US equities fade as yields and earnings angst weigh

<p>The S&amp;P 500 has notched three straight closing record highs and looked to be cruising on its way to a fourth earlier today. However the index has now given back most of its gains with the S&amp;P 500 up 15 points after rising as much as 35 points.</p><p>The index is now chewing into the session-opening gap.</p><p>The main catalyst for selling was a 2 basis point tail at a $61 billion 5-year Treasury auction. It was the largest tail since September 2022 and raises some concerns about US indebtedness ahead of the upcoming Treasury refunding announcement.</p><p> US yields are up 3-5 bps across the curve at the moment and the highs of the day.</p><p>We're also into earnings season and there is angst about that, including Tesla after the close today and American Airlines tomorrow pre-market.</p><p>Expectations for Tesla are:</p><ul><li>EPS of $0.74</li><li>Revenue of $23.17 Billion</li><li>Auto gross margins (ex-credits): 15.7%</li></ul><p>Comments on the order book will also be crucial. A leak today that Tesla will roll out a new $25,000 model in mid-2025 has been met with little market reaction and TSLA shares are down more than 20% so far this year.</p>

This article was written by Adam Button at www.forexlive.com.