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Bond yields drop as Trump blasts rate hikes

The Trump effect is back to hitting markets, with Treasury yields slipping as the president blasts the Fed. Plus, Microsoft earnings are coming any minute now, and we’ll have the results. And a warning light is flashing at Tesla. We break down a big analyst downgrade of the electric carmaker.

Plus, why the latest deal at Costco could have you flying private. Catch The Final Round at 3:55 ET p.m. with Jen Rogers, Yahoo Finance markets correspondent Myles Udland, and columnist Rick Newman.

Winners and losers

Stocks in the green include Discovery Communications as Goldman Sachs upgrades the stock to Conviction Buy with a $33 price target; Lions Gate Entertainment as SunTrust Robinson Humphrey upgrades the stock to Buy, citing potential subscriber gains from the Starz network; and IBM shares are higher as it beat on both the top and bottom line, reporting revenue growth in each of the past three quarters. IBM is now generating more revenue from its strategic imperatives — areas like social, mobile, analytics and cloud.

Stocks in the red include eBay, which beat on earnings but missed on revenue and had weak guidance; American Express as the payments company beat on earnings, but missed Wall Street estimates on revenue; and Tesla shares are slipping as Needham downgrades the electric carmaker to Sell, claiming Model 3 cancellations may be higher than new orders.