NEW YORK, NY / ACCESSWIRE / May 16, 2018 / U.S. markets slumped Tuesday, with the Dow Jones breaking an 8-day win streak, as interest rates surged to new highs. The Dow Jones Industrial Average declined 0.78 percent to close at 24,706.41, while the S&P 500 Index fell 0.68 percent to close at 2,711.45. The Nasdaq Composite Index dropped 0.81 percent to close at 7,351.63. The yield on the benchmark U.S. 10-year Treasury note touched 3.09 percent, the highest since 2011.
“In and of itself, 3% isn't significant, but it is psychologically important, and it comes at an uncertain time for the equity market,” said Stephen Wood, chief market strategist for Russell Investments, according to CNBC.
“We've been in a good economic environment, but one that's aging, and we've been seeing good earnings growth, although that cycle is also aging. Fundamentals aren't improving enough to justify valuations, and when one considers that with the backdrop of a Fed that's raising interest rates, the market will start re-rating its risk profile. You can expect that to last for a while, and for markets to be a lot more volatile as it goes on.”
RDI Initiates Coverage on:
Seadrill Limited
https://rdinvesting.com/news/?ticker=SDRL
Chesapeake Energy Corporation
https://rdinvesting.com/news/?ticker=CHK
Seadrill's stock jumped 13.75% Tuesday, to close the day at $0.36. The stock recorded a trading volume of 11,644,316 shares, which was above its three months average volume of 4,718,885 shares. In the last year, Seadrill’s shares have traded in a range of 0.15 - 0.68. The share price has gained 142.67% from its 52 week low. The company's shares are currently trading above their 200-day moving average. The stock's 50-day moving average of $0.26 is below its 200-day moving average of $0.27. Shares of Seadrill have gained roughly 63.64 percent in the past month and are up 56.52 percent year-to-date.
Access RDI's Seadrill Limited Research Report at:
https://rdinvesting.com/news/?ticker=SDRL
On Tuesday, shares of Chesapeake recorded a trading volume of 36,538,243 shares, which was above the three months average volume of 34,688,872 shares. The stock ended the day 3.06% higher at $3.71. The share price has fallen 36.8% from its 52-week high with a 52-week trading range of 2.53 - 5.87. The company's shares are currently trading above their 200-day moving average. The stock's 50-day moving average of $3.08 is below its 200-day moving average of $3.46. Shares of Chesapeake have gained roughly 18.15 percent in the past month and are down 6.31 percent year-to-date.
Access RDI's Chesapeake Energy Corporation Research Report at:
https://rdinvesting.com/news/?ticker=CHK
Our Actionable Research on Seadrill Limited (NYSE:SDRL) and Chesapeake Energy Corporation (NYSE:CHK) can be downloaded free of charge at Research Driven Investing.
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