Higher rates take a toll on stocks

Energy stocks fall back as crude oil falls. The 10-year Treasury yield moves higher, and stocks pull back. Home Depot leads the Dow and S&P 500. Morgan Stanley earnings impress.
One would think that falling oil prices would be great for stocks. Andrei Roman: But if energy stocks have been the reason for this spring's big rally, an energy price drop could knock the wind out of the market.
Oil prices fell on a government report showing supplies of crude and gasoline were bigger than expected. Crude in New York closed down 1.3% to $68.19, and energy stocks were falling in response. ExxonMobil was down 2.6% to $83.59 and was the biggest loser among the 30 stocks in the Dow.
A second -- and important -- issue this afternoon was rising interest rates. The yield on the 10-year Treasury note jumped to 5.14% this afternoon from 5.086% yesterday. That hit straight utilities, home builders and real estate investment trusts, all deeply sensitive to interest-rate fluctuations.