Stock Market Update

[BRIEFING.COM] The major indices have rolled over in the afternoon trade, undercut by Treasury yields taking a noticeable turn higher in the wake of a relatively soft $16 billion 20-yr bond auction. 

The 10-yr note yield is up 11 basis points to 4.59%, and the 30-yr bond yield is up 13 basis points to 5.09%.

This bump in rates is creating concerns about increased competition for stocks, increased headwinds for growth, and increased angst about the reconciliation bill adding trillions to the budget deficit and necessitating increased Treasury supply to fund that deficit.

The communication services sector (+0.7%) is the lone sector in positive territory but has moved well off its session high (+2.5%). The other ten sectors are all down at least 1.1%, yet three -- real estate (-2.6%), utilities (-2.0%), and health care (-2.0%) -- are down 2.0% or more.