Archive for January, 2010

Blue Chips Gain Ahead of Jobs Report - CNNMoney.com -- A rally in financial shares and signs of improvement in the retail sector gave the blue chips a boost Thursday, but the broader market dragged on jitters ahead of Friday's big government jobs report.

The Dow Jones industrial average added 33 points, or 0.3%. The S&P 500 index added nearly 5 points, or 0.4%. The Nasdaq composite ended just below unchanged.

Stocks struggled Wednesday as weakness in tech and telecom vied with signs of stabilization in the job market and service sector of the economy. The labor market was again in focus Thursday as investors eyed the weekly jobless claims and geared up for Friday's big government jobs report.

Last Chance to Refinance Below 5% - If you want to refinance your mortgage into a loan with a sub-5% interest rate, better hurry. Your window of opportunity is closing fast. Rates are rapidly rising into the 5%-plus category.

During the week of Jan. 7, the average 30-year, fixed-rate loan closed at 5.09%, according to mortgage giant Freddie Mac. That is significantly higher than the 4.71% it averaged at the beginning of the month, and experts say rates will go higher yet.

A big reason for the jump is that a government program that has kept rates very low is winding to a close. The Federal Reserve has been purchasing mortgage-backed securities since early 2009, scooping up as much as $1.25 trillion worth. That has dampened rate increases by providing a ready market for the securities.

But the Fed's program lapses on March 31, when it cedes the playing field to private investors, who will almost surely demand higher rates. The Fed has already been slowing its purchasing, and that has corresponded with the recent rate increases.

Stocks End With Little Change - CNNMoney.com -- The Nasdaq slid and the broader market churned Wednesday as investors mulled weakness in tech and telecom along with signs of stabilization in the job market and services sector of the economy.

The Dow Jones industrial average ended just above unchanged. The S&P 500 index was little changed. The Nasdaq composite lost 7 points, or 0.3%.

After starting off the new year with a big rally, investors were cautious, with stocks churning in a tight range Tuesday and Wednesday. A stronger dollar and some concerns ahead of Friday's big monthly jobs report have created some hesitation on the part of investors.

Market participants are also likely holding back in the wake of a big 2009, in which the S&P 500 gained 23%, the Dow industrials added 19% and the Nasdaq added 44%.

Refinance Loan Apps Still Falling. Purchase Demand Hits 12 Year Low - The Mortgage Bankers Association today released the Weekly Survey on Mortgage Application Activity for both the week ending December 25, 2009 and the week ending January 1, 2009.

In today's release, which reports on the previous two weeks, holiday distractions and rising mortgage rates again had a negative effect on mortgage loan applications.

In the week ending December 25, 2009, loan application demand dropped 22.8 percent with the Refinance Index recording a 30.5 percent decline while the Purchase Index fell 4.0 percent. In the week ending January 1, 2010, mortgage applications rose by 0.5 percent thanks to a 3.6 percent increase in purchase loan apps, meanwhile the refinance index fell by 1.6 percent.

Both week's include an index adjustment to account for Christmas and New Year's day market holidays. On an unadjusted basis, loan application demand fell 46.9 percent during the week of Christmas and increased 0.4 percent ahead of the New Year.

Stocks Struggle After Rally - CNNMoney.com -- Stocks ended a choppy session little changed Tuesday as investors weighed a seesawing dollar, a slew of auto sales and reports on pending home sales and factory orders.

The Dow Jones industrial average lost 12 points, or 0.1%. The S&P 500 index added 3 points, or 0.3%. The Nasdaq composite  was barely changed.

After the three leading indexes climbed to fresh 15-month highs Monday, a weak dollar on Tuesday initially gave a push to dollar-traded commodities and select stocks that do business overseas. But the dollar turned mixed by the late afternoon, diluting its impact.

Homebuyers Sign 16% Fewer Contracts in November - In the data released today, which reported on contract activity in November, the pending home sales index fell more than expected to 96.0 from a revised higher read of 114.3 in October. This was a 16.0 percent decline.

This marks the first decline in the National Association of Realtors (NAR) Pending Home Sales index, released Tuesday, after nine straight months of gains. The drop also exceeded analysts' expectations: A panel of experts from Briefing.com had forecast a 2% decrease.
"People took a breather," said David Crowe, chief economist for the National Association of Home Builders.

NAR chief economist Lawrence Yun blamed the fall on the scheduled end of the first-time homebuyers tax credit, which refunded up to $8,000 in income taxes for qualified homebuyers. The credit initially was to lapse on Dec. 1, but Congress extended it through the end of June.

Before that extension was announced, many house hunters were scrambling to sign contracts under the deadline. Once the credit deadline was pushed back, buyers felt less urgency to sign deals, which left November depleted.

"It will be at least early spring before we see notable gains in sales activity as homebuyers respond to the recently extended and expanded tax credit," Yun said.

Stocks Start Off 2010 With A Rally - CNNMoney.com -- Wall Street surged Monday, starting off the new year on a positive note, after a report showed manufacturing activity is picking up and the weak dollar propelled commodity prices and stocks.

The Dow Jones industrial average rallied 156 points, or 1.5%. The S&P 500 index rose 18 points, or 1.6%. The Nasdaq composite gained 39 points, or 1.7%. All three major gauges closed at 15-month highs.

Stocks fell Thursday in a thinly traded session on the last day of 2009. All financial markets were closed Friday in observance of New Year's Day.

The last month of 2009 saw stocks churning in a narrow range, managing modest gains, but not really charging ahead like in earlier months. The market lost some momentum in November and December. That slowdown coincided with the dollar beginning to firm up and investors opting to close the books early after a difficult year.

"The fact that stocks are up so much today is an encouraging sign, but we need to see a few days of follow through," said Will Hepburn, chief investment officer at Hepburn Capital Management.

Oil Ends at Highest Level in 14 Months - CNNMoney.com -- Oil continued to rally for an eighth straight session and closed at the highest level in more than fourteen months as a pricing dispute and disruption in crude exports between Russia and Belarus worried investors.

Oil for February delivery rose $2.15, or 3%, to close at $81.51 a barrel, the highest settlement since Oct. 9, 2008.

After earlier reports on Monday that Russia briefly cut off supplies to refineries in Belarus, Russia said later in the day that it had resumed exports.

Prices were also boosted by a softer dollar which was down against the euro, pound and the yen. Crude oil, like other commodities, is priced in dollars, and a weaker greenback tends to support prices.