U.S. stocks remained under pressure on Wednesday, as shareholders grappled with a mixed bag of earnings reports and bond yields that have been steadily climbing for the past six sessions.
The Dow industrials were on track for a sixth successive drop, the longest losing stretch since March 2017.
The Dow Jones Industrial Average was off 48 points, or 0.20%, to 23,975, as a rally by Boeing Co. following better-than-predictable earnings and an upbeat outlook wasn’t enough to lift the index into positive territory.
The S&P 500 was off by 2 points, or 0.09%, to 2,632, with nine of the 11 main sectors trading lower. Financials led the declines, down 0.9%.
The Nasdaq Composite Index slipped 3 points, or 0.05%, to 7,004.
Once again, the moves in the bond market were influencing trade in U.S. stocks on Wednesday, as Treasury yields continued to step higher. The yield on 10-year paper climbed 3 basis points to 3.1941%.
Higher yields can weigh on stocks, as bonds start to offer better returns than equities and push up borrowing costs for companies.
Earnings season remains in focus, with high-profile companies such as Twitter Inc. and Boeing Co. issuing reports ahead of the bell. Names such as Facebook Inc., Qualcomm Inc. and Visa Inc. are because of report once trading closes.
So far, more than 80% of the S&P 500 companies with reports out have beaten profit forecasts. However, those better-than-predictable results often haven’t been enough to give shares a lift.
Stocks in Asia were hit by the concerns over rising U.S. interest rates, with all major markets closing lower. It was the same story in Europe, where the Stoxx Europe 600 index slid 0.7%. (Source: MarketWatch)
Stock in Focus: Yamana Gold Inc (NYSE: AUY)
Yamana Gold Inc (NYSE: AUY) has grabbed attention from the analysts when it experienced a change of 0.00% in the current trading session to trade at $2.94. A total of 3,191,357 shares exchanged hands during the intra-day trade contrast with its average trading volume of 12.64M shares, while its relative volume stands at 0.53. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it. If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name. When stocks are *very* In Play one can see a RVOL of 5 and above. The higher the RVOL the more In Play the stock is.
Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.
In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.
Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.
Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.
Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Yamana Gold Inc (NYSE: AUY) stock is found to be 2.96% volatile for the week, while 3.55% volatility is recorded for the month.
The stock has a market cap of $2.79B and the number of outstanding shares has been calculated 949.26M. Based on a recent bid, its distance from 20 days simple moving average is 3.32%, and its distance from 50 days simple moving average is 2.42% while it has a distance of 4.31% from the 200 days simple moving average. The company’s distance from 52-week high price is -22.63% and the current price is 33.03% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 55.14 together with Average True Range (ATR 14) of 0.10.
Past 5 years growth of AUY observed at -18.60%, and for the next five years the analysts that follow this company is expecting its growth at 40.04%. The stock’s price to sales ratio for trailing twelve months is 1.55 and price to book ratio for the most recent quarter is 0.65, whereas price to cash per share for the most recent quarter are 17.22. Its quick ratio for the most recent quarter is 0.90. Analysts mean recommendation for the stock is 2.60. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
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