BEFORE THE BELL: Facebook stock comes back to life; US Bond Yields cause growing concern globally
A rise in US bond yields is causing some investor concern, but that’s being offset by more corporate earnings reports.
Facebook is the big winner as the company announced it had 1.45 billion active users daily despite a recent scandal with Cambridge Analytica. The news is boosting the social media giant’s shares up 6.8 per cent to 171.
Ford shares are also growing as the company announced a nine per cent gain in profits in its first quarter. Although Ford says it will move away from making cars to focus on trucks and SUVs.
Companies like Pepsico, GM, Union Pacific and Time Warner have all released positive earnings reports as well.
Traders are watching to see how the markets react to continued growth in the US Treasury Bonds as yields push over three per cent to a four-year high. Analysts say this could push up borrowing costs for big businesses as interest rates could also jump.
The price of crude is up this morning to 68.44 a barrel and the Loonie is gaining to 77.91 cents US.