Bonds are getting smoked

Stocks opened lower on Tuesday after the Dow and S&P 500 closed at all-time highs to start the week.

Near 9:43 a.m. ET, the Dow was down 8 points, the S&P 500 was down less than a point, and the Nasdaq was up 5 points.

The big moves on Tuesday, however, are happening in bonds and in the US dollar.

Bonds are selling off and yields are climbing.

The yield on the benchmark 10-year Treasury note rose to a year-to-date high of 2.303%, a climb of about 5 basis points, or 0.05%.

The long 30-year bond yield was also up 5 basis points at around 3.07%.

The US dollar rallied after we got strong data on housing starts last month. The dollar index rose by more than 1% to as high as 95.94. On Monday, the dollar rebounded from a four-month low.

In April, housing starts surged to the highest level since November 2007. Data out this morning showed that starts rose 20.2% to an annualized pace of 1.135 million, versus expectations for a 9.6% rise to an annualized rate of 1.01 million.

Building permits rose 10.1% to an annualized pace of 1.143 million, versus forecasts for a 2.1% to an annualized pace of 1.06 million.

We got more retail earnings this morning. Wal-Mart missed on the top and bottom lines in the first quarter, taking a knock on earnings from foreign currency headwinds and the wage rise it announced in February. Its stock fell by more than 3% in early trading.

But TJX Companies — parent of TJ Maxx – beat on earnings and revenues, and rose by more than 3%.

Urban Outfitters reported a big miss on Monday evening, leading Oppenheimer analysts to downgrade the stock. It fell by more than 14% on Tuesday.

NOW WATCH: Don’t embarrass yourself — make your Excel spreadsheet look more professional with drop-down menus

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.