| US stocks ended Monday’s session flat to slightly lower as bond yields set four-year highs. The Dow Jones Industrial Average ended down 0.1% to 24,448.69, the S&P 500 was steady at 2,670.29 and the Nasdaq fell 0.3% to 7,128.60. US bond yields resumed their push higher amid expectations that the Federal Reserve will lift interest rates, with the yield on the 10-year note trading just under 3% after hitting its highest level since January 2014 on Friday. Markets are now pricing in four interest rate hikes this year versus the three signalled by policymakers. IG analyst Chris Beauchamp said: "The talk of the town continues to be the benchmark US ten-year, whose move towards a 3% yield seemingly has everyone captivated. While some fear that a move through this level will trigger a cataclysm, the reality is probably a tad more prosaic. Equities do look less attractive if fixed income yields keep rising, but in an environment of still-healthy global growth (which we still have as the PMIs so far today have reminded us) it is perfectly possible for both bonds and equities to keep rising." Konstantinos Anthis, head of research at ADS Securities, said strong earnings results should underpin stocks in the short-term but as yields continue their rally higher traders "should not drop their guard". "Even a small deterioration in sentiment could trigger a sell-off for global equities as yields threaten the upside potential," he said. On the geopolitical front, North Korea vowed over the weekend to put an end to its nuclear and missile tests. Kim Jong-Un said no further tests were needed as the North had demonstrated that it had nuclear weapons. Kim, who was due to meet next week with South Korean president Moon Jae-In for the first inter-Korean summit in more than 10 years, said on Saturday: "From 21 April, North Korea will stop nuclear tests and launches of intercontinental ballistic missiles." On the data front, the Chicago Federal Reserve's national activity index slowed in March from an upwardly revised, multiyear-high reading in February as weaker levels of hiring across a strong job market forced down the broader index. The Chicago Fed's index came in at a positive 0.10 in March, down from the upwardly revised positive 0.98 in February, the highest mark the volatile index had recorded since the 1.19 it posted all the way back in October 1999. Elsewhere, factory and service sector activity in the States picked up noticeably in April, according to the results of two widely-followed surveys, which some economists said pointed towards scope for positive surprises on the growth front in the near-term. IHS Markit's composite US purchasing managers' index, which combines survey findings for both those sectors, jumped from a reading of 54.2 for March to 54.8 last month. Within that, the survey compiler's factory sector PMI jumped from 55.6 to 56.5 (consensus: 55.0), reaching a 43-month high and the services sector PMI also strengthened, rising from 54.0 to 54.4 - a two-month high. According to IHS Markit's Chris Williamson, there was room for "substantial upside surprises" on the US growth front in coming months. Lastly, US home existing sales advanced in March thanks to an improved level of activity in the Northeast and Midwest states. However, a distinct lack of houses on the market and increased prices caused many concerns ahead of the spring selling season, the National Association of Realtors. Existing home sales rose 1.1% to a seasonally adjusted annual rate of 5.6m units in March marking the second straight monthly increase in existing home sales, which account for around 90% of all US home sales. This was ahead of expectations for an annual rate of 5.55m. On the corporate front, the technology sector will be in focus this week, with earnings from Google parent Alphabet, Twitter and Facebook, which was recently hit by the Cambridge Analytica scandal. Facebook is expected to report first-quarter earnings of $1.36 a share on Wednesday and revenue of $11.41bn. London Capital Group analyst Jasper Lawler said: "Even if it produces blow out numbers, it will be hard for Facebook to escape the cloud of uncertainty in the short-term." Consumer products company Kimberly Clark ended down on Monday despite lifting its full-year sales forecast. Hasbro rallied after it revealed a $112.5m net loss as a result of the liquidation of Toys R Us, while oilfield services giant Halliburton ticked higher after posting a 34% jump in revenue on increased demand across North America. | 
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