Archive for April, 2010

Dow in triple-digit rally - CNNMoney.com -- Stocks jumped Thursday, with the blue-chip Dow index ending more than 120 points higher, as investors reacted to a rise in Exxon Mobil earnings and brushed off concerns about European debt problems.

The Dow Jones industrial average gained 122 points, or 1.1%, to end at 11,167.32. The S&P 500 index added 15 points, or 1.3%, to settle at 1,206.77. The Nasdaq composite rose 40 points, or 1.6%, to end at 2,511.92.

Treasurys inch up after 7-year auction - CNNMoney.com -- Treasury bonds inched up Thursday, after investors showed a healthy appetite for U.S. bonds in the government's last of several auctions totaling $129 billion this week.

What prices are doing: The benchmark 10-year note rose 8/32 to 99-3/32, driving the yield down to 3.74%. The 30-year bond rose 14/32 to 100-13/32 with a 4.6% yield. The 2-year note inched up to 100 with a 1.01% yield. The 5-year note rose 1/32 to 100-1/32 with a yield of 2.5%. Bond prices and yields move in opposite directions.

Foreclosure easing in big cities but still spreading - Foreclosure filings declined in more than half of the country's worst-hit spots in the first three months of 2010. But that doesn't mean the healing has begun.

In a release issued Thursday, RealtyTrac, a leading online marketer of foreclosed homes, reported that foreclosure filings declined in 14 of the top 20 cities year-over-year, most of which are concentrated in the Sunbelt "bubble" states of California, Arizona, Florida and Nevada.

But the improvement during the first quarter, compared with 12 months earlier, may have been a statistical glitch, not evidence of a real trend.

"The decreasing foreclosure activity in some of the nation's top foreclosure hot spots in the first quarter is not a sure signal that those areas are out of the woods yet," said RealtyTrac CEO James Saccacio. Plus, those improvements bucked the market's general trend: Nationwide foreclosures rose 16% during the quarter.

Dow back above 11,000 - CNNMoney.com -- The Dow gained Wednesday after the Federal Reserve said that economic activity is picking up, and that it will hold a key short-term interest rate steady for an extended period of time.

The broader market was mixed as investors considered European debt issues and a batch of quarterly earnings reports.

The Dow Jones industrial average gained 53 points, or 0.5%, reclaiming the 11,000 level it lost in the previous day's selloff. The 11,000 level has psychological meaning, but is not a key technical level for traders.

The S&P 500 index added 7 points, or 0.7%, closing above 1,185, a key support level. The Nasdaq composite was barely changed.

Treasurys slip after Fed announcement - CNNMoney.com -- Treasurys fell Wednesday, after a government auction drew moderate demand and the Federal Reserve announced it will leave interest rates unchanged for an "extended period."

What prices are doing: The benchmark 10-year note fell 17/32 to 98-29/32, pushing the yield up to 3.76%. The 30-year bond slipped 23/32 to 100, and its yield rose to 4.63%.The 2-year note shed 5/32 to 99-30/32 with a 1.04% yield. The 5-year note was down 11/32 to 100 with a yield of 2.5%. Bond prices and yields move in opposite directions.

Fed: Economy better, rates to stay low - The Federal Reserve said Wednesday it sees further signs of improvement in the U.S. economy, but not enough to start raising its key interest rate from near 0% anytime soon.

The Fed's statement Wednesday once again spoke of a U.S. economy now in recovery, stating that "economic activity has continued to strengthen and that the labor market is beginning to improve."

But the central bank made little change in its language used to describe the outlook for its policy, saying it expects that economic conditions will "warrant exceptionally low levels of the federal funds rate for an extended period," as it has at every meeting since June of last year.

The fed funds rate, the central bank's key overnight lending rate, is a benchmark used to set interest rates on a wide variety of consumer and business lending.

In December 2008, the Fed cut the rate to near 0% in an effort to spur economic activity, and has left it there ever since.

Dow plunges 213 points, breaks 11K - CNNMoney.com -- Stocks fell Tuesday after Standard & Poors cut Greece's debt rating to junk and lowered Portugal's debt rating, raising fears that a euro zone debt crisis could slow the global economic recovery.

The Dow Jones industrial average tumbled 213 points, or 1.9%, closing below 11,000, a key psychological level. The Dow ended the previous session at its highest point in 19 months. The slide was the Dow's biggest one-day point drop since July 15, 2009, when it lost 257 points.

The S&P 500 index fell 28 points, or 2.3%, closing below 1,200, a psychological level traders look at. The Nasdaq composite slid 51 points, or 2%.

Bonds jump after Greece and Portugal downgrades - CNNMoney.com -- Treasury prices gained Tuesday after both Greece and Portugal saw their debt downgraded.

What prices are doing: The benchmark 10-year note added 25/32 to 99-9/32, pushing the yield down to 3.72% from 3.81% late Monday. The 30-year bond soared 1-12/32 to 100-23/32 with a yield of 4.58%. The 2-year note edged up 4/32 to 100-1/32 and yielded 1%. Bond prices and yields move in opposite directions.

Home prices inch up - February home prices posted their first year-over-year increase since December 2006, according to a report out today.

Home prices inched up 0.6% compared to February 2009 according to the S&P/Case-Shiller 20-city index, with nine of the 20 cities showing gains.

"The homebuyer tax credit, available until the end of April, is the likely cause for these encouraging numbers," said David Blitzer, chairman of the index committee at S&P.
But home prices actually fell by 0.9% compared with January. The dip was small enough to put prices in positive territory compared with 12 months earlier, when home prices were falling very steeply.

Indeed, 18 cities saw month-over-month price declines in February and six cities, including New York, Las Vegas and Seattle, posted new lows for this downturn.

Stocks sputter after hitting '10 highs -  CNNMoney.com -- The Dow managed to eke out a fresh 19-month high Monday on Caterpillar's strong earnings, but a selloff in financials hit the broader market at the start of a busy week on Wall Street.

The Dow Jones industrial average ended just above unchanged, with Caterpillar and a few other stocks countering the weakness in financials.The S&P 500 index lost 5 points, or 0.4%, after ending Friday's session at a 19-month high. The Nasdaq composite lost 7 points, or 0.3%, after ending the previous session at the highest point in almost two years.

Treasurys: busy week ahead - CNNMoney.com -- Treasurys rose Monday, as investors look ahead to a busy week featuring $129 billion in government auctions, a Federal Reserve decision on interest rates and continued concerns about Greece's debt.

What prices are doing: The benchmark 10-year note rose 4/32 to 98-22/32, pushing the yield down to 3.81%. The 30-year bond was flat at 99-12/32 and a yield of 4.67%.The 2-year note rose 1/32 to 99-29/32 with a 1.06% yield. The 5-year note was up 4/32 to 99-22/32 with a yield of 2.57%. Bond prices and yields move in opposite directions.

Looking ahead: No key economic reports are due out Monday, but the week ahead offers several potential market-moving events for bonds.

Investors will be watching the Fed's meeting on Wednesday, looking for the buzz words "extended period" in reference to the central bank's position on keeping interest rates near zero. A change in that language could signal the Fed is taking a more optimistic view of the economy and may be ready to change monetary policy sooner rather than later in the year.
Bond traders also will continue to watch Greek headlines to see if the debt-laden country gets its bailout package to avoid a May default.

Reports on jobless claims, consumer confidence and gross domestic product are also expected this week.

Stocks make a comeback - CNNMoney.com -- Stocks ended higher Thursday, erasing a steep morning selloff sparked by Greek debt default worries, a spike in the dollar versus the euro and a plunge in commodity prices.

Also in focus: President Obama's speech on financial reform, a better-than-expected housing market report, a mixed reading on weekly jobless claims, a rise in wholesale inflation and the latest round of corporate profit results.

The Dow Jones industrial average gained 9 points, or 0.1%, having been down as much as 108 points in the morning. The S&P 500 index rose 3 points, or 0.3%. The Nasdaq composite rose 14 points, or 0.6%.

Treasurys turn lower on upcoming supply - CNNMoney.com -- Treasury prices gave up gains and turned lower Thursday after the Treasury announced a fresh supply of U.S. debt to be auctioned next week.

What prices are doing: The benchmark 10-year note fell 9/32 to 98-25/32, pushing the yield up to 3.78% from from 3.75% late Wednesday. The 30-year bond slipped 11/32 to 99-25/32, and its yield rose to 4.64%.The 2-year note shed 2/32 to 99-30/32 with a 1.04% yield. The 5-year note was down 7/32 to 99-27/32 with a yield of 2.54%. Bond prices and yields move in opposite directions.

Existing home sales soar in March - CNNMoney.com -- Existing home sales jumped 6.8% in March, with home buyers racing to get a tax credit that expires in April, according to a real estate industry report released Thursday.

The National Association of Realtors reported that existing home sales rose last month to a seasonally adjusted annual rate of 5.35 million units, up from the revised rate of 5.01 million in February. Sales year-over-year were up 16.1%.

Analysts surveyed by Briefing.com had expected the March sales rate to hit just 5.29 million annual units. Home resales have been above year-ago levels for nine straight months, according to the report.

Jobless claims fall for 1st time in 3 weeks - The number of Americans filing initial claims for unemployment insurance fell for the first time in 3 weeks, according to government data released Thursday.

There were 456,000 initial jobless claims filed in the week ended April 17, down 24,000 from a revised 480,000 the previous week, according to the Labor Department's weekly report.

Stocks seesaw on mixed earnings - CNNMoney.com -- Stocks ended mixed after a choppy session Wednesday, as differing profit reports from Apple and Yahoo weighed on the tech sector and investors remained wary following strong quarterly reports from Morgan Stanley and Wells Fargo.

The Dow Jones industrial average added 8 points, or less than 0.1%, to end at 11,124.92. The S&P 500 index fell 1 point, or 0.1%, to settle at 1,205.93, and the Nasdaq composite rose 4 points, or 0.2%, to close at 2,504.61.

Treasurys rise on Greek debt concerns - CNNMoney.com -- Treasurys rose Wednesday as concerns about Greek debt sparked demand for U.S. debt.

What prices are doing: The benchmark 10-year note climbed 16/32 to 99-2/32, pushing the yield down to 3.75% from 3.80% late Monday. Bond prices and yields move in opposite directions.

The 30-year bond rose 1 point to 100-5/32, and its yield fell to 4.62%.The 2-year note edged higher 1/32 to 100 with a 1.01% yield. The 5-year note increased 7/32 to 100-1/32 with a yield of 2.50%.

Stocks rise on earnings - CNNMoney.com -- A surge in energy prices and better-than-expected profit reports from Goldman Sachs and others helped stocks Tuesday.

The Dow Jones industrial average added 25 points, or 0.2%. The S&P 500 index gained 10 points, or 0.8%. The Nasdaq composite gained 20 points, or 0.8%.

Treasurys little changed on stock market gains - CNNMoney.com -- Other than an upward blip in the 30-year bond, Treasurys were little changed Tuesday as bonds investors hold back on a day offering no major economic reports.

What prices are doing: The benchmark 10-year note inched up 2/32 to 98-27/32, pushing the yield down to 3.8%. The 30-year bond rose 13/32 to 99-9/32, and its yield fell to 4.67%. Bond prices and yields move in opposite directions.

Meanwhile, prices fell on shorter term Treasurys .The 2-year note slipped 1/32 to 99-22/32 with a 1.02% yield. The 5-year note fell 2/32 to 99-27/32 with a yield of 2.54%.

What's moving the market: The stock market welcomed good news from Goldman Sachs, which despite facing fraud charges, posted a stronger-than-expected profit of $3.5 billion in its latest quarter. Since Tuesday offered no major economic reports, bond investors are either holding back or taking their cues from

Dow pulls out a gain - CNNMoney.com -- Stocks ended mostly higher Monday as investors set aside some worries about the fallout from Goldman Sachs and scooped up financial, consumer and energy stocks.

The Dow Jones industrial average added 73 points, or 0.6%, after having been down by as much as 41 points earlier. The S&P 500 index gained 5 points, or 0.5%. The Nasdaq composite ended just below unchanged.

Treasurys down as Goldman news sinks in - CNNMoney.com -- Treasurys unwound their earlier rally on Monday, after the news of the fraud charges against Goldman Sachs sank in over the weekend.

What prices are doing: The benchmark 10-year note fell 9/32 to 98-18/32, pushing the yield up to 3.81%. The 30-year bond fell 12/32 to 98-27/32, and its yield rose to 4.7%. The 2-year note fell to 2/32 to 100 with a 1% yield. The 5-year note fell to 99-29/32 with a yield of 2.53%. Bond prices and yields move in opposite directions.

Building permits surge to 17-month high - In the latest sign of improvement in the housing market, applications for permits to build new homes jumped 7.5% in March, the government said Friday.

The Commerce Department said the number of building permits issued during March, considered a gauge of future construction activity, rose 7.5% to a seasonally adjusted annual rate of 685,000 from February's revised 637,000 rate.

The March tally was the highest since October 2008, when 729,000 permits were issued. Permits were up 34.1% versus March 2009.

Economists surveyed by Briefing.com had expected building permits would fall to 625,000.
The increase is encouraging because most of the homes authorized in March will not be completed in time for borrowers to take advantage of popular home buyer tax credit, said David Crowe, chief economist at the National Association of Home Builders.
The credit, worth up to $8,000, expires later this month and buyers must sign a contract by June to qualify.

Treasurys edge higher - CNNMoney.com -- Treasury prices rose Thursday as concerns about Greece kept demand for U.S. debt strong.

What prices are doing: Long-term securities, including the 10-year and 30-year, fell Thursday while shorter term notes rose.

The benchmark 10-year note was up 7/32 to 98-10/32, pushing the yield down to 3.84%. The 30-year bond rose 8/32 to 98-18/32, and its yield fell to 4.71%. The 2-year note edged up 3/32 to 99-31/32 with a 1% yield. The 5-year note rose 8/32 to 99-25/32 with a yield of 2.6%.

Bond prices and yields move in opposite directions.

Stocks hang on to gains - CNNMoney.com -- Stocks ended positive Thursday to close a volatile session, as investors took the latest jobless claims report in stride and Google reported much better-than-expected earnings after the closing bell.

The Dow Jones industrial average added 21 points, or 0.2%, to close at 11,144.57. The S&P 500 index gained 1 point, or 0.1%, to end at 1,211.67. The Nasdaq composite was up 11 points, or 0.4%, to end at 2,515.69.

Stocks soar to major milestones - CNNMoney.com -- Stocks rallied Wednesday, with the Standard & Poor's 500 and Nasdaq composite indexes crossing significant milestones for the first time in more than a year and a-half, after quarterly results from JPMorgan Chase and Intel and strong retail sales figures.

The Dow Jones industrial average surged 104 points, or 0.9%, to end at 11,123.11, the highest level since September 2008. The S&P 500 index gained 13 points, or 1.1%, to close at 1,210.65, marking the first time the index has closed above the 1,200 mark in almost 19 months. The Nasdaq composite added 39 points, or 1.6%, to end at 2,504.86. It was the first time since June 2008 that the index has ended above 2,500.

Year-to-date, the Dow is up 6.7%, the S&P has gained 8.6% and the Nasdaq has soared 10.4% as of Wednesday's close.

Treasurys fall as stocks hit highs - CNNMoney.com -- Treasurys fell late Wednesday after a raft of upbeat data pushed stock indexes to new milestones, turning investors away from safe-haven bonds.

What prices are doing: In late trading, the benchmark 10-year note fell 11/32 to 98-11/32, driving the yield up to 3.87%. The 30-year bond fell 26/32 to 98-10/32, and its yield rose to 4.73%. The 2-year note was flat at 99-29/32 with a 1.06% yield. Bond prices and yields move in opposite directions.

Purchase Loan Applications Fall as Tax Credit Expiration Draws Closer – The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 9, 2010.

Based on the survey, applications for government mortgages dropped substantially last week, following the implementation of an increase in FHA mortgage insurance premiums," said "Applications for conventional mortgages also dropped last week, with refinance application volume continuing to drop following last week's jump in rates.