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Stocks brutalized as rates rise

This morning, a selloff in European bonds created a wave of rising global bond rates. The yield on the US 10 year note rose to 2.291, surpassing its March high of 2.24. This in turn has led to selling in stocks, with the most intense selling on NASDAQ, which is now down nearly 1%. In other news, Verizon (VZ) announced this morning that it was buying AOL (AOL) for $4.4 billion. Analysts seem to like the match, but that hasn’t been enough to keep VZ out of the red on what is quickly becoming a rather grim day for stock owners.

At present, stocks are down. The S&P 500 is down 0.66%, the DJIA is down 0.74% and the Nasdaq is down 0.97%.

Here are your Tuesday morning market metrics. The industries doing well today include Food & Staples Retailing, Health Care Providers & Services and Electrical Equipment. The industries showing weakness today include Building Products, Real Estate Management & Development and Airlines.

The VIX is up 8.09% to 14.97 after closing yesterday at 13.85. The most active options this morning are PowerShares DB US Dollar Bullish ETF (UUP) with 50,278 May expiring $0.04 calls changing hands. The total put-call volume ratio is 1.04 (331,745/320,159). NYSE Adv/Dec 453/2,520. Nasdaq Adv/Dec 490/1,935. 

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can follow Julian’s daily hedged options trades and his unfolding market commentary via twitter: @JulianClose_MIC.

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.