Investing.com - Shares of restaurant and video game chain Dave & Buster’s jumped midday, while interest-rate sensitive sectors reacted to the United States 10-Year yield topping 3% briefly.
Cannabis stocks were also active, with money suddenly diverting out of recent favorite Tilray.
Dave & Buster’s Entertainment (NASDAQ:PLAY) stock jumped about 7% at 11:55 AM ET (15:55 GMT). The company hit all the right notes for investors in its earnings report before the bell.
Profit handily topped expectations, while sales beat estimates. A 2.4% drop in same-stores sales was smaller than the 2.6% fall Wall Street forecast.
The company raises its full-year sales guidance to $1.23 billion to $1.255 billion (vs. $1.2 billion to $1.24 billion previously), and boosted same-stores sales guidance to a decrease of low-single digits from a decrease of low-to-mid-single digits.
In the red-hot cannabis sector, recent darling Tilray (NASDAQ:TLRY) lost about 5% on a report that Canadian investors in marijuana stocks could face a lifetime travel ban to the U.S.
But Canopy Growth (NYSE:CGC), which was lately out of favor after a strong run, jumped about 4.5%.
Meanwhile, bond yields climbed following a retail sales report where a very strong revision to July’s gain overshadowed a smaller-than-expected August rise. The boost in retail sales to start the quarter raised expectations that the economy could again see 4% quarterly growth, pushing yields on bonds up.
Dividend-heavy sectors like utilities, telecom and real estate, which struggle when rates rise, were the worst-performing sectors in the market.
The S&P Real Estate Sector index was the biggest drag on the market, falling about 1.2%.
On the flip side, the S&P Financial Sector index, where banks rise with higher rates, gained about 0.5%.