Although the Dow Jones added nearly 500 points last Friday, stock markets will continue to watch the 10-year Treasury bill yield like a hawk. Yields confidently surpassed the 5.0% level, setting a new normal for debt markets. That puts substantial pressure on interest rate-sensitive markets, including utilities and telecom firms.
Watch Charter Communications (CHTR). The stock fell by 3.95% to close at $112.91. Analysts at Wolfe Research are warning that DSL internet infrastructure faces sunsetting risks. Supply from satellite is rising while fiber pricing is falling. Investors sold off shares of Charter and Comcast (CMCSA).
Zscaler (ZS) lost 10% last Friday to close at $193.05. The cybersecurity firm’s stock rallied from a $130 low in June, but selling pressure accelerated above $200. The firm appointed Ross Tackett as its new Chief Revenue Officer.
Gen Digital (GEN) plunged from the low $30s to close at $21.62 in recent weeks. On September 24, the Financial Times reported that the firm wanted to buy GoDaddy (GDDY), an internet domain name registration site.
Bloom Energy (BE) has a good chance of breaking out back to the $300 level. Buyers took advantage of the stock’s fall on September 24. Oracle cited a force majeure, sending a worker to visit a data center site. The project is designed to use Bloom Energy fuel cells.
