An avalanche of selling sent the Dow and S&P 500 careening 5% lower last week, one of the stock market's worst weeks since the 2008 financial crisis.
The culprit: Rapidly rising bond yields are alarming investors who got hooked on a decade of low interest rates.
So what's going on here? And why the focus on the bond market?
Modern financial markets function on the belief that U.S. government debt is the safest investment on the planet.
Knowing how much they can earn from "risk-free" Treasury bonds allows investors to determine the cost of stocks and other riskier assets. Treasuries serve as the benchmark for all other forms of credit, from junk bonds to mortgages.
"The 10-year Treasury sets the price for every asset in the world," said Brent Schutte, chief investment strategist at Northwestern Mutual.
That means the surge in the 10-year yield — from 2.4% earlier this year to about 2.8% now -- has increased the cost of money generally.
Best Safest Stocks To Watch Right Now: Quad Graphics, Inc(QUAD)
Advisors' Opinion:- [By ]
Cramer was bearish on Chesapeake Energy (CHK) , Adaptimmune Therapeutics (ADAP) , Icahn Enterprises (IEP) , Bristol-Myers Squibb (BMY) , Quad/Graphics (QUAD) , Spectra Energy Partners (SEP) and L Brands (LB) .
- [By ]
Quad/Graphics (QUAD) : "They have a 6% yield but they have no growth. I'm taking a pass."
Spectra Energy Partners (SEP) : "People are worried about natural gas transit. I'm worried about that 9% yield."
Best Safest Stocks To Watch Right Now: Golden Ocean Group Limited(GOGL)
Advisors' Opinion:- [By Max Byerly]
Get a free copy of the Zacks research report on Golden Ocean Group (GOGL)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
- [By Stephan Byrd]
Teekay Offshore Partners (NYSE: TOO) and Golden Ocean Group (NASDAQ:GOGL) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.
- [By Lisa Levin] Gainers Pacific Biosciences of California, Inc. (NASDAQ: PACB) rose 11.4 percent to $2.93 in pre-market trading. Check-Cap Ltd. (NASDAQ: CHEK) shares rose 6.3 percent to $4.76 in pre-market trading as the company announced the publication of CE Mark multicenter clinical study results on C-Scan® in Gut. Acacia Communications, Inc. (NASDAQ: ACIA) rose 6 percent to $ 35.20 in pre-market trading. Cellect Biotechnology Ltd. (NASDAQ: APOP) rose 6 percent to $7.60 in pre-market trading. Hexindai Inc. (NASDAQ: HX) rose 5.7 percent to $12.70 in pre-market trading. MoSys, Inc. (NASDAQ: MOSY) shares rose 5.3 percent to $2.07 in pre-market trading. Micron Technology, Inc. (NASDAQ: MU) rose 5 percent to $58.20 in pre-market trading after reporting a $10 billion buyback plan. Golden Ocean Group Limited (NASDAQ: GOGL) rose 4.1 percent to $8.63 in pre-market trading. MorphoSys AG (NASDAQ: MOR) rose 3.5 percent to $26.99 in pre-market trading. Cyren Ltd (NASDAQ: CYRN) shares rose 3.4 percent to $2.90 in pre-market trading. after reporting Q1 results. Box, Inc. (NYSE: BOX) rose 3.4 percent to $28.76 in pre-market trading. Kohl's Corporation (NYSE: KSS) shares rose 3.3 percent to $67.60 in the pre-market trading session after the company reported upbeat quarterly earnings. Micro Focus International plc (NYSE: MFGP) shares rose 3.1 percent to $18.40 in pre-market trading.
- [By Ethan Ryder]
Jane Street Group LLC raised its holdings in shares of Golden Ocean Group Ltd (NASDAQ:GOGL) by 99.4% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 224,567 shares of the shipping company’s stock after purchasing an additional 111,971 shares during the period. Jane Street Group LLC owned approximately 0.16% of Golden Ocean Group worth $1,785,000 at the end of the most recent quarter.
- [By Ethan Ryder]
Golden Ocean Group (NASDAQ: GOGL) and Kenon (NYSE:KEN) are both small-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
- [By Motley Fool Staff]
Golden Ocean Group (NASDAQ:GOGL) Q1 2018 Earnings Conference CallMay. 30, 2018 9:00 a.m. ET
Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:Operator
Best Safest Stocks To Watch Right Now: Aegion Corp(AEGN)
Advisors' Opinion:- [By Shane Hupp]
ValuEngine cut shares of Aegion (NASDAQ:AEGN) from a buy rating to a hold rating in a report issued on Friday morning.
A number of other brokerages also recently weighed in on AEGN. Stifel Nicolaus boosted their target price on Aegion from $26.00 to $28.00 and gave the stock a hold rating in a research note on Friday, May 25th. Zacks Investment Research downgraded Aegion from a hold rating to a sell rating in a research note on Tuesday, May 1st. Finally, BidaskClub upgraded Aegion from a hold rating to a buy rating in a research note on Monday, June 18th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and two have issued a buy rating to the company. The company presently has a consensus rating of Hold and an average target price of $27.50.
- [By Shane Hupp]
LSV Asset Management decreased its position in Aegion Corp (NASDAQ:AEGN) by 5.7% in the 1st quarter, HoldingsChannel reports. The fund owned 108,700 shares of the construction company’s stock after selling 6,600 shares during the period. LSV Asset Management’s holdings in Aegion were worth $2,490,000 as of its most recent filing with the Securities & Exchange Commission.
- [By Stephan Byrd]
Aegion (NASDAQ:AEGN) was upgraded by stock analysts at BidaskClub from a “hold” rating to a “buy” rating in a report issued on Wednesday.
- [By Joseph Griffin]
Get a free copy of the Zacks research report on Aegion (AEGN)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Best Safest Stocks To Watch Right Now: Alpine Total Dynamic Dividend Fund(AOD)
Advisors' Opinion:- [By Logan Wallace]
Oppenheimer & Co. Inc. lifted its stake in shares of Alpine Total Dynamic Div (NYSE:AOD) by 14.1% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 101,451 shares of the investment management company’s stock after acquiring an additional 12,551 shares during the period. Oppenheimer & Co. Inc. owned 0.09% of Alpine Total Dynamic Div worth $906,000 as of its most recent SEC filing.
