Market Snapshot: U.S. stock futures slip as 10-year bond yield moves higher

U.S. stock futures were slipping on Monday, as Treasury yields resumed a move higher and investors waited for another big week of earnings to get underway, with Halliburton Co. coming ahead of the open.

The market is also looking ahead to results later this week from major technology companies — Google parent Alphabet Inc., Facebook Inc. and Twitter Inc. — following losses for the sector in recent sessions.

Read more: Hopes are high for this earnings season—and that could prove dangerous

What are the main benchmarks doing?

Dow Jones Industrial Average futures YMM8, +0.00%  lost 33 points, or 0.2%, to 24,397, while S&P 500 index futures ESM8, +0.01%  fell 2.1 points to 2,669.75. Nasdaq-100 futures NQM8, +0.08%  eased 5.25 points to 6,671.25.

Stocks finished lower on Friday, pulled down by weakness for technology and consumer staples shares, though the major indexes still posted weekly gains.

DJIA, -0.82% The Dow Jones Industrial Average DJIA, -0.82% fell 201.95 points, or 0.8%, to 24,462.94, but still ended the week up 0.4%. Meanwhile, the S&P 500 SPX, -0.85% declined 0.9% to 2,670.14, but also rose 0.4% over the week. The Nasdaq Composite Index COMP, -1.27% dropped 1.3% to 7,146.13, but gained 0.5% for the week.

What’s driving markets?

Bond yields, which are reflecting a rise in inflation expectations, were on the march higher Monday, a continuation of gains logged last week. The 10-year Treasury note yield TMUBMUSD10Y, +0.76% TMUBMUSD10Y, +0.76% TMUBMUSD10Y, +0.76% TMUBMUSD10Y, +0.76% hovered around 2.984% on Monday, after jumping to 2.956% on Friday, the highest level since January 2014.

The rise in U.S. interest rates has come as traders increasingly start to price in four interest-rate hikes in 2018 from the Federal Reserve, rather than the three signaled by policy makers. On Friday, traders on the fed-fund futures market saw a 38% chance of four hikes this year, compared with 24.5% on April. 11.

Read: Stock-market investors are freaking out about the bond market—but should they be?

Easing geopolitical risks were in focus after North Korean leader Kim Jong Un said Saturday that his country would shut down its nuclear test site and suspend testing of long-range missiles. Still, U.S. President Trump is expected to insist on the dismantling of the country’s nuclear weapons before any sanctions are lifted.

What are strategists saying?

While strong earnings results should keep stocks underpinned in the short term, investors should not “drop their guard” given the charge higher for U.S. bond yields, said Konstantinos Anthis, head of research at ADS Securities.

“Even a small deterioration in sentiment could trigger a selloff for global equities as yields threaten the upside potential,” he said in a note to clients

What stocks are in focus?

Hasbro Inc. HAS, -1.40%  , Kimberly Clark Corp. KMB, -3.20%  and Halliburton Co. HAL, -0.10%  are scheduled to report results ahead of the market open on Monday.

Google parent Alphabet Inc. GOOGL, -1.11%  , TD Ameritrade Holding Corp. AMTD, +1.02%  and Whirlpool Corp. WHR, -1.74%  are all expected to report after Monday’s close.

Alphabet earnings: Google will offer a gander at its Uber investment

Shares of Akorn Inc. AKRX, +1.65%   slumped 31% in premarket after German healthcare group Fresenius SE FRE, -0.21%  said Sunday that it is terminating its $4.3 billion agreement to buy the generic-drug maker.

Facebook earnings: The numbers to watch for an advertiser revolt

Twitter earnings: Will product changes pay off as stock soars?

What are the economic data?

The Chicago Fed national activity index for March is scheduled for release at 8:30 a.m. Eastern Time. Preliminary readings of the manufacturing and services purchasing managers’ indexes for April from Markit are expected at 9:45 a.m. Eastern, followed by data on existing-home sales for March at 10 a.m. Eastern.

Check out: MarketWatch’s Economic Calendar.

What are other markets doing?

European stocks SXXP, -0.05% SXXP, -0.05% were struggling after a fresh batch of data. Asian markets US:CLK8 largely fell across the board, with continued losses for Taiwan Semiconductor Manufacturing Co. TSM, -1.47% 2330, -1.09%  .

Gold futures GCM8, -0.63% fell 0.6% to $1,330.40 an ounce, while the ICE U.S. Dollar Index DXY, +0.41% was jumped to a three-month high of 90.726 as bond yields climbed.

Oil prices CLM8, -0.42%  were down 0.5% at $68.07 a barrel.

Read: Why Trump is tweeting about OPEC—and what he can do about oil prices

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