U.S. stocks fall with Treasuries

U.S. stocks halted a six-day rally as disappointing results from Walmart weighed on major indexes as the dollar pushed higher. Treasuries fell amid a heavy slate of U.S. debt issuance, with short-end auctions drawing some of the highest yields in almost a decade.

The S&P 500 index slipped below its average price for the past 50 days. Walmart sank the most since 1988, while a rally in chipmakers boosted the Nasdaq 100 Index. The Treasury’s auctions of two-year notes and three- and six-month bills went off at rates unseen since 2008, while the 10-year rate was up to 2.89 percent.

The U.S. Treasury on Tuesday sold $179 billion of securities as it works to rebuild its cash balance. Surging rates catalyzed one of the steepest equity sell-offs in years two weeks ago. While investors seem to have adjusted to 10-year rates at a four-year high, the deluge of supply could push yields higher.

While speculators are turning bearish, money managers are looking at the highest U.S. yields in years as a buying opportunity. Investors will also get to parse minutes this week from the most recent meetings of both the Federal Reserve and the European Central Bank.

The U.S. stock market only had a taste of the potential damage from higher bond yields, with the biggest test yet to come, according to Morgan Stanley.

Qualcomm raises bid for to $44B

Qualcomm on Tuesday increased its takeover bid for rival chipmaker NXP Semiconductors to about $44 billion in hopes of shoring up support for the deal, and to fend off its own unwanted suitor, Broadcom. Qualcomm would pay $127.50 for each NXP share, 16 percent more than originally proposed, and the threshold for how many NXP shareholders must agree would be lowered to 70 percent. The revised bid was enough to win over investors controlling roughly 28 percent of NXP’s shares. The question is whether the new offer will force Broadcom to walk away from its $121 billion bid for Qualcomm.

Philadelphia plans tech hub

An empty lot will soon be transformed into a public park filled with lawns, walkways and redwood trees, in the first stage of one of Philadelphia’s biggest real estate projects. The 1.3-acre park, to be known as Drexel Square, kicks off a 20-year, $3.5 billion development that aims to create a hub for technology and life-sciences companies called Schuylkill Yards. The project is also intended to develop business opportunities for research coming out of Drexel University and the University of Pennsylvania, both just a few blocks away.