Stocks were mixed Monday, with tech leading the way higher, as interest rates slipped and the Turkish lira tumbled.
Futures on the Dow Jones Industrial Average were down 6 points, or essentially flat. S&P 500 futures were up 0.2%, while futures on the Nasdaq Composite were up 0.9%.
The 10-year Treasury yield fell to 1.68% after having touched 1.75% last week. Some blamed the tumble in the Turkish lira, which lost more than 10% of its value after Recep Erdoğan replaced the country’s central bank chief.
The surge in rates had hit tech stocks last week. With Treasury yields falling Monday, tech stocks like Tesla (TSLA), up 4.1%, and Zoom Video Communications (ZM), up 1.3%, moved higher. Tech stocks, which are mostly regarded as in the growth category, are especially sensitive to changes in long-term interest rates because their cash flows are projected farthest out not the future.
Here were some notable movers:
PepsiCo (PEP) shares rose almost 1% after Barclays upgraded the stock to Overweight from Equal-Weight.
Dollar General (DG) shares rose 0.6% after Evercore upgraded the stock to Outperform from In-Line.
Wendys (WEN) shares fell almost 1% after Argus downgraded the stock to Hold from Buy.
Five Below (FIVE) shares fell 0.6% after Evercore downgraded the stock to In-Line from Outperform.
Shares of Snap (SNAP) fell more than 1% after Bank of America Securities downgraded the stock to Neutral from Buy.
Write to Jacob Sonenshine at [email protected]
