Stocks were subject to profit taking during the session as traders pared back gains on commodity based shares. With recent pullbacks in oil, gold and other precious metals, investments in commodity producers were hit especially hard. As a result, the benchmark blue chip Dow Jones fell 40.11 points to 10,758.16 while the broader S&P 500 slipped 8.65 points to 1,256.37. Although commodity producers led the decline, General Motors Corp. led notables on the day as the carmaker announced a 50 percent reduction of its yearly dividend. Attempting to cut costs and narrow losses, GM has additionally announced plans to reduce the salaries of its chairman and senior management officials. The plan was announced one day following the appointment of a top aide to investor Kirk Kerkorian. GM shares fell 64 cents to $22.70.
Bonds remained inverted with 2-year yields hovering benchmark 10-year yields. With confidence still shaky in the near term, with higher rates expected, the short term note rose above at a 4.60 percent while the 10-year dipped 2 basis points to 4.56 percent. The face value, which moves inversely to yield, added 5/32 to 99 15/32.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.