Dow opens higher Thursday morning as 10-year yield punches up to 1.76%

U.S. stock indexes kicked off solidly higher in opening trade Thursday after a whipsawing session in the previous day, which strategists say reflects investors’ uncertain outlook for the global economy amid a continuing trade and currency clash between China and the U.S. The Dow Jones Industrial Average DJIA, +1.43% 125 points, or 0.5%, to 26,125, the S&P 500 index SPX, +1.88% added 0.4% to 2,896, while the Nasdaq Composite Index COMP, +2.24% gained 0.7% to 7,917. The People’s Bank of China set the onshore yuan’s USDCNY, +0.0000% reference rate at 7.0039 against one U.S. dollar. Although that is the weakest point for the currency against the dollar since April 21, 2008, it is higher than the market had feared. The PBOC allows the yuan to fluctuate up to 2% higher or lower than that level. The momentary calm on the Sino-American trade front helped to push yields on government debt firmly higher, with the 10-year Treasury note TMUBMUSD10Y, +2.07% rising to 1.76% from 1.675% on Wednesday, representing its lowest rate since October of 2016 and reflecting a shift to assets perceived as havens as central banks were seen preparing for a damaging trade battle by cutting domestic rates. However, rates steadied on Thursday. On Wednesday, the Dow and S&P 500 saw their biggest turnarounds, erasing sharp opening losses, since Dec. 27, 2018, according to Dow Jones Market Data. In corporate news, shares of Kraft Heinz Co. KHC, -8.58% retreated after the snack company said it expects an impairment charge of $474 million for the second quarter. In economic news, initial jobless claims, a rough way to measure layoffs, dropped by 8,000 to a seasonally adjusted 209,000 in the seven days Aug. 3, the government said Thursday.

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