Daily Financial News - Mortgage | Real Estate | Stock Market
Dow at new 18-month highs - CNNMoney.com -- Stocks gained Monday, pushing the Dow to its highest point in a year-and-a-half, after a report showing a rise in consumer spending added to bets about the strength of the economic recovery.
The Dow Jones industrial average added 45 points, or 0.4%, ending at 10,895.86, the highest point since Sept. 26, 2008, when it closed at 11,143.13. The S&P 500 index gained 7 points, or 0.6%. The Nasdaq composite rose 9 points, or 0.4%.
The first quarter ends Wednesday and currently the Dow is up 4%, the S&P 500 is up 4.6% and the Nasdaq is up 5.6%. When stocks have had a positive quarter, end-of-quarter machinations tend to be positive, as managers look to play catch up.
Treasurys fall on lower demand - CNNMoney.com -- Treasury prices continued to fall Monday following tepid auctions last week.
What prices are doing: The benchmark 10-year note fell 17/32 to 97-21/32 and its yield rose to 3.87%. The 30-year bond fell 27/32 to 97-6/32 with a yield of 4.78%. Bond prices and yields move in opposite directions. The 5-year note fell 13/32 to 99-5/32 with a yield of 2.61%. The 2-year note fell 20/32 to 99-9/32 with a yield of 1.06%.
What's moving the market: Consumer spending and income numbers released by the Commerce Department Monday came in as expected, and weren't major market movers. Personal spending rose for a fifth straight month in February, while personal income was virtually unchanged. Stocks posted modest gains in wake of the news.
Meanwhile, Treasury prices continued to fall, driving yields higher, after government auctions of $118 billion in notes last week saw lackluster demand. Given the flood of Treasurys that the government has issued over the last several months to fund U.S. debt, analysts have been predicting that investors will eventually begin demanding higher yields.
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