Archive for June, 2010

Stocks dive as second quarter ends - CNNMoney.com -- Stocks finished lower after a late-session retreat, as investors piled out of a downbeat quarter that ended with Wednesday's session.

The major indexes had teetered on either side of breakeven throughout the day as investors weighed a weak jobs report against an improved European bank outlook that provided earlier support.

But all three indexes turned down sharply as the session ended. The Dow Jones industrial average lost 96 points, or 1%, to finish at 9,774.02. The S&P 500 closed down 1% at 1,030.71 and the Nasdaq lost 1.2% to end at 2,109.24.

Treasury prices slip - CNNMoney.com -- Treasury prices ended mixed Wednesday as investor appetite for safe-haven assets faded a day after prices surged and the benchmark 10-year note's yield fell to a 14-month low below 3%.

What prices are doing: The 10-year note edged up 3/32 to 104-25/32 and its yield fell to to 2.94% from to 2.96% late Tuesday. The 2-year note shed 1/32 to 100-1/32 and its yield was 0.62%. The 2-year note's yield fell Tuesday to 0.59%, a record low. The 30-year bond rose 23/32 to 108-14/32 with a yield of 3.93%. Bond prices and yields move in opposite directions.

Foreclosures sell at 30% discount - Foreclosures accounted for a third of all sales -- and sold at a nearly 30% discount -- during the first three months of 2010.

According to a new report from RealtyTrac, the marketer of foreclosed properties, 31% of all sales were foreclosures. And homebuyers purchasing those properties paid a whopping 27% less, on average, compared to sales of non-distressed homes.

These foreclosure sales include properties sold in short sales or after a bank repossession, known as REOs in industry terms. It does not include transfers from borrowers to banks, as in a sheriff's auction.

Stocks end flat after choppy session - CNNMoney.com -- U.S. stocks recovered from deep losses Wednesday and finished a choppy session near the previous day's closing levels as investors considered mixed economic news and BP's agreement to establish a $20 billion escrow fund and cancel its quarterly dividend.

The Dow Jones industrial average closed up 5 points, or 0.1%. It was down by as much as 72 points earlier in the session, following a disappointing report on the housing market. Rebounding from an 8-point loss, the S&P 500 index finished less than 1 point down, or 0.1%, and the Nasdaq composite added half a point. The tech-heavy index was 16 points lower earlier.

Treasurys rise on renewed Spain fears - CNNMoney.com -- Treasurys turned higher Wednesday after renewed fears about Spain's debt pushed investors back to the safe-haven appeal of U.S. bonds.

What prices are doing: The benchmark 10-year note rose 7/32 to 101-27/32, with a lower 3.29% yield. The 30-year bond climbed 6/32 to 102-26/32, yielding 4.21%. The 5-year note rose 2/32 to 100-9/32 and yielded 2.067%, while the 2-year inched up 1/32 to 100, yielding 0.75%. Bond prices and yields move in opposite directions.

75% of modified home loans will redefault - Most borrowers who have had their mortgages modified through a government-sponsored program will redefault within 12 months, according to a report released Wednesday.

Between 65% and 75% of loans that are modified through the Home Affordable Modification Program but not backed by the federal government are likely to go bad, according to the report released by Fitch Ratings, a N.Y.-based credit-rating agency.

The main reason these borrowers continue to struggle is that HAMP does nothing to solve the rest of their debt problems, the report added.

Currently, according to the Fitch report, about half of prime borrowers who lose their homes now do so through foreclosure. The other 50% go through short sales, in which they sell their homes for less than what they owe the bank, or deed-in-lieu, a transaction where the bank takes back the property directly and forgives the outstanding balance.

Stocks stage big rally - CNNMoney.com -- Stocks surged Tuesday, pushing the Dow up over 200 points, as worries about Europe's debt woes hurting U.S. growth eased and the euro rallied.

The Dow Jones industrial average gained 214 points, or 2.1%. The S&P 500 index gained 26 points, or 2.4% and the Nasdaq composite gained 62 points or 2.8%.

Stocks gained from the get go Tuesday, as strength in European markets and a rally in the euro reassured investors worried about how global growth will impact the U.S. Solid demand for government debt auctioned in Spain, Belgium and Ireland helped take the edge off euro zone growth worries.

Treasurys fall as euro strengthens - CNNMoney.com -- Treasurys turned lower Tuesday as demand for the safe-haven assets diminished on easing fears about Europe's debt crisis and a strengthening euro.

What prices are doing: The benchmark 10-year note slipped 15/32 to 101-20/32 in trade. Its yield rose to 3.31% from 3.26% late Monday. The 30-year bond lost 23/32 to 102-19/32, yielding 4.22%. The 5-year note decreased 7/32 to 100-7/32 and yielded 2.09%, while the 2-year fell 2/32 to 99, yielding 0.77%. Bond prices and yields move in opposite directions.

Stocks erase gains on Greece - CNNMoney.com -- Stocks gave up gains by the close Monday after Moody's downgraded Greece's debt rating, reminding investors that Europe's economic woes aren't going away anytime soon.

The Dow Jones industrial average lost 20 points, or 0.2%, the S&P 500 index lost 2 points, or 0.2%, and the Nasdaq composite ended little changed.

Stocks gained soundly in the morning after a report showed a big jump in industrial output in Europe, boosting the euro and reassuring investors about the global recovery. But the advance lost steam in the early afternoon on news that Moody's cut its debt rating on Greece to "junk status."

CNNMoney.com -- Treasurys edged lower Monday as upbeat economic data from the euro zone boosted the euro, limiting the demand for safe haven assets.

What prices are doing: The benchmark 10-year note fell 8/32 to 102, pushing the yield up to 3.26% on Monday from 3.22% late Friday. The 30-year bond lost 21/32 to 103-6/32, yielding 4.19%. The 5-year note fell 3/32 to 100-13/32 and yielded 2.05%, while the 2-year was flat at 100-1/32, yielding 0.74%. Bond prices and yields move in opposite directions.

Big boost for stocks , Dow gains 273 - CNNMoney.com -- A stock rally gained momentum Thursday, with the major indexes hitting highs for the day in the last minutes of trade, as concerns over Europe's debt crisis and its impact on the global recovery were calmed by a sharp boost in Chinese exports and a strengthening euro.

The Dow Jones industrial average finished up 273 points, or 2.8%. The Dow closed above 10,000 for the first time this week. The S&P 500 index gained 31 points, nearly 3%. That was thanks to a bounce in energy shares that dragged on the market during the previous session. The Nasdaq composite rose 60 points, or 2.8%.

Treasurys lower as risk appetite returns - CNNMoney.com -- Treasury prices fell Thursday as risk appetite returned to the markets after reassuring remarks out of Europe.

What prices are doing: The benchmark 10-year note fell 1-5/32 to 101-19/32, pushing the yield up to 3.31% on Thursday from 3.18% late Wednesday. The 30-year bond dropped 2- 5/32 to 102-11/32, yielding 4.24%. The 5-year note inched 19/32 lower to 100-4/32 and yielded 2.10%, while the 2-year note was down 4/32 to 99-30/32, yielding 0.78%. Bond prices and yields move in opposite directions.

Homebuyers could get more time for tax credit - First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled Thursday makes it into law.

As it stands now, homebuyers must have signed contracts by April 30 and must close the deal by June 30. They could be eligible for an $8,000 tax credit if they are first-time buyers or a $6,500 credit if they owned and lived in their previous home for five of the last eight years.

The closing deadline, however, could be pushed back to Sept. 30 under an amendment offered by Senate Majority Leader Harry Reid, D-Nev., Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn. The senators said they want to make sure banks have time to process the transactions -- especially short-sales, which is a more involved process.

Stocks slump as energy shares tumble - CNNMoney.com -- Stocks finished in the red Wednesday, failing to sustain earlier gain in the last hour of trade, as investors ditched energy shares amid ongoing concerns about BP's ability to survive the Gulf oil spill.

The Dow Jones industrial average fell 41 points, or 0.4%. Earlier, the index surged 125 points and broke through the 10,000 level for the first time this week, reaching 10,065. The S&P 500 index dipped 6 points. The Nasdaq composite lost 12 points, or 0.5%. Both indexes were up more than 1% earlier in the day.

Treasurys rally as stocks slump - CNNMoney.com -- Treasury prices were mostly higher Wednesday as stocks took a hit and investors braced for upcoming auctions.

What prices are doing: The benchmark 10-year note rose 2/32 to 102-23/32, pushing the yield down to 3.18% on Wednesday from 3.19% late Tuesday. But the 30-year bond lost 1/32 to 104-15/32, yielding 4.11%. The 5-year note inched 1/32 higher to 100-23/32 and yielded 1.97%, while the 2-year note was up 1/32 lower to 100-1/32, yielding 0.73%. Bond prices and yields move in opposite directions.

Dow in triple-digit comeback - CNNMoney.com -- Stocks staged a comeback late Tuesday, with the Dow and S&P 500 rallying near the end of a choppy session, following a surge in commodity and financial shares.

The Dow Jones industrial average gained 123 points, or 1.3%, and the S&P 500 index rallied 11 points, or 1.1%. Both ended the previous session at the lowest point since Nov. 4. The tech-fueled Nasdaq composite erased bigger afternoon losses to close down by 3 points, or 0.2%, which nevertheless was the lowest close since Feb. 10.

Treasurys dip ahead of auctions - CNNMoney.com -- Treasury prices slipped Tuesday as investors braced for upcoming auctions and stocks rebounded.

What prices are doing: The benchmark 10-year note fell 11/32 to 102-22/32, pushing the yield up to 3.19% on Tuesday from 3.15% on Monday. The 30-year bond lost 16/32 to 104-17/32, yielding 4.1%. The 5-year note fell 7/32 to 100-22/32 and yielded 1.98%, while the 2-year note edged down 2/32 to 100-1/32, yielding 0.75%. Bond prices and yields move in opposite directions.

The last time the yield on the benchmark U.S. 10-year Treasury was below 3% was in April of last year, arguably the crescendo of investor fears about the state of the global economy. The yield on the 10-year is getting perilously close to 3% again. At one point Tuesday morning, it stood at around 3.15%, down from about 3.7% as recently as the beginning of May.

Dow at 7-month lows - CNNMoney.com -- Stocks slumped Monday, with the Dow and S&P 500 ending at 7-month lows, after the euro hit a fresh four-year low, adding to worries about the global economy.

The Dow Jones industrial average lost 115 points, or 1.2%, closing at the lowest point since Nov. 4.  The S&P 500 index lost 14 points, or 1.4%, and closed at its lowest point since Nov. 4. The Nasdaq composite fell 45 points, or 2%, and closed at its lowest point since Feb. 11.

Treasurys rise as stocks slump - CNNMoney.com -- Treasury prices rose Monday in choppy trading as stocks plummeted and investors braced for $70 billion in debt sales.

What prices are doing: The benchmark 10-year note added 16/32 to 103, pushing the yield down to 3.15% on Thursday from 3.21% on Friday. The 30-year bond climbed 29/32 to 105-3/32, yielding 4.08%. The 5-year note rose 8/32 to 100-29/32 and yielded 1.9%, while the 2-year note edged up less than 1/32 to 100-2/32, yielding 0.73%. Bond prices and yields move in opposite directions.

Foreclosure tricks cost Countrywide $108 million - Mortgage lender Countrywide Home Loans Inc. agreed to pay $108 million Monday to settle government claims that it charged homeowners facing foreclosure inflated service fees.

The settlement with the Federal Trade Commission, one of the largest imposed in an agency case, will reimburse overcharged borrowers whose loans were serviced by Countrywide before it was acquired by Bank of America in July 2008.

According to the FTC, Countrywide ordered homeowners that fell behind on their mortgages to pay for default-related services like property inspections and lawn mowing to protect the lender's interest in the property.

While that's typical under most mortgage contracts, the FTC alleged, Countrywide created subsidiaries that marked up prices for the services by 100% or more in some cases.

Stocks stage recovery - CNNMoney.com -- Stocks managed gains Thursday following a choppy session in which investors mulled mixed economic news ahead of Friday's big monthly jobs report.

The Dow Jones industrial average added a few points. The S&P 500 index gained 4 points, or 0.4%. The Nasdaq composite rallied 22 points, or 1%.

Stocks gained in the morning, turned mixed in the afternoon as the euro retreated and then staged another rally near the close.

Treasurys lower ahead of key jobs report - CNNMoney.com -- Treasurys were lower Thursday as stocks inched higher and investors braced for the government's closely watched report on employment.

What prices are doing: The benchmark 10-year note fell 6/32 to 101-4/32, pushing the yield up to 3.36%, from 3.34% on Wednesday. The 30-year bond lost 17/32 to 101-24/32 and yielding 4.27%. The 5-year note edged lower by 2/32 to 99-28/32, yielding 2.15%, while the 2-year note was unchanged at 99-28/32, yielding 0.81%. Bond prices and yields move in opposite directions.

Stocks rally 2% on energy boost - CNNMoney.com -- U.S. stocks rallied on Wednesday, fueled by a rebounding energy sector, as investors regained confidence following the previous session's huge sell-off.

The Dow Jones industrial average rose 225.5 points, or 2.3%. The S&P 500 index added 28 points, or 2.6%, and the Nasdaq composite rallied 59 points, or 2.6%.

Pending Home Sales Higher Into Tax Credit Deadline. May Data Matters Most -  The National Association of Realtors released the Pending Home Sales Index today.

The Pending Home Sales Index, a forward-looking indicator, rose 6.0 percent to 110.9 based on contracts signed in April, from an upwardly revised 104.6 in March, and is 22.4 percent higher than April 2009 when it was 90.6. That follows gains of 7.1 percent in March and 8.3 percent in February.

Pending home sales are at the highest level since last October when the index reached 112.4 and first-time buyers were rushing to beat the initial deadline for the tax credit.