Stocks closed lower on Tuesday after a recent run-up in global bond yields unsettled investors already concerned about rising interest rates. Bobbi Rebell reports.
Stocks bounced back from a deep dive coming back from the day's worst losses. Investors bought stocks on the dips as Treasury yields fell from six-month highs hit in the morning. They also got a dose of good economic news with confidence rising among small business owners last month. S&P Capital IQ strategist Sam Stovall notes the bull market has stretched into its seventh year. SOUNDBITE: SAM STOVALL, U.S. EQUITIES STRATEGIST, S&P CAPITAL IQ (ENGLISH) SAYING: "As we're in year seven, traditionally, investors get increasingly nervous, mainly because they know we are well beyond the average age of a bull market, which is four-and-a-half years." Verizon's buying AOL for $4.4 billion. It's paying a 17 percent premium, and AOL shares shot up just past the $50 offer price. Verizon is bulking up just as a mega merger between its rival, AT&T, and DirecTV, is about to clear. Dow Jones reporting that regulators are unlikely to block that deal, sending both stocks higher. Egan Jones CEO Sean Egan: SOUNDBITE: SEAN EGAN, CEO, EGAN JONES (ENGLISH) SAYING: "It makes some sense from the perspective that DirecTV - I always think of the ticker DTV - is in the business of video delivery. OK, they're not creating that much content. It's really the delivery of that. And that's the core business of AT&T, which is very different from the recently announced today acquisition of AOL." Google's robocars have been involved in 11 fender benders. Its program director, however, says none of them caused the accidents over the last six years. Google is also one of several tech titans, like Apple and Microsoft, that could be the subject of a crackdown. Australia has drafted new legislation to tighten loopholes that allowed the biggest multinationals to avoid paying taxes. Those stocks lost ground. Separately, Apple CEO Tim Cook told Xinhua news agency that his company is in talks with Alibaba and Chinese banks over launching its mobile payments system in China. A number of brokerages cut their price targets on Gap Stores the day after it reported that the strong dollar had pushed the apparel retailer's sales down in the first quarter. A selloff in the global bond markets led to sharp drops in European shares. The main indices lost more than one percent.