Stock indexes are down today, with the Dow Jones falling to a 1-week low. Concerns over consumer spending arise after Walmart reports weaker-than-expected Q2 EPS. Higher bond yields affect stocks, with the 10-year T-note yield up +3 bp. US manufacturing activity shows strength, possibly dissuading Fed interest rate cuts.

US jobless claims rise, with initial claims at a 2-month high of 235,000 and continuing claims at a 3.75-year high of 1.972 million. The labor market is weaker than expected, making it harder for those out of work to find new jobs.

US Vice President Vance focuses on negotiations to end Russia’s war in Ukraine, aiming to provide security guarantees and resolve territorial disputes. Talks may impact tariffs, oil prices, and European security. Markets await news on tariffs and Ukraine peace progress, with Fed Chair Powell speaking on the economic outlook at Jackson Hole.

President Trump expands steel and aluminum tariffs to include consumer items containing metals. Plans for tariffs on semiconductors and pharmaceutical imports are in the works. Recent tariff tensions with China and India persist, raising the average US tariff rate.

S&P 500 Q2 earnings are on track to rise +9.1% y/y, exceeding expectations and marking a four-year high. Overseas markets show mixed results, with the Euro Stoxx 50 down, China’s Shanghai Composite up, and Japan’s Nikkei down.

Interest rates rise with the 10-year T-note yield increasing. Fed-friendly economic news supports T-notes despite hawkish comments. European government bond yields also rise. The Eurozone sees stronger manufacturing and composite PMI figures.

US stock movers include Walmart, Maplebear Inc, SharkNinja Inc, Gilead Sciences, and Monday.com Ltd among others. Earnings reports for August 21 include Intuit Inc, Louisiana-Pacific Corp, Ross Stores Inc, Walmart Inc, Workday Inc, and Zoom Communications Inc.

Fed Governor Lisa Cook intends to remain at the Fed amid calls for her resignation. European government bond yields rise while the Eurozone sees positive PMI figures. Swaps indicate a low chance of a rate cut by the ECB.

Markets are focused on tariff news and Ukraine peace progress. Recent tariff tensions with China, India, and others continue. Fed funds futures show a reduced chance of rate cuts at upcoming FOMC meetings.

Read more at Yahoo Finance: Stocks Fall as Bond Yields Climb