Archive for May, 2010

Stocks stage a big rally - CNNMoney.com -- U.S. stocks soared Thursday, with the major indexes gaining about 3%, after Chinese officials dismissed reports that they're reviewing their nation's investment in European bonds amid concerns about the continent's debt problems.

The Dow Jones industrial average added 285 points, or 2.9%, and finished at 10,259. American Express Intel and Alcoa led the advance, rising more than 5%. The S&P 500 index rose 35 points, or 3.3%, and the Nasdaq composite increased 82 points, or 3.7%.

Treasurys slip as equities rally - CNNMoney.com -- Treasury prices fell for a second day on Thursday as stocks soared and the euro firmed.

What prices are doing: The benchmark 10-year note fell 2/32 to 101-4/32, pushing the yield up to 3.37%, from 3.19% on Wednesday. The 30-year bond lost 4/32 to 102-29/32 and yielding 4.3%. The 5-year note edged lower by 1/32 to 99-21/32, yielding 2.21%, while the 2-year note fell less than 1/32 to 99-24/32, yielding 0.89%. Bond prices and yields move in opposite directions.

Dow ends below 10,000 - CNNMoney.com -- Stocks erased gains by the close Wednesday, with the Dow ending below 10,000 for the first time in three months, as worries about global growth and a slide in the euro overshadowed upbeat economic news.

The Dow Jones industrial average lost nearly 70 points, or 0.7%, ending at the lowest point since Feb. 8. The S&P 500 index lost 6 points, or 0.6%, and the Nasdaq lost 15 points, or 0.7%.

A global market rally and a strong housing market report gave stocks a boost in the morning, but trading was choppy through the rest of the session as the euro weakened. Stocks slipped in the last hour of trading.

Treasury prices fall ahead of auction - CNNMoney.com -- Treasury prices slipped for the first time in three days on Wednesday, even as stocks erased earlier gains.

What prices are doing: The benchmark 10-year note fell 7/32 to 102-22/32, pushing the yield up to 3.19% late Wednesday. On Tuesday, the 10-year note yielded 3.17% after touching 3.06% earlier, the lowest level in 13 months. The 30-year bond edged lower by 17/32 to 104-31/32 and yielding 4.09%. The 5-year note lost 6/32 to 102-9/32, yielding 2.02%, while the 2-year note fell 18/32 to 99-27/32, yielding 0.83%. Bond prices and yields move in opposite directions.

New home sales soar 15% in April - New home sales soared in April as homebuyers rushed to claim the tax credit that expired at the end of the month.

New home sales climbed 14.8% to a seasonally adjusted rate of 504,000 last month, up from an upwardly revised 439,000 in March, the Census Bureau reported on Wednesday. Sales year-over-year were up 47.8%.

A consensus of economists surveyed by Briefing.com had expected April sales to rise to an annual rate of 425,000.

April was the second straight month of increases. In March new home sales snapped a four-month losing streak and surged at the fastest single-month rate in 47 years as homebuyers snatched up properties ahead of the looming deadline for the tax credit.

The homebuyer tax credit, which expired April 30, boosted sales since buyers had to sign contracts by the end of last month. First-time homebuyers qualified for a tax credit up to $8,000, while repeat buyers could get as much as a $6,500 break.

The credit also pushed existing home sales higher during the month, according to a real estate industry report released earlier this week.

Stocks recover from plunge - CNNMoney.com -- Stocks erased most losses by the close Tuesday, with the Dow ending down just 22 points after having fallen close to 300 points earlier in the session, as worries about the global economy were tempered.

The Dow Jones industrial average dropped 22 points, or 0.2%, recovering from larger losses earlier in the day. In the first hour of trading the Dow fell as much as 292 points to 9,774.48, the lowest level since Nov. 4. The S&P 500 was little changed and the Nasdaq lost 2 points, or about 0.1%.

Treasury rates' 'amazing' slide continues - CNNMoney.com -- Treasury prices rallied and yields slipped Tuesday as confidence in the global economy dropped and investors flocked to the safety of the bond market.

Fear in the marketplace has fueled Treasury prices and pressured yields over the past month. While the 10-year yield was about 4% a month ago, it is now hovering near 3%, signaling a plunge in risk appetite.

Treasurys are viewed as low-risk investments since they are backed by the U.S. government, and they are therefore particularly attractive during times of economic uncertainty.

"It really is amazing what a long way Treasurys have come in a very short period of time," said David Coard, head of fixed-income sales and trading at The Williams Capital Group. "It's certainly not based on the fundamentals of the economy, because the economy is in better shape. The reason they are so rich is the uncertainty developing because of the European debt crisis."

What prices are doing: The benchmark 10-year note rose 9/32 to 102-27/32, yielding 3.17% after dipping to 3.06% earlier, the lowest level in 13 months. The 30-year bond added 12/32 to 105-10/32 and yielded 4.07%, while the 5-year note edged up 1/32 to 102-13/32, yielding 2%. The 2-year note was the one exception, losing 2/32 to 100-15/32 and yielding 0.77% after a $42 billion auction of 2-year notes was met with lackluster demand. Bond prices and yields move in opposite directions.

Dow falls to 3-month low - CNNMoney.com -- Stocks tumbled Monday, with the Dow ending at a three-month low as worries about the global economic outlook overshadowed a bigger-than-expected rise in existing home sales.

The Dow Jones industrial average lost 126 points, or 1.2%, closing at its lowest point since Feb. 2. The S&P 500 index declined 14 points, or 1.3%. The Nasdaq composite lost 15 points, or 0.7%.

Stocks had fallen in the early going, turned mixed through the afternoon and then turned lower near the close.

Treasurys begin week higher - CNNMoney.com -- Treasurys rose Monday as stocks ended lower, the euro sank and fears about the global economic recovery persisted.

What prices are doing: The benchmark 10-year note rose 5/32 to 102-12/32, pushing the yield down to 3.22% from 3.23% on Friday. The 30-year bond was the one exception, edging lower by 1/32 to 104-23/32 and yielding 4.1%. The 5-year note added 2/32 to 102-9/32, yielding 2.01%, while the 2-year note gained 1/32 to 100-16/32, yielding 0.75%. Bond prices and yields move in opposite directions.

Existing home sales soar in April - Existing home sales soared in April as home buyers scrambled to claim the tax credit that expired at the end of the month, according to a real estate industry report released Monday.

The National Association of Realtors reported that existing home sales jumped 7.6% last month to a seasonally adjusted annual rate of 5.77 million units, up from the upwardly revised rate of 5.36 million in March. Sales year-over-year were up 22.8%.

Fear spikes, stocks tank - CNNMoney.com -- Stocks got pummeled Thursday, with the Dow, Nasdaq and S&P 500 losing enough to fall into "correction territory" - marked by a drop of more than 10% off the rally highs.

Worries about how the European debt crisis and slump in the euro will impact the global recovery fueled the selling, extending the month-long declines.

The Dow Jones industrial average fell 376 points, seeing its biggest one-day point loss since February 10, 2009. Thursday's point loss was equivalent to 3.6%, the biggest one-day percentage loss since March 5 of 2009.

The loss was bigger than that in the so-called "flash crash" earlier this month in which the Dow lost nearly 1000 points during the session, but ended up closing down just shy of 348 points or 3.2%.

The Nasdaq fell 94 points, seeing its biggest one-day point loss since December 1, 2008. The point loss Thursday was equivalent to 4.1%, its biggest one-day percentage loss since Feb. 17, 2009.

The S&P 500 declined 43 points, its biggest one-day point loss since January 20, 2009. It was equivalent to a percentage loss of 3.9, the S&P's worst since April 20, 2009. Thursday's point and percentage drops for the Nasdaq and S&P were bigger than those made on the day of the flash crash.

Treasurys rally on flight to safety - CNNMoney.com -- Treasurys rallied Thursday as stocks plunged and investors worried about European debt and its effect on the global economy.

What prices are doing: The benchmark 10-year note rose 1-10/32 to 102-13/32, pushing the yield down to 3.22% from 3.36% on Wednesday. The 30-year bond added 2-18/32 to 104-25/32 and yielded 4.1%, while the 2-year note edged up 4/32 to 100-18/32 with a 0.72% yield. The 5-year note rose to 102-13/32, yielding 2.99%. Bond prices and yields move in opposite directions.

Stocks skid on global economic jitters - CNNMoney.com -- Stocks recovered from deep losses posted earlier in the session but ended lower Wednesday, as investors welcomed the Fed's forecast of an improving economy amid lingering fears about the global economy.

The Dow Jones industrial average finished 67 points lower, or 0.6%. Earlier, the index dropped 150 points. The S&P 500 lost 6 points, or 0.5%. The Nasdaq composite slipped 19 points, or 0.8%.

Treasurys little changed amid volatile trading - CNNMoney.com -- Treasurys were little changed Wednesday, as investors looked for direction amid mixed signals out of Europe and the United States.

What prices are doing: Prices straddled the breakeven point much of Wedneday before dipping a bit after the afternoon release of the Federal Reserve's upbeat minutes.

The benchmark 10-year note fell 2/32 to 101-7/32, pushing the yield up to 3.36%. The 30-year bond dropped 3/32 to 102-12/32 and yielded 4.24%; the 2-year note inched lower to 100-14/32, with a 0.76% yield. The 5-year note was down 7/32 to 101-26/32, yielding 2.11%. Bond prices and yields move in opposite directions.

Mortgage delinquencies hit 10% - A dubious distinction was reached during the first three months of 2010: More than 10% of all mortgage borrowers are now behind on their payments.

The delinquency rate hit a record of 10.06% in the first quarter, according to the Mortgage Bankers Association. The seasonally adjusted rate accounts for all mortgages on properties that have up to four units and that are at least one payment late.

The rate has been inching steadily toward this record. In the previous quarter, 9.47% of borrowers were behind on payments; and one year ago, 9.12% were late.

Stocks tumble as euro slumps - CNNMoney.com -- Stocks slumped Tuesday as the euro touched a fresh four-year low versus the dollar, keeping Europe's woes front and center and overshadowing better-than-expected earnings from big U.S. retailers.

The Dow Jones industrial average lost 115 points, or 1.1%. The S&P 500 index lost 16 points, or 1.4%. The Nasdaq composite lost 37 points, or 1.6%.

Treasurys rally as euro plunges to 4-year low - CNNMoney.com -- Treasurys rallied Tuesday as stocks closed lower, the euro tumbled and investors digested conflicting economic data from the government.

What prices are doing: The benchmark 10-year note rose 30/32 to 101-1/32, pushing the yield down to 3.38% from 3.49% on Monday. The 30-year bond added 1-24/32 to 101-31/32 and yielded 4.25%, while the 2-year note edged up 4/32 to 100-16/32 with a 0.75% yield. The 5-year note rose to 101-29/32, yielding 2.1%. Bond prices and yields move in opposite directions.

New home construction surges 41% - New home construction skyrocketed 40.9% in April compared to last year, according to a government report released Tuesday.

Housing starts increased to a seasonally-adjusted annual rate of 672,000 last month, the Commerce Department said. That was a 5.8% rise over March 2010.

Economists were expecting housing starts to jump to 655,000. New construction of single-family homes, the key sector of the housing market, rose 10.2% over the month to an annual rate of 593,000. New construction of multi-family homes -- buildings with 5 or more units -- was 68,000.

Stocks recover after euro rebounds - CNNMoney.com -- U.S. stocks erased losses and finished higher Monday after the euro rebounded from a four-year low and gained ground against the dollar, despite lingering worries about Europe's financial crisis.

The Dow Jones industrial average erased its 184-point loss and added 6 points, or 0.1%. The S&P 500 rose 1 point, or 0.1%, and the Nasdaq composite gained 7 points, or 0.3%.

Treasurys give up gains as stocks recover - CNNMoney.com -- Treasurys gave up gains late Monday as stocks rebounded and the euro recovered from earlier losses.

What prices are doing: The benchmark 10-year note fell 8/32 to 100-4/32, pushing the yield up to 3.49% from 3.45% on Friday. The 30-year bond dropped 8/32 to 100-9/32 and yielded 4.36%, while the 2-year note edged down 1/32 to 100-12/32 with a 0.81% yield. The 5-year note fell to 101-14/32, yielding 2.2%. Bond prices and yields move in opposite directions.

Stocks finish lower - CNNMoney.com -- Stocks slumped Thursday, with the Dow losing 114 points, as investors stepped back after propelling markets 5% higher in just three days.

The dollar strengthened versus the euro, dragging down dollar-traded oil, gold prices and stocks. The Dow Jones industrial average lost 114 points, or 1%. The S&P 500 index lost 14 points, or 1.2% and the Nasdaq composite lost 30 points, or 1.3%.

Stocks rallied Monday and Wednesday as investors moved away from worries about Europe's debt crisis spreading and instead opted to scoop up issues hit in last week's massive sell off. Tuesday brought some selling, but it wasn't enough to take away from the week's gains. After such an advance, stocks were adrift through most of Thursday, before turning lower near the close.

Treasurys edge higher as stocks slump - CNNMoney.com -- Treasurys were mostly higher Thursday as stocks ended lower and the euro declined, boosting the appeal of safe haven bonds.

What prices are doing: The benchmark 10-year note was the one exception, falling 23/32 to 99-23/32 and yielding 3.54%. The 30-year bond rose 29/32 to 103-9/32, pushing the yield down to 4.43%. The 2-year note climbed 3/32 to 100-11/32 with a 0.83% yield. The 5-year note edged up to 101-6/32, yielding 2.25%. Bond prices and yields move in opposite directions.

Foreclosures plateau - finally. Repossessions soar - The foreclosure plague may have finally reached its peak in April 2010 -- but don't expect delinquency statistics to plummet anytime soon.

The total number of foreclosure filings -- notices of default, auction notices and bank repossessions -- fell by 9% from March to April, and 2% compared with April 2009, according to data released Thursday by RealtyTrac, the online marketer of foreclosed properties.

This is the first time that has happened in the history of the report, which goes back to January 2006.

But the number of homes repossessed during April is at an all-time high of 92,432. That is a 45% increase over April 2009. If repossessions continue at this pace, more than 1.1 million homes will be lost in 2010.

 Stocks gain as European fears fade - CNNMoney.com -- Stocks rallied Wednesday, with the Dow logging triple-digit gains, as European debt noise faded and investors focused on an improving domestic economy and corporate earnings.

The Dow Jones industrial average gained 149 points, or 1.4%, ending for the first time above last Wednesday's close, before turmoil swept through the market, culminating in last Thursday's flash crash. The S&P 500 index added 16 points, or 1.4%, and the Nasdaq composite rose 50 points, or 2.1%.

Treasurys fall as European woes ease - CNNMoney.com -- Treasurys declined Wednesday as signs of improvement in the euro zone overshadowed solid results from a government auction of 10-year notes.

What prices are doing: The benchmark 10-year note fell 14/32 to 100-13/32, pushing the yield up to 3.58% from 3.53% on Tuesday. The 30-year bond was down 3/32 to 102-9/32 with a 4.48% yield. The 2-year note edged down 2/32 to 100-8/32 with a 0.87% yield. The 5-year note dropped to 101, yielding 2.29%. Bond prices and yields move in opposite directions.