its subscribers to buy Amazon in 2002, Netflix in 2004, and Nvidia in 2005. Stock Advisor still publishes two new stock picks every month — and over 23 years, has more than quadrupled the S&P 500. Click here to receive the next recommendation.

High-yield credit is starting to push back against the stock market’s resilience. The iShares iBoxx $ High Yield Corporate Bond ETF (NYSE Arca: HYG) has slipped nearly 1% in July and is headed for another down month, which would make it three declines in a row and five in the past six months. Wolfe Research says “the bond market looks worried,” with HYG’s March lows potentially back in play. Stocks are still rotating near highs, while junk debt is trading like investors are getting more selective about risk.

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All Updates from Live Coverage

| Gerelyn Terzo
Live

The S&P 500 and Nasdaq Composite have turned lower on the day, with both indexes down fractionally. Chip stocks have been pressuring the broader tech sector, with Advanced Micro Devices (Nasdaq: AMD) falling 7%, Teradyne (Nasdaq: TER) down 5.5% and Micron Tech (Nasdaq: MU) losing 4.5% on China’s competitive threat.

| Gerelyn Terzo
Live

The following technology companies are lined up to report their quarterly earnings this week. Here’s where there stocks are faring YTD:

Apple (Nasdaq: AAPL) up 24.59% for a market cap of $4.9 trillion.

Microsoft (Nasdaq: MSFT) down 18.7%

Amazon (Nasdaq: AMZN) up 1.04%

Meta (Nasdaq: META) down 8.3%

 

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Photo of Gerelyn Terzo
About the Author Gerelyn Terzo →

Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.

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