Treasury yields surge pushes Wall Street lower

All three major US indexes fell for the first time in days with the broad S&P 500 losing 0.68 percent

All three major US indexes fell for the first time in days with the broad S&P 500 losing 0.68 percent

Core April retail sales - which excludes gasoline, automobiles, building materials and food services - rose at a brisker 0.4 percent monthly pace over March, as consumer spending is quickening its pace after a first-quarter slowdown. The Dow Jones Industrial Average closed at 24,706.41 for a loss of -193.00 points or -0.78%. Smaller rival Lowe's Companies Inc was down 1.0%.

The really ominous news? Treasuries were a key factor for the market Tuesday as investors watched 10-year Treasury yields climb to 3.08%. In other words, you can earn higher income on risk-free short-term money than you can on stocks. Yet we have to ask: If the Federal Reserve's policy of quantitative easing was good for stocks, shouldn't the reverse policy-aka "quantitative tightening"-be bad for them?"

"A combination of firm growth and higher interest rates is unnerving", said Anthony Chan, chief economist for Chase in NY.

READY TO SHOP: Some retailers got a boost from the retail latest retail sales data. Some Fed watchers have been cautioning that any lasting uptick in inflation or in economic growth might spur the Fed to pursue an additional rate increase before year's end.

The rise in bond yields pulled down shares in real estate investment trusts and other high-dividend-paying stocks.

Benchmark US crude oil reversed an early side, rising 35 cents to settle at $71.31 a barrel in NY.

United Nations chief welcomes North Korean plan to close nuclear site
Kim has already declared his nuclear weapons and missile program as finished and the nuclear testing site's mission as completed. Pyongyang has said it does not need nuclear weapons if the security of its regime is guaranteed.

Brent crude oil settled at $78.43 a barrel, up 20 cents, or 0.3 per cent, after reaching an intraday peak of $79.47 a barrel, up $1.24 and its highest since November 2014. The euro weakened to $1.1847 from $1.1944. Silver dropped 38 cents, or 2.3 percent, to $16.27 an ounce.

"U.S. oil prices have flip-flopped on a strong dollar", said Phil Flynn, analyst at Price Futures Group in Chicago.

The biggest drags on the sector were Kinross Gold Corp., which fell 2.5 per cent, and Barrick Gold Corp., which dropped 1.9 per cent.

The Russell 2000 is up 64.83 points, or 4.2 percent. Natural gas dipped a penny to $2.84 per 1,000 cubic feet.

MARKETS OVERSEAS: In Europe, Germany's DAX fell 0.1 percent after new data showed the country's economy slowed in the first quarter. France's CAC 40 inched up 0.2 percent. Ulta Beauty added 1.1 percent to $249.64. In Japan, the Topix index was off 0.2%. The Shanghai Composite index dropped 0.3 percent to 3,183.28 and shares in Southeast Asia were lower while Taiwan advanced.

The North Korean announcement sent South Korea's Kospi 0.2% lower. Hong Kong's Hang Seng dropped 1.2 percent.

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