Archive for March, 2010

Mixed Finish For Stocks - CNNMoney.com -- Stocks ended mixed Monday, fighting back from big losses, as investors weighed Moody's warning about the United States' AAA rating and a proposed bank regulation bill ahead of Tuesday's Federal Reserve meeting.

The Dow Jones industrial average added 17 points, or 0.1%. The S&P 500 index ended just above unchanged, eking out a fresh 18-month high. The Nasdaq composite slid 5 points, or 0.2% after ending Friday's session at an 18-month high.

Treasurys Look Ahead to Fed Meeting - CNNMoney.com -- Long-term bonds dipped slightly, but U.S. debt prices were otherwise flat Monday, as investors weighed a mix of economic reports and await a Fed meeting Tuesday.

What prices are doing: The benchmark 10-year note fell 1/32 to 99-11/32 and its yield rose to 3.71%. The 30-year bond fell 5/32 to 99-27/32 and its yield rose to 4.636%. Bond prices and yields move in opposite directions.

The 2-year note was flat at 99-28/32 with a yield of 0.956%. The 5-year note was flat at 99-27/32 with a yield of 2.412%.

Stocks manage gains - CNNMoney.com -- Stocks gained Thursday, erasing earlier losses to lift the Nasdaq and S&P 500 to 18-month highs as investors eyed the day's jobs and trade news and the direction of the U.S. dollar.

The Dow Jones industrial average added 44 points, or 0.2%, ending at a six-week high. The S&P 500 index added 5 points, or 0.5%, ending at an 18-month high. The Nasdaq composite gained 3 points, or 0.1%, ending at a fresh 18-month high.

Long-term debt prices rise after auction - Long-term U.S. debt prices rose Thursday after a government auction of $13 billion in 30-year bonds.

What prices are doing: After the auction, the 30-year bond rose 16/32 to 99-13/32 and its yield fell to 4.665%. Bond prices and yields move in opposite directions.

The benchmark 10-year note rose 1/32 to 99-7/32, with a yield of 3.723%.

Short-term notes fell after the auction. The 2-year note fell 3/32 to 99-28/32, with a yield of 0.956%. The 5-year note fell 4/32 to 99-28/32, with a yield of 2.41%.

Stocks Post Modest Gains - CNNMoney.com -- Stocks rose Wednesday, with the Nasdaq ending at its highest level in more than 18 months, on strength in the financial services sector and an upbeat report on wholesale inventories.

The Dow Jones industrial average rose 3 points, or less than 0.1%, at 10,567, according to early tallies. The S&P 500 index added 5 points, or 0.5%, to 1,145.

The Nasdaq composite rose 18 points, or 0.8%, to 2,358. The tech-heavy index closed at its highest level since August 2008. Wednesday marked the 10th anniversary of the Nasdaq's all-time closing high of 5,048.62 at the peak of the dot-com bubble.

FICO: Americans More Likely to Default on Mortgages than Credit Cards - American consumers are now defaulting on their mortgages in even greater numbers than they are walking away from credit card debt.  According to FICO's® Score Trends Service, this is a phenomenon that is historically unique.

FICO said the mortgage default risk for consumers with high FICO scores now exceeds their credit card default risk, even though most credit cards are unsecured credit and mortgages are secured by real estate.  There is a parallel rise in mortgage delinquencies for these high scoring consumers.

The company said that their analysis of trends in FICO scoring shows that recent repayment behavior has shifted significantly from what has historically been expected.

Stocks Muster Gains; Nasdaq at 18-month High - CNNMoney.com -- Stocks managed gains Tuesday at the end of a choppy session as investors mulled the latest corporate deal and profit news on the anniversary of the bear-market bottom.

The Dow Jones industrial average added nearly 12 points, or 0.1%. The S&P 500 index added less than two points. Both closed at 6-week highs. A stock advance fizzled out Tuesday, one year after what many consider to be the bottom of the bear market.

Commercial and Multifamily Mortgages Outperforming Overall Bank Holdings -  Commercial and multifamily mortgages continue to have the lowest rates of charge-offs of any loan types at banks and thrifts and perform better than the overall loan portfolios at those institutions according to the Mortgage Bankers Association (MBA).

The report states that 56 percent of the assets held by banks and thrifts at the end of 2009 consisted of loans and leases, a category that includes 1-4 family mortgages, home equity loans, credit cards and other consumer loans, commercial mortgages, multifamily mortgages, construction loans, and commercial and industrial loans.  One to four family residential loans constitute the largest part of this category of bank holdings at $1.9 trillion or 26 percent of the total; commercial and commercial mortgages represent another $1.1 trillion or 15 percent, and commercial and industrial loans $1.2 trillion or 17 percent.  Multifamily mortgages are a much smaller component at $211 billion or 3 percent of the portfolios but these are the only category of loan to have grown over the last year. 

Nasdaq at 18-Month Highs - CNNMoney.com -- Stocks ended little changed Monday, although the Nasdaq managed to close at an 18-month high, as investors weighed corporate deals, a stronger dollar and weaker commodity prices ahead of key economic news due later this week.

The Dow Jones industrial average lost 14 points, or 0.1%. The S&P 500 index was little changed. Both ended the previous session at their highest levels since Jan. 20.
Stocks rallied Friday after a government report showed the economy lost fewer jobs in February than economists had expected.

But stocks drifted Monday as investors looked to a host of economic news due later in the week, including reports on state-by-state unemployment Wednesday, weekly jobless claims Thursday and retail sales Friday.

Treasurys Retreat in Wake of Supply Wave - CNNMoney.com -- Treasurys continued in a downward trend Monday as investors anticipate a major boost in supply this week. The government will launch multibillion-dollar auctions of Treasurys starting Tuesday.
What prices are doing: The benchmark 10-year note fell 9/32 to 99-9/32 and its yield rose to 3.72%. Bond prices and yields move in opposite directions.

The 30-year bond fell 18/32 to 99-4/32 and its yield rose to 4.68%. The 2-year note remained flat at 99-31/32 with a yield of 0.90%. The 5-year note fell 3/32 to 100-2/32 with a yield of 2.365%.

Dow Positive For 2010 - CNNMoney.com -- Stocks ended a volatile session higher Thursday as investors welcomed improved retail sales and a report showing that the pace of job losses is slowing, ahead of Friday's big government employment report.

The Dow Jones industrial average gained 47 points, or 0.5%. The S&P 500 index added 4 points or 0.4% and the Nasdaq composite gained 11 points or 0.5%.

The strong dollar dragged on dollar-traded commodities as well as on shares of companies that do a lot of business overseas, and therefore benefit from a weaker dollar.

Treasurys Mixed Ahead of Jobs Report - CNNMoney.com -- Investors shifted money from short-term to longer term Treasurys Thursday as they digested a mildly positive report on unemployment claims and tensions eased over Greece's debt.

What prices are doing: The benchmark 10-year note was up 5/32 to 100-6/32 and its yield fell to 3.60% from 3.62%. Showing even stronger growth than the 10-year note, the 30-year bond rose 17/32 to 101-5/32 and its yield dropped to 4.56%.

Bond prices and yields move in opposite directions.

Meanwhile, notes at the shorter end of the curve dropped. The 2-year note fell 3/32 to 100-1/32 with a yield of 2.28%. The 5-year note fell 1/32 to 100-16/32 with a yield of 2.28%

Unemployment Claims Drop - The number of Americans filing for initial unemployment insurance fell last week, the government said Thursday.

There were 469,000 initial jobless claims filed in the week ended Feb. 27, the lowest level since Jan. 9 and down 29,000 from a revised 498,000 the previous week, the Labor Department said in a weekly report.

A consensus estimate of economists surveyed by Briefing.com expected new claims to drop to 470,000.

The 4-week moving average of initial claims was 470,750, down 3,500 from the previous week's revised average of 474,250.

Stocks Eke Out Gains - CNNMoney.com -- Stocks ended with modest gains Tuesday, giving up a bigger advance, as investors weighed February auto sales, some upbeat company news and signs that Greece won't default on its debt.

The Dow Jones industrial average ended just above unchanged. The S&P 500 index added 2 points, or 0.2%, and the Nasdaq composite rose 7 points, or 0.3%.

Stocks had been modestly higher throughout the session, but lost some steam in the afternoon. A selloff in some of the Dow's tech stocks dragged on the index. Bank stocks gave up bigger gains by the close, also causing the market to lose steam.

Oil prices rise on weaker dollar - CNNMoney.com -- Oil prices climbed Tuesday on a weaker dollar and as investor optimism about the economic recovery boosted fuel demand. Oil retreated Monday as the dollar strengthened and investors focused on a weaker-than-expected manufacturing report.

What's driving prices: Prices followed stocks higher Tuesday amid expectations that a rescue package for Greece is near.

Crude was also boosted by a weaker dollar, which fell against the euro and the yen. Oil and other commodities that are priced in dollars often rise when the U.S. currency weakens.

Nasdaq, S&P Turn Positive for 2010 - CNNMoney.com -- Stocks jumped Monday, with the Nasdaq and S&P 500 pushing back into positive territory for the year, as investors welcomed AIG's $35 billion asset sale and a pair of mergers in the pharmaceutical sector.

Signs that a Greek bailout package is in the works also came into play. The Dow Jones industrial average gained about 79 points, or 0.8%. The S&P 500 index added 11 points, or 1%, and the Nasdaq composite jumped 35 points, or 1.6%.

Both the S&P 500 and the Nasdaq ended in positive territory for the year for the first time in over a month.

FHFA Extends High LTV Refinance Program into 2011 -  Homeowners who hope to refinance existing mortgages that are "underwater" just got a reprieve that will allow them another year to do so.  The Federal Home Financing Agency announced Monday that its Home Affordable Refinance Program (HARP), which was originally set to expire on June 30, 2010, will be extended to June 30, 2011.

HARP, part of the Making Home Affordable Program, is designed to expand access to refinancing for otherwise qualified borrowers who cannot move into more affordable mortgages because of a lack of equity in their homes.  Unlike other homeownership assistance programs, HARP guidelines are designed for borrowers who are current on their mortgages.  The program was originally designed to help homeowners with a loan-to-value (LTV) ratio up to 105 percent including those with some equity but not enough to refinance without private mortgage insurance.  Last October that LTV figure was revised upward to 125 percent.