Dow snaps losing streak as energy stocks rack up gains By Investing.com

By Yasin Ebrahim

Investing.com — The Dow snapped a four-day losing streak Tuesday, as rising energy stocks helped the broader market overcome an ongoing march higher in Treasury yields following the Bank of Japan’s unexpected hawkish pivot.

The gained 0.3%, or 92 points, the was up 0.01%, and the   rose 0.1%.  

The Bank of Japan rattled investors overnight after announcing that it would allow 10-year Japanese government yields to rise as much as 50 basis points, or 0.5%. That was up from the previous 25 basis point cap, and signals the BoJ’s “first step toward tighter monetary policy by widening the target range for bond yield,” Commerzbank said in a note.

The surge in Japanese government bond yields pushed up yields on global bonds including Treasuries, keeping gains in rate-sensitive sectors like tech in check.

Rising energy stocks, however, helped steady the broader market higher as oil prices added to gains from a day earlier supported by a .

Halliburton Company (NYSE:), Schlumberger NV (NYSE:) and ConocoPhillips (NYSE:) were among the biggest sector gainers.

On the earnings front, meanwhile, General Mills (NYSE:) lifted its guidance and delivered better-than-expected . Its stock, however, slipped more than 5%.

Consumer stocks were the biggest drag on the broader market with Tesla (NASDAQ:) leading to the downside after Evercore ISI cut its price target on EV maker to $200 from $300 on concerns of further downside as the stock failed to hold above a key level of support.

Retailers including VF Corporation (NYSE:) and Ralph Lauren (NYSE:) were also under pressure as investors looked ahead to quarterly results from sportswear giant Nike (NYSE:) – due after the closing bell – that could offer further clues on the strength of the consumer.  

“[I]f they (Nike) signal that the worst is behind them regarding inventory/gross margin and China actually returns to growth (given what they’re lapping), we think that’s enough to move the stock higher,” Wedbush said in a note ahead of Nike’s quarterly .

In economic news, fresh housing data continued to show the pain from red-hot mortgage rates following the fast pace of Federal Reserve this year.

topped forecasts in November, but , a gauge of activity for future projects, fell to an 18-month low, fueling worries about further downside activity.

“With the November drop, permits are now below the level of starts, which is very rare and points to further downside for construction activity,” Jefferies said in a note.