Core Concern for Stock Bulls Is If Yields Zap Earnings Miracle
- Rising Treasury rates put the Fed model gap at February levels
- Will no amount of earnings growth anchor a valuation case?
Pinebridge's Slim Says Treasury Yields to Remain Under Pressure
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For stock bulls, it’s simple. Could rising rates on Treasury bonds reduce or even eliminate the benefits of some of the fattest corporate profits ever reported?
U.S. earnings were a record in the first quarter -- $300 billion in the S&P 500, something that by itself made equities a lot less expensive. But factor in higher rates, and the advantage could quickly disappear. U.S. futures slipped Thursday as 10-year Treasury yields climbed to 3.10 percent.