CAT - S&P Lower as Treasury Rates Rise

The S&P 500 slipped Wednesday, as Treasury yields tracked higher following the release of stronger-than-expected U.S. economic data.

The Dow Jones Industrials made up some ground on breakeven as morning became afternoon, but was still in minus territory 39.88 points at 37,321.24.

The much broader index sank 27.78 points to 4,738.20.

The NASDAQ thundered lower 132.69 points to 14,811.68.

Charles Schwab shed nearly 3% after reporting mixed quarterly results. Intel and Caterpillar both declined around 3%, leading the Dow's losses. Meanwhile, Boeing gained 1.6%, making it the biggest gainer in the Dow after weeks of heavy losses.

Retail sales data for December came in stronger-than-expected, indicating a resilient consumer and putting aggressive rate cuts from the Federal Reserve into doubt. Retail sales were up 0.6% from November, and gained 0.4% month-over-month excluding autos. Economists polled by Dow Jones had estimated a 0.4% month-to-month increase in retail sales and 0.2% ex-autos.

So far, traders are pricing in a roughly 60% chance that the Federal Reserve begins cutting rates in March as hopes mount for a pivot.

The Federal Reserve's beige book and business inventories for November are also slated for Wednesday, along with remarks from New York Federal Reserve Bank President and CEO John Williams.

Prices for the 10-year Treasury slipped, raising yields to 4.10% from Tuesday's 4.07%. Treasury prices and yields move in opposite directions.

Oil prices subtracted 67 cents to $71.19 U.S. a barrel.

Gold prices plunged $22.40 to $2,007.80.