Stocks Look to End Volatile Week Higher Despite Yield Drama

Stocks Look to End Volatile Week Higher Despite Yield Drama

All three major indexes are still pacing for a steep weekly drop, however A handful of earnings stragglers and minutes from July's Federal Reserve's meeting made their way across Wall Street this week, the latter of which showed support for an interest rate hike is growing. The real star of the show was Treasury yields, with long-term bonds surging globally and the the 30-year hitting its highest level since 2007. By Tuesday stocks suffered their lowest close in two weeks, which was only the start of volatile price action, as yields brushed off an attempt from the U.S. Treasury Department to ease bond pressure. The Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) are attempting to recover in Friday's session, though each index is still pacing for a more than 1% weekly loss. The Russell 2000 Index (RUT) fared no better, on track for its worst week since June 5 as growing U.S.-Iran tensions push crude prices higher.

A surge in Bitcoin (BTC) shares sent the broader crypto and digital currency sector into the spotlight this week. MicroStrategy (MSTR) started the week higher despite its Bitcoin sidestep, while Coinbase Global (COIN) enjoyed its Clarity Act surge. Fintech equities were also in focus, especially SoFi Technologies (SOFI) with a big bet out of Piper Sandler. Meanwhile, the buy now, pay later firm Klarna (KLAR) suffered a setback after sharing dismal guidance.

Earnings season continued on, with the likes of Deere (DE), BJ's Wholesale (BJ), and Estee Lauder (EL) enjoying a post-report pop. Walmart (WMT) didn't fare as well, however, suffering a steep slide after its outlook hike disappointed investors. We also combed through a handful of retail names before their turn in the earnings confessional. Put traders circled Ross Stores (ROST), Abercrombie & Fitch (ANF) remained near key support, while short interest remained high for Urban Outfitters (URBN).

Next week brings one of the busiest stretches of the summer, with a flood of economic data scheduled for release. Nvidia (NVDA) is also headlining a packed earnings docket, while investors will be parsing every word from the Fed Survey for hints on the pace of rate cuts. Plus, Schaeffer's Senior V.P. of Research Todd Salamone flags an important S&P 500 marker to watch in the coming weeks and Senior Quantitative Analyst Rocky White looks at a rare Cboe Market Volatility Index (VIX) signal that says now's the time to cash in. Also, don't forget to recap Moderna's (MRNA) record-breaking session.