NYSE Dow Jones finished today at:

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

For the week, the Dow fell 3.6 percent, the S&P 500 index lost 5 percent and the Nasdaq slid 3.4 percent.

On Wall Street, not so bad is no longer good enough.

Stocks extended the week's losses Friday, further chilling the market's spring rally. Traders who last week sent stocks higher on economic news that wasn't as bad as expected are now selling. And analysts say it will take more upbeat data to restart the rally that swept major stock indicators up more than 30 percent from 12-year lows in early March.

The Labor Department said Friday that consumer prices in April were flat, as economists predicted. Manufacturing activity in the New York area and industrial production contracted less than economists expected. And a Reuters/University of Michigan index of consumer sentiment rose to an eight-month high in May, a possible harbinger of improved consumer spending.

The NYSE DOW closed HIGHER -62.68 points -0.75% on Friday May 15
Sym Last........ ........Change..........
Dow 8,268.64 -62.68 -0.75%
Nasdaq 1,680.14 -9.07 -0.54%
S&P 500 882.88 -10.19 -1.14%
30-yr Bond 4.0830% +0.0170

NYSE Volume 6,497,005,500 (prior day 7,381,978,000)
Nasdaq Volume 2,124,397,500 (prior day 2,224,581,500)

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,348.11 -14.47 -0.33%
DAX 4,737.50 -0.97 -0.02%
CAC 40 3,169.05 +12.76 +0.40%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,265.02 +171.29 +1.88%
Hang Seng 16,790.70 +249.01 +1.51%
Straits Times 2,139.78 +17.67 +0.83%

http://finance.yahoo.com/news/Stock...68331.html?sec=topStories&pos=2&asset=&ccode=

Stocks extend week's losses after 2-month rally

Stocks slide as economic data top forecasts but leave traders unimpressed after 2-month rally
Tim Paradis, AP Business Writer
On Friday May 15, 2009, 5:43 pm EDT

NEW YORK (AP) -- On Wall Street, not so bad is no longer good enough.

Stocks extended the week's losses Friday, further chilling the market's spring rally. Traders who last week sent stocks higher on economic news that wasn't as bad as expected are now selling. And analysts say it will take more upbeat data to restart the rally that swept major stock indicators up more than 30 percent from 12-year lows in early March.

The Labor Department said Friday that consumer prices in April were flat, as economists predicted. Manufacturing activity in the New York area and industrial production contracted less than economists expected. And a Reuters/University of Michigan index of consumer sentiment rose to an eight-month high in May, a possible harbinger of improved consumer spending.

But even with this handful of silver-lining economic data, traders found little incentive to buy. Instead, a drop in the price of oil hit energy companies, while financial stocks slid on worries that the economic recovery could be further off than traders had been betting in recent months.

"This market is tired," said Joe Saluzzi, co-head of equity trading at Themis Trading LLC.

Wall Street's rally has also hit a lull now that the government's stress tests of banks are done, earnings reports are winding down and the first wave of April economic data has been released. Traders aren't clear what the next catalyst might be to pump the market higher -- or whether the gains might erode.

"We've gotten through the panic point, and what will get us to the next level is seeing the economy actually grow. It'll happen, but it's a matter of when," said Douglas Kreps, managing director at Fort Pitt Capital Group.

The Dow Jones industrial average fell 62.68, or 0.8 percent, to 8,268.64. The broader Standard & Poor's 500 index fell 10.19, or 1.1 percent, to 882.88, and the Nasdaq composite index fell 9.07, or 0.5 percent, to 1,680.14.

For the week, the Dow fell 3.6 percent, the S&P 500 index lost 5 percent and the Nasdaq slid 3.4 percent.

With the S&P 500 index up 30.5 percent from the lows of two months ago, many traders are finding it a safer bet to cash in some of their gains. About two stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 5.3 billion shares, compared with 6.8 billion shares traded Thursday.

Not all the news of the day fit with the idea that the economy is sewing up its holes.

The Treasury Department agreed to extend billions in federal bailout funds to six major life insurers. The move was positive because it means the insurers will get more capital, but negative because it implied that the insurers' problems posed a serious risk to the financial system.

Among the companies, the Hartford Financial Services Group Inc. said it is eligible for $3.4 billion from the Troubled Asset Relief Program, or TARP, while Lincoln National Corp. said it has been initially approved for a $2.5 billion injection.

Hartford fell 15 cents to $14.60, while Lincoln National fell 12 cents to $16.12.

Investors also remained concerned about the auto industry. General Motors Corp., as expected, began notifying 1,100 U.S. dealers Friday that their franchise agreements would not be renewed. GM said the closures -- which come a day after Chrysler LLC cut ties with a quarter of its dealers -- must be made as part of its government-ordered restructuring plan. GM fell 6 cents, or 5.2 percent, to $1.09.

Energy stocks weighed on the market as oil slid $2.28 to settle at $56.34 a barrel on the New York Mercantile Exchange. Schlumberger Ltd. fell $1.88, or 3.5 percent, to $52.05, while Devon Energy Corp. fell $3.51, or 5.7 percent, to $58.50.

FirstEnergy Corp. fell $3.87, or 9.6 percent, to $36.47 after the regional electric utility's energy supply and pricing auction in Ohio came in below analyst expectations. The stock traded as low as $35.26, a level not seen since December 2003.

The market hit its highest levels of the rally last Friday as investors bought when news, including April employment figures, wasn't as grim as feared. This week, however, the government surprised Wall Street with its report that retail sales fell in April.

Dreyfus Chief Investment Officer Phil Maisano contends the break makes sense. He said the market is fairly valued where it stands and is now factoring in a severe recession instead of a depression.

"We're clearly not going to have any form of a V-shaped recovery," Maisano said, referring to the pace of the rebound from the economy's tumble in the fall. "It will be a longer slog."

Even with the government's bank rescue and economic stimulus spending, Maisano expects the economy will still have a tough recovery.

"It was virtually a tourniquet. It stopped the bleeding but it doesn't have much effect on the healing at the moment," he said.

Next week, investors will get data on housing sales on Monday, on housing construction a day later and on regional manufacturing on Thursday. The reports could help drive the market but many analysts say more clear signs of an economic recovery, not just stabilizing, will be what is needed to propel Wall Street.

In other trading Friday, the Russell 2000 index of smaller companies fell 4.87, or 1 percent, to 475.84.

Bond prices fell after the inflation data. The yield on the 10-year Treasury note rose to 3.14 percent from 3.09 percent late Thursday.

The dollar rose against most other major currencies, while gold prices rose.

Overseas, Britain's FTSE 100 fell 0.3 percent, Germany's DAX index slipped less than 0.1 percent, and France's CAC-40 rose 0.4 percent. Japan's Nikkei stock average rose 1.9 percent.

The Dow Jones industrial average closed the week down 306.01, or 3.6 percent, at 8,268.64. The Standard & Poor's 500 index fell 46.35, or 5 percent, to 882.88. The Nasdaq composite index fell 58.86, or 3.4 percent, to 1,680.14.

The Russell 2000 index, which tracks the performance of small company stocks, fell 35.98, or 7 percent, for the week to 475.84.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 9,004.41, down 504.67, or 5.3 percent, for the week. A year ago, the index was at 14,404.22.

579

 

[sandybeachs]

fairly weak result today.

seems as though investors were taking in a few things that had happened during the week which weighed heavily on Fridays result

Equities took a breather this past week, retreating after two weeks of advances and a gain in sentiment from getting past stress tests for major banks. Several factors came into play. First, investors began to worry about increased supply as many firms – especially financials - are issuing new stock to raise capital. In fact, major banks raised about $30 billion in new capital this past week. Considerable profit taking took hold on Monday, also, after the prior Friday’s stress test related gains.

The biggest decline in stocks, however, was on Wednesday after the Commerce Department announced an unexpected drop in retail sales, calling into question how much the recession is easing. Equities picked and chose which parts of Thursday's jobless claims report to focus on. Although continuing claims surged and hit another record high, equities took heart that initial claims rose only moderately which boosted stocks. But by Friday, markets were soaking in the impact of Chrysler dropping 789 dealerships nationwide and GM announcing it will not renew contracts with some 1,100 dealerships in 2010. Equities, in turn, dipped on the final day of the week.

above from: 2009 Economic Calendar

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Reassuring news about housing and banking on Monday convinced investors to return to the stock market.

The Dow Jones industrial average shot up 235 points, making up three-quarters of last week's losses. All the major indexes rose about 3 percent.

A better-than-expected profit report from Lowe's Cos., an uptick in homebuilder sentiment and positive comments from analysts about U.S. banks revived investors' confidence in an economic rebound. Stocks fell sharply last week on worries that a recovery might be further off than hoped, interrupting a rally that has left the Standard & Poor's 500 index up 34.5 percent since March 9.


The NYSE DOW closed HIGHER +235.44 points +2.85% on Monday May 18
Sym Last........ ........Change..........
Dow 8,504.08 +235.44 +2.85%
Nasdaq 1,732.36 +52.22 +3.11%
S&P 500 909.71 +26.83 +3.04%
30-yr Bond 4.1760% +0.0930

NYSE Volume 6,794,831,000 (prior day 6,497,005,500)
Nasdaq Volume 2,037,372,620 (prior day 2,124,397,500)


NYSE Volume 6,497,005,500 (prior day 7,381,978,000)
Nasdaq Volume 2,124,397,500 (prior day 2,224,581,500)

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,446.45 +98.34 +2.26%
DAX 4,851.96 +114.46 +2.42%
CAC 40 3,245.39 +76.34 +2.41%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,038.69 0.00 0.00% Japan's Nikkei stock average fell 2.4 percent.
Hang Seng 17,022.91 0.00 0.00%
Straits Times 2,176.98 0.00 0.00%

http://finance.yahoo.com/news/Stock...05.html?sec=topStories&pos=main&asset=&ccode=

Stocks jump on renewed optimism on housing, banks

Wall Street rises as Lowe's profit beats forecast, analysts issue upbeat bank comments
Sara Lepro and Madlen Read, AP Business Writers
On Monday May 18, 2009, 5:41 pm EDT

NEW YORK (AP) -- Reassuring news about housing and banking on Monday convinced investors to return to the stock market.

The Dow Jones industrial average shot up 235 points, making up three-quarters of last week's losses. All the major indexes rose about 3 percent.

A better-than-expected profit report from Lowe's Cos., an uptick in homebuilder sentiment and positive comments from analysts about U.S. banks revived investors' confidence in an economic rebound. Stocks fell sharply last week on worries that a recovery might be further off than hoped, interrupting a rally that has left the Standard & Poor's 500 index up 34.5 percent since March 9.

Steep drops in home values have been at the heart of the economy's troubles, slicing into consumers' wealth and saddling banks with huge losses. Analysts believe that stability in the housing and banking industries are imperative for the economy to rebound.

"There's a realization that things are going to get better," said James Cox, managing partner at Harris Financial Group. "That's the main theme of the market over the last couple of weeks."

Despite Monday's bounce, however, the market is expected to remain volatile as investors look for signs that the economy is actually recovering -- not just slowing its descent.

At the start of the market's upswing in March, signs of stabilization were enough to encourage investors to buy stocks. Linda Duessel, equity market strategist at Federated Investors, said the rally has been driven by "less bad" information.

"Probably, we'll get bored with that as the months progress," Duessel said. "We'll need something better to move the market."

The Dow rose 235.44, or 2.9 percent, to 8,504.08. That was the biggest point gain since a 246-point jump on April 9.

The S&P 500 index rose 26.83, or 3 percent, to 909.71, putting it back into positive territory for the year. The Nasdaq composite index rose 52.22, or 3.1 percent, to 1,732.36.

Government bond prices fell, pushing the yield on the 10-year Treasury note -- a widely used benchmark for home mortgages and other loans -- up to 3.24 percent from 3.14 percent late Friday.

Last week, the Dow slid 3.6 percent, the S&P 500 index lost 5 percent and the Nasdaq fell 3.4 percent as a weak retail sales report and an uptick in job losses had investors questioning the merits of a two-month rally off of 12-year lows.

But U.S. and European trading started on strong footing Monday after India's stock market rose an unprecedented 17 percent. Investors viewed the country's election results as paving the way for economic reforms.

U.S. stocks got a boost when Lowe's Cos., the nation's second-largest home improvement chain, posted earnings that easily beat Wall Street's forecasts and raised its full-year profit outlook.

Lowe's closed up $1.49, or 8.1 percent, at $19.94.

Buying accelerated later in the day when the National Association of Home Builders said its housing market index rose for the second month in a row in May. The report reflected growing optimism among builders, an encouraging sign that housing activity might be picking up.

Homebuilding stocks soared on the news. Beazer Homes USA Inc. rose 47 cents, or 20 percent, to $2.81, while Lennar Corp. rose $1.21, or 13.7 percent, to $10.02.

Financial stocks also surged after a spate of analysts issued promising outlooks for the troubled banking industry.

Rochdale Securities analyst Richard Bove noted the potential for "explosive earnings growth and unusually strong stock price performance" for banks as the economy recovers. Goldman Sachs raised its rating on Bank of America Corp. to "Buy" on expectations for solid earnings in the second quarter. And BMO Capital Markets upgraded its view of the banking industry, anticipating that profits will start to rebound in coming quarters.

Bank of America rose $1.06, or 9.9 percent, to $11.73.

State Street Corp. was another big gainer after it became the latest bank to turn to the capital markets to raise money. The commercial bank said it expects to raise about $1.45 billion through a stock offering as part of an effort to repay a $2 billion government loan that came as part of the financial rescue program last fall.

State Street rose $3.28, or 8.5 percent, to $41.79.

Analysts say the ability of banks to raise cash is a welcome sign of strength, even if the introduction of added shares makes those already in circulation worth somewhat less.

"The banks are stable," Cox said. "We're not going to see any of the large banks go down. And now that we have stabilization in the banking system, we can move forward."

In other trading, the Russell 2000 index of smaller companies rose 18.95, or 4 percent, to 494.79.

About nine stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 5.5 billion shares, up from 5.3 billion shares Friday.

Energy stocks were lifted by a sharp gain in oil prices. Crude rose $2.69 to $59.03 a barrel as investors made bets that demand would be strong throughout the summer driving season, which kicks off this weekend with the Memorial Day holiday.

The dollar fell against other major currencies. Gold prices also fell.

Stocks overseas were mixed following weak corporate earnings reports in Asia. Japan's Nikkei stock average fell 2.4 percent. Britain's FTSE 100 jumped 2.3 percent, Germany's DAX index rose 2.4 percent, and France's CAC-40 rose 2.4 percent.

750

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Yesterday was roller coaster stuff; check DOW chart!!

A record low in housing construction has investors doubting the economy again.

Stocks closed narrowly mixed in light trading Tuesday as the surprise drop in construction and a cautious outlook from retailer Home Depot Inc. led energy and utility stocks to pare gains.

Construction of homes and apartments fell 12.8 percent last month to the lowest pace on records going back a half-century, the Commerce Department said. Analysts had expected housing starts to rise.

The NYSE DOW closed LOWER -29.23 points -0.34% on Tuesday May 19
Sym Last........ ........Change..........
Dow 8,474.85 -29.23 -0.34%
Nasdaq 1,734.54 +2.18 +0.13%
S&P 500 908.13 -1.58 -0.17%
30-yr Bond 4.2070% +0.0310

NYSE Volume 6,797,218,000 (prior day 6,794,831,000)
Nasdaq Volume 2,135,664,000 (prior day 2,037,372,620)


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,482.25 +35.80 +0.81%
DAX 4,959.62 +107.66 +2.22%
CAC 40 3,274.96 +29.57 +0.91%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,290.29 0.00 0.00% Japan's Nikkei stock average jumped 2.8 percent
Hang Seng 17,544.03 0.00 0.00%
Straits Times 2,260.36 0.00 0.00%

http://finance.yahoo.com/news/Surprise-drop-in-housing-data-apf-15297286.html

Surprise drop in housing data checks market's rise

Stocks narrowly mixed after drop in housing data, cautious report from Home Depot

Tim Paradis and Madlen Read, AP Business Writers
On Tuesday May 19, 2009, 6:05 pm EDT

NEW YORK (AP) -- A record low in housing construction has investors doubting the economy again.

Stocks closed narrowly mixed in light trading Tuesday as the surprise drop in construction and a cautious outlook from retailer Home Depot Inc. led energy and utility stocks to pare gains.

Construction of homes and apartments fell 12.8 percent last month to the lowest pace on records going back a half-century, the Commerce Department said. Analysts had expected housing starts to rise.

The report did contain some positive signs, including a rebound in single-family construction that partly offset a drop in apartment construction. And a sharp pullback in construction is necessary to rid the housing market of excess inventory, many analysts pointed out.

Wall Street has been trying to get a read on the housing market for months as investors look for solid signs the economy is recovering. Stocks surged more than 3 percent on May 4 following unexpected increases in pending home sales and construction spending. But a big inventory of unsold homes and record foreclosures are swallowing much of the demand, making it hard for prices to stabilize.

"The housing number on the surface was horrible," said Alan Valdes, vice president at Hilliard Lyons in New York. But he said the whittling away of inventory will help prices eventually.

Although the construction figure was seen as a setback, it also did not set off heavy selling. Valdes noted that the light trading volume ahead of the long Memorial Day weekend meant the market was likely to drift barring any news that could change investors' mood.

The Dow Jones industrial average fell 29.23, or 0.3 percent, to 8,474.85.

Home Depot was the biggest loser in the Dow, falling $1.39, or 5.3 percent, to $24.63 after saying its markets are still under pressure. Profits at the nation's largest home improvement retailer climbed 44 percent, better than expected, as the company booked fewer charges.

Broader stock indicators were mixed. The Standard & Poor's 500 index fell 1.58, or 0.2 percent, to 908.13, while the Nasdaq composite index rose 2.18, or 0.1 percent, to 1,734.54.

About three stocks rose for every two that fell on the New York Stock Exchange, where consolidated volume came to 5.44 billion shares, down from 5.49 billion on Monday.

"It's hard enough to get going after you've been up 30 percent in the S&P 500 in 10 weeks," said Hugh Johnson, chief investment officer of Johnson Illington Advisors. "When you have news that's as deflating as this, it gets nearly impossible."

On Monday, encouraging news from Home Depot rival Lowe's Cos. and an improving outlook for banks had lifted the S&P 500 index back into a gain for the year. It's still up marginally for 2009 after Tuesday's dip.

In a positive sign for Wall Street, one measure of the market's uneasiness fell again after sliding 8.7 percent Monday. The Chicago Board Options Exchange Volatility Index, or the VIX, fell below 30 on Tuesday for the first time since September. It hit a record 89.5 in October at the height of the financial market meltdown. The historical average is 18-20, well below Tuesday's level of 28.8, but the decline signals that investors are more confident about the stock market's direction.

David Kelly, chief market strategist at JPMorgan Funds, said the drop in expectations for volatility and the market's relatively calm response to bad economic news in light trading is a departure from only months ago, when stocks likely would have tumbled sharply.

"The market was assuming the economy would never come around. Even though we are waiting for a turnaround, this certainly is indicative of an economy that is stabilizing," he said.

Kelly added that every day without another proverbial shoe dropping helps traders build confidence.

"Every shoeless day is a good day," he said.

Another sign that the rally has staying power is the strength in industries such as basic materials, industrials and technology, Johnson said. These are the types of companies that usually perform well in a market comeback.

"It's not just that the stock market has been going up -- it's that the right sectors have been leading the performance parade," Johnson said.

Rising prices for oil and materials lifted energy and commodity stocks. Rising prices are often seen as a sign that investors are expecting economic activity will increase and drive demand for raw materials. Peabody Energy Corp. rose 89 cents, or 2.9 percent, to $31.65, while the utility PPL Corp. rose $1.18, or 3.8 percent, to $31.94.

Light, sweet crude rose 62 cents to $59.65 a barrel on the New York Mercantile Exchange.

Credit card companies fell after the Senate voted to prevent them from arbitrarily raising consumers' interest rate and charging many of the high fees that have become customary. American Express Co. fell $1.34, or 5.1 percent, to $24.79, while Capital One Financial Corp. fell $1.16, or 4.5 percent, to $24.90.

In other trading, the Russell 2000 index of smaller companies fell 1.53, or 0.3 percent, to 493.26.

Bond prices were mixed. The yield on the 10-year Treasury note was unchanged at 3.24 percent.

The dollar fell against other major currencies, while gold prices rose modestly.

Overseas, Britain's FTSE 100 rose 0.8 percent, Germany's DAX index rose 2.2 percent, and France's CAC-40 rose 0.9 percent. Japan's Nikkei stock average jumped 2.8 percent

821

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The last hour again!!

Bank stocks led the market lower after the Federal Reserve cut its economic forecast and said unemployment could get worse.

The Fed's prediction Wednesday that the jobless rate could approach 9.6 percent -- worse than its previous forecast of 8.8 percent -- was especially ominous for banks since that data is a component of the government's recent "stress tests" designed to determine how healthy banks are.

The midafternoon release of minutes from the Fed's meeting deflated an earlier rally in financial shares, which had been rising after Bank of America Corp. said it raised $13.5 billion in a share offering. That put the bank more than halfway toward raising the capital it needed to under the "stress tests," whose results were announced two weeks ago.


The NYSE DOW closed LOWER -52.81 points -0.62% on Wednesday May 20
Sym Last........ ........Change..........
Dow 8,422.04 -52.81 -0.62%
Nasdaq 1,727.84 -6.70 -0.39%
S&P 500 903.47 -4.66 -0.51%
30-yr Bond 4.1600% -0.0470

NYSE Volume 8,437,542,000 (prior day 6,797,218,000)
Nasdaq Volume 2,327,366,250 (prior day 2,135,664,000)


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,468.41 -13.84 -0.31%
DAX 5,038.94 +79.32 +1.60%
CAC 40 3,303.37 +28.41 +0.87%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,344.64 +54.35 0.59%
Hang Seng 17,475.84 -68.19 -0.39%
Straits Times 2,269.24 +8.88 0.39%

http://finance.yahoo.com/news/Stock...11123.html?sec=topStories&pos=2&asset=&ccode=

Stocks erase gains after Fed reduces 2009 outlook

Banks lead stock market lower after the Fed cuts its economic forecast for rest of the year

Sara Lepro and Tim Paradis, AP Business Writer
On Wednesday May 20, 2009, 6:32 pm EDT

NEW YORK (AP) -- Bank stocks led the market lower after the Federal Reserve cut its economic forecast and said unemployment could get worse.

The Fed's prediction Wednesday that the jobless rate could approach 9.6 percent -- worse than its previous forecast of 8.8 percent -- was especially ominous for banks since that data is a component of the government's recent "stress tests" designed to determine how healthy banks are.

The midafternoon release of minutes from the Fed's meeting deflated an earlier rally in financial shares, which had been rising after Bank of America Corp. said it raised $13.5 billion in a share offering. That put the bank more than halfway toward raising the capital it needed to under the "stress tests," whose results were announced two weeks ago.

The sharp swings in financial shares has been a typical market pattern in recent weeks as investors rush into and out of bank stocks based on the latest thinking about how well the industry will endure the economic slump and a credit crisis that brought down three Wall Street investment banks.

In other parts of the market, energy stocks surged as oil topped $62 a barrel for the first time since November, and Treasury prices rose smartly after the Fed said it might increase its purchases of government debt.

Carl Beck, a partner at Harris Financial Group, noted that the Fed's new estimate for unemployment is much closer to the "worst-case scenario" figure the government used during its tests on the 19 largest U.S. banks.

"Does that mean there is a worse case scenario than that?" Beck said. "I don't think after what we've seen over the last six to eight months that you can discount anything at this point."

The Dow Jones industrials fell 52.81, or 0.6 percent, to 8,422.04. The blue chips had been up as much as 117 points in early trading. The Standard & Poor's 500 index slipped 4.66, or 0.5 percent, to 903.47, and the Nasdaq composite index fell 6.70, or 0.4 percent, to 1,727.84.

Bank of America was the only major bank to get through the downdraft in financial shares, ending up 24 cents, or 2.1 percent, at $11.49.

Regional bank Regions Financial Corp. fell 35 cents, or 6.7 percent, to $4.89 after announcing a $1.25 billion capital raise in order to meet the government's demands to shore up its balance sheet.

Analysts are welcoming the capital raises from banks as a sign of stability and a vote of confidence in the financial system, but they fear banks are still a long way from scrubbing all the stains off their balance sheets.

"There is some uncertainty about the financials as a sector and people are a little bit leery about getting too involved with them," said Doreen Mogavero, president of Mogavero, Lee & Co. in New York.

Energy stocks posted some of the day's biggest gains. Marathon Oil Corp. rose 68 cents, or 2.3 percent, to $30.38, while Schlumberger Ltd. rose $1.03 to $55.04.

Stocks ended mixed Tuesday after a record low in housing construction undermined optimism that had been building in recent weeks about the beleaguered housing market, which had been beginning to show some early signs of easing a three-year slide.

Despite back-to-back dips on Tuesday and Wednesday, the S&P 500 index is still up 33.5 percent since March 9, and about even with the beginning of 2009. Many market-watchers think stocks could be due for another fall after their steep ascent over the past two months.

"Just as markets sometimes go too far on the negative in the short-term, they can go too far in the positive," said Subodh Kumar, an independent investment strategist in Toronto. "I think right now the markets will have trouble keeping momentum."

In other trading, the Russell 2000 index of smaller companies fell 3.91, or 0.8 percent, to 489.35.

Advancing issues narrowly outnumbered decliners on the New York Stock Exchange, where volume came to 1.65 billion shares.

Bond prices jumped after the Fed minutes indicated the central bank could buy more government debt. That pushed the yield on the 10-year Treasury note, a widely used benchmark for home mortgages and other kinds of loans, down to 3.19 percent from 3.25 percent late Tuesday.

The dollar plunged against the euro and the British pound, while gold prices rose.

Overseas, Japan's Nikkei stock average rose 0.6 percent. Britain's FTSE 100 fell 0.3 percent, Germany's DAX index rose 1.6 percent, and France's CAC-40 rose 0.8 percent.

865

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Another bad signal from the job market and concern over a possible downgrade of British government debt sent stocks sharply lower Thursday.

Major stock indicators slid more than 1.5 percent, cutting nearly 130 points off the Dow Jones industrial average, after continuing claims for unemployment benefits set their 16th straight weekly record.

The report added to recent anxiety that the market may have moved too high too quickly on early signs of recovery in the economy. Despite a pullback this week, the Standard & Poor's 500 index is still up more than 30 percent from its 12-year lows in early March.

The NYSE DOW closed LOWER -129.91 points -1.54% on Thursday May 21
Sym Last........ ........Change..........
Dow 8,292.13 -129.91 -1.54%
Nasdaq 1,695.25 -32.59 -1.89%
S&P 500 888.33 -15.14 -1.68%
30-yr Bond 4.31% +0.15

NYSE Volume 7,304,121,000 (prior day 8,437,542,000)
Nasdaq Volume 2,265,691,250 (prior day 2,327,366,250)


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,345.47 -122.94 -2.75%
DAX 4,900.67 -138.27 -2.74%
CAC 40 3,217.41 -85.96 -2.60%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,264.15 -80.49 -0.86%
Hang Seng 17,199.49 -276.35 -1.58%
Straits Times 2,210.97 -58.27 -2.57%

http://finance.yahoo.com/news/Stock...88.html?sec=topStories&pos=main&asset=&ccode=

Stocks are pounded by worries over jobs, UK debt

Wall Street retreats as investors fear rising unemployment could prolong economic recovery

Tim Paradis, AP Business Writer
On Thursday May 21, 2009, 4:53 pm EDT

NEW YORK (AP) -- Another bad signal from the job market and concern over a possible downgrade of British government debt sent stocks sharply lower Thursday.

Major stock indicators slid more than 1.5 percent, cutting nearly 130 points off the Dow Jones industrial average, after continuing claims for unemployment benefits set their 16th straight weekly record.

The report added to recent anxiety that the market may have moved too high too quickly on early signs of recovery in the economy. Despite a pullback this week, the Standard & Poor's 500 index is still up more than 30 percent from its 12-year lows in early March.

Investors were also worrying about how well governments can keep up with public spending to stimulate their economies after Standard & Poor's said Britain may have its rating cut because of rising debt levels. That would raise the cost of borrowing for the British government, which is taking a big role in bailing out that country's stricken banking system.

Even with governments pumping huge amounts of money into economies around the world there are still questions about how soon a rebound might take hold. In the U.S., home prices are still sliding and unemployment remains at a 25-year high.

"It raises questions about our own situation in terms of our deficits and our national debt," said Alan Skrainka, chief market strategist at Edward Jones, of the S&P report. "There are limits to how high you can take these numbers longer term."

The report weighed on bond prices. The yield on the 10-year Treasury note jumped to 3.36 percent from 3.19 percent late Wednesday.

The market did pull off its earlier lows in late afternoon trading, boosted in part by a huge spike in General Motors Corp. shares, which jumped more than 15 percent in the last hour of trading.

GM rose after it agreed with the United Auto Workers to a tentative deal on concessions. The move is a key step toward GM's efforts to restructure outside of bankruptcy court.

According to preliminary calculations, the Dow fell 129.91, or 1.5 percent, to 8,292.13, after earlier falling as much as 201 points. The Standard & Poor's 500 index fell 15.14, or 1.7 percent, to 888.33, and the Nasdaq composite index fell 32.59, or 1.9 percent, to 1,695.25.

In a sign of the market's uneasiness, the Chicago Board Options Exchange Volatility Index, or the VIX, jumped more than 8 percent Thursday, rising back above 30. Known as Wall Street's fear gauge, the VIX hit a milestone earlier this week when it fell below 30 for the first time since September. It hit a record 89.5 in October at the height of the financial market meltdown. The historical average is between 18 and 20.

Stocks wavered this week as the market's ethusiasm eroded amid disappointing data and a downbeat outlook from the Federal Reserve. On Wednesday, stocks gave up early gains and ended lower after the central bank said the economy was likely to shrink by more than expected this year.

Analysts say the market needs to see a continual stream of good news to draw in more buyers.

"The confidence building is a process and it's begun," said Gary Townsend, president and chief executive of Chevy Chase, Md.-based private investment group Hill-Townsend Capital Inc. "Sometimes the market just needs a bit more time."

Analysts also say that a pullback is healthy in light of the market's two-month surge.

"A little bit of relief just makes sense," said Ron Weiner, president and chief executive of RDM Financial in Westport, Conn. "People are starting to understand that all these taxes and stimulus are probably not going to lead to a great, roaring recovery and some of these stocks may have gotten ahead of themselves."

Gains in large bank stocks helped curb the market's overall losses after Goldman Sachs raised its rating on large banks to "neutral."

JPMorgan Chase & Co. added 35 cents to $34.90, while Wells Fargo & Co. rose 58 cents, or 2.4 percent, to $25.04.

Regional bank stocks, however, suffered. Regions Financial Corp. tumbled 79 cents, or 16.2 percent, to $4.10 after it priced a public stock offering at a big discount. Fifth Third Bancorp fell 76 cents, or 9.9 percent, to $6.95, while Huntington Bancshares Inc. lost 52 cents, or 10.8 percent, to $4.30. Both banks also announced plans to boost their capital through public stock offerings.

A number of banks have announced stock offerings in recent weeks, which is a positive sign for the market that companies can once again turn to the public to raise cash. But stock offerings dilute current shareholders' stakes, and the huge influx of bank shares into the market has put pressure on the stocks.

In other trading, the Russell 2000 index of smaller companies fell 12.83, or 2.6 percent, to 476.52.

About three stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.44 billion shares.

The dollar was mostly lower against other major currencies, while gold prices rose.

Light, sweet crude fell 99 cents to settle at $61.05 a barrel on the New York Mercantile Exchange after rising sharply earlier in the week. Investors worried that continued sluggishness in the economy would reduce demand.

Overseas, Japan's Nikkei stock average rose 0.2 percent. In Europe, stocks fell after the S&P warning about Britain's debt. The FTSE 100 in London tumbled 2.8 percent. Germany's DAX index fell 2.7 percent, and France's CAC-40 lost 2.6 percent.

909

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The Dow Jones industrial average closed the week up 8.68, or 0.1 percent, at 8,277.32. The Standard & Poor's 500 index rose 4.1, or 0.47 percent, to 887.00. The Nasdaq composite index rose 11.87, or 0.7 percent, to 1,692.01.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 9,068.60, down 16.48, or 0.2 percent, for the week. A year ago, the index was at 14,127.12.

Wall Street's confidence took some heavy blows this week.

Despite a strong rally on Monday, stocks drifted lower for much of the week on a darkening economic outlook. In a now-familiar pattern, early gains were erased in the last hour of trading Friday as the market lost its will to move higher. Major indexes ended down about 0.2 percent.

Trading has been choppy over the past two weeks as investors began to doubt that a massive two-month rally this spring could be sustained. More bad indicators came this week when the Fed said unemployment could go as high as 9.6 percent, worse than its previous forecast, and Standard & Poor's said the British government might lose is AAA credit rating.


The NYSE DOW closed LOWER -14.81 points -0.18% on Friday May 22
Sym Last........ ........Change..........
Dow 8,277.32 -14.81 -0.18%
Nasdaq 1,692.01 -3.24 -0.19%
S&P 500 887.00 -1.33 -0.15%
30-yr Bond 4.3920% +0.0790

NYSE Volume 5,265,109,500 (prior day 7,304,121,000)
Nasdaq Volume 1,621,297,125 (prior day 2,265,691,250)


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,365.29 +19.82 +0.46%
DAX 4,918.75 +18.08 +0.37%
CAC 40 3,227.97 +10.56 +0.33%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,225.81 -38.34 -0.41%
Hang Seng 17,062.52 -136.97 -0.80%
Straits Times 2,245.27 +34.30 +1.55%

http://finance.yahoo.com/news/Stock...14.html?sec=topStories&pos=main&asset=&ccode=

Stocks lose grip on early gains, Dow off 15

Stocks close out choppy week slightly lower; Investor mood sours on worries about US debt
Tim Paradis and Sara Lepro, AP Business Writer
On Friday May 22, 2009, 6:54 pm EDT

NEW YORK (AP) -- Wall Street's confidence took some heavy blows this week.

Despite a strong rally on Monday, stocks drifted lower for much of the week on a darkening economic outlook. In a now-familiar pattern, early gains were erased in the last hour of trading Friday as the market lost its will to move higher. Major indexes ended down about 0.2 percent.

Trading has been choppy over the past two weeks as investors began to doubt that a massive two-month rally this spring could be sustained. More bad indicators came this week when the Fed said unemployment could go as high as 9.6 percent, worse than its previous forecast, and Standard & Poor's said the British government might lose is AAA credit rating.

Stocks traded most of the day higher on Friday following better-than-expected results from several retailers including Sears Holdings Corp., Gap Inc. and Aeropostale Inc. But losses in financial and industrial shares wound up dragging the market down, marking the third time this week that stocks erased early gains to end lower.

With few economic reports coming out this week, the market was left with little fuel to continue a two and a half-month surge that has lifted stocks up more than 30 percent from 12-year lows in early March.

Next week's economic calendar is much more heavily loaded, with key reports coming on home sales, orders for manufactured goods and consumer confidence. Whether those data please or disappoint the market could be the key to determining what becomes of the spring rally.

"Everything is overpriced," said Harry Rady, chief executive and portfolio manager of Rady Asset Management. "A very long, protracted recession is still very much alive."

The Dow Jones industrial average fell 14.81, or 0.2 percent, to 8,277.32. The S&P 500 index slipped 1.33, or 0.2 percent, to 887.00, and the Nasdaq composite index lost 3.24, or 0.2 percent, to 1,692.01.

Despite the market's seesaw movements this week, all the major indicators finished the five-day period just barely in the black. The Dow rose 0.10 percent; the S&P 500 index rose 0.47 percent; and the Nasdaq rose 0.71 percent.

Investors were jolted by a warning Thursday from Standard & Poor's that it could downgrade the British government's top-shelf debt rating, which would increase its borrowing costs just as it's spending heavily to bail out troubled British banks. That got some thinking that the United States' own AAA rating might also be in jeopardy.

Worries about the U.S. government's credit ratings eased somewhat on Friday, but Treasurys and the dollar both lost ground, with the dollar falling to its weakest level against the euro since January.

The yield on the 10-year Treasury note hit a new high for the year, climbing to 3.46 percent from 3.37 percent late Thursday. The 10-year note is a widely used benchmark for home mortgages and other kinds of loans. Gold prices rose about 1 percent as investors looked for safety.

"The crisis of deficit financing and deficit spending is moving its way up the food chain," said John Brady, senior vice president of global interest rate products at MF Global in Chicago. Brady said investors are worried about whether the economy will be able to recover if interest rates are higher and the dollar is weaker.

Some of the signals this week were encouraging, however. The Federal Reserve said banks reduced borrowing from its emergency loan program over the past week, while investment banks didn't borrow at all -- the first time that's happened since early September.

Financial stocks were mixed after federal regulators made their biggest bank seizure in the year to date as investors tried to figure out how many more failures might be coming. Credit card issuers mainly fell as President Barack Obama signed into law new rules for the credit card industry.

Federal officials late Thursday seized Florida thrift BankUnited FSB in a move that is expected to cost the Federal Deposit Insurance Corp.'s insurance fund $4.9 billion. It's the costliest hit since last year's seizure of California lender IndyMac Bank that is estimated to have cost $10.7 billion.

Bank of America Corp. fell 34 cents, or 3 percent, to $11.07, while Capital One Financial Corp. fell $1.01, or 4.4 percent, to $21.92. American Express Corp. fell 75 cents, or 3.1 percent, to $23.40.

Among retailers, Sears turned in an unexpected profit for its fiscal first quarter, rebounding from a loss a year earlier, as the retailer worked to manage inventory. The stock jumped $5.21, or 10.4 percent, to $55.40.

In other trading, the Russell 2000 index of smaller companies fell 3.60, or 0.8 percent, to 477.62.

Markets will be closed on Monday for the Memorial Day holiday.

About five stocks rose for every four that fell on the New York Stock Exchange, where consolidated volume came to 4.34 billion shares, down sharply from 5.77 billion shares a day earlier.

Oil rose 62 cents to $61.67 per barrel.

Overseas, Britain's FTSE 100 rose 0.5 percent, Germany's DAX index added 0.4 percent, and France's CAC-40 rose 0.3 percent. Japan's Nikkei stock average fell 0.4 percent.

The Dow Jones industrial average closed the week up 8.68, or 0.1 percent, at 8,277.32. The Standard & Poor's 500 index rose 4.1, or 0.47 percent, to 887.00. The Nasdaq composite index rose 11.87, or 0.7 percent, to 1,692.01.

The Russell 2000 index, which tracks the performance of small company stocks, rose 1.78, or 0.4 percent, for the week to 477.62.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 9,068.60, down 16.48, or 0.2 percent, for the week. A year ago, the index was at 14,127.12

977

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

NYSE Markets were closed on Monday May 25 for the Memorial Day holiday.

European stocks searched for direction Monday, closing little changed amid ongoing concerns about the sustainability of recent market gains. Asian shares rose, shrugging off reports of a nuclear test by North Korea.



The NYSE Markets were closed on Monday for the Memorial Day holiday.
Sym Last........ ........Change..........
Dow 8,277.32
Nasdaq 1,692.01
S&P 500 887.00
30-yr Bond 4.3920%


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,365.29 +19.82 +0.46%
DAX 4,918.45 -0.30 -0.01%
CAC 40 3,236.16 +8.19 +0.25%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,347.00 +121.19 +1.31%
Hang Seng 17,121.82 +59.30 +0.35%
Straits Times 2,267.46 +22.19 +0.99%

http://finance.yahoo.com/news/European-markets-flat-Asia-apf-15339927.html

European markets flat, Asia gains

Europe flat, Sanofi up on vaccine order; Asia gains, shrugs off North Korean nuclear test

David Mchugh, AP Business Writer
On Monday May 25, 2009, 12:32 pm EDT

LONDON (AP) -- European stocks searched for direction Monday, closing little changed amid ongoing concerns about the sustainability of recent market gains. Asian shares rose, shrugging off reports of a nuclear test by North Korea.

Germany's DAX index of blue chips closed down 0.3 percent at 4918.45, while the French CAC-40 index rose 0.2 percent to 3236.16. The London and New York stock exchanges were closed for national holidays, a bank holiday in Britain and Memorial Day in the United States.

Shares in Europe recovered in the afternoon after falling after the open on news that that closely watched Ifo institute's survey of German business confidence rose less than expected in May. Sluggish demand weighed on construction and manufacturing in Europe's largest economy as the index increased to 84.2 points in May from 83.7 points in April.

In France, drug maker Sanofi-Aventis was among the CAC-40 gainers, up 1.6 percent on news of a $190 million order for swine flu vaccine from the U.S. government.

That was the second consecutive increase since March, when the indicator hit a 26-year low of 82.2 points, but short of the 85.9 points Ifo had expected and the 85 points predicted by UniCredit.

Global stocks have been seeking direction after solid gains in recent weeks. Backward-looking data such as growth and manufacturing output have been dismal, but some indicators of future activity have been more positive. Investors were looking ahead to key U.S. economic reports this week, including home sales, big-ticket manufactured goods and consumer confidence.

"I think people are catching their breath and seeing how things go," said Gerhard Schwarz, head of equities strategy at UniCredit. "We have of course seen an improvement in several leading indicators ... the big question is, how sustainable is this improvement?"

Asian markets retreated midday after North Korea announced that it had successfully carried out an underground nuclear test. The country's official Korean Central News Agency called it "part of measures to bolster its nuclear deterrent for self-defense."

But investors soon tempered their reaction, turning their attention to domestic issues and the upcoming week's economic reports for further clues about the outlook for the U.S. and global economies.

South Korea's benchmark Kospi index erased nearly all its losses. It plunged as much as 6.3 percent before bouncing back to end just 0.2 percent lower at 1,400.90. The won also recovered from a drop against the dollar.

Tokyo's benchmark Nikkei 225 stock average rose 121.19 points, or 1.3 percent, to 9,347.00 on a slightly weaker yen and gains by steel and drug makers. Hong Kong's Hang Seng index rose 0.4 percent to 17,121.82,

The region's markets have grown accustomed to such maneuvering by North Korea, said Linus Yip, a strategist at First Shanghai Securities Ltd. in Hong Kong.

"For the South Korean market, it's just an excuse for the market to make a correction because markets have shot up too much recently," Yip said. "But I don't see any great impact in other Asian markets."

Japanese electronic retailers climbed after The Nikkei financial daily said home appliance sales surged over the weekend. As part of its economic stimulus efforts, the government kicked off its "eco points" program to boost spending on environmentally friendly electronics. Bic Camera Inc. shot up 7.5 percent and rival Best Denki Co. surged almost 17 percent.

Markets in mainland China and Singapore -- both down earlier -- also rose into positive territory.

Thailand's benchmark index fell after figures showed that Southeast Asia's second-biggest economy contracted 7.1 percent in the first quarter from a year earlier.

Wall Street slid Friday as early gains built on better earnings reports from retailers faded amid anxiety about the outlook for the American economy, the world's largest. The Dow fell 14.81, or 0.2 percent, to 8,277.32. The S&P 500 index slipped 1.33, or 0.2 percent, to 887.00, and the Nasdaq composite index lost 0.2 percent to 1,692.01.

Oil prices slipped, with benchmark crude for July delivery down 43 cents to $61.24 a barrel in electronic trading on the New York Mercantile Exchange.

The dollar traded flat at 94.79 yen, barely up from 94.76 late Friday. The euro was unchanged at $1.3994 after briefly rising above $1.40.

AP Business Writer Kelly Olsen in Seoul and Associated Press Writer Tomoka A. Hosaka in Tokyo contributed to this report.

136

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Consumers are getting more confident about the economy, and Wall Street is tagging along.

Stocks surged Tuesday, posting their first big win in a week after a research group said consumer sentiment rose in May to the highest level since September. Major stock indicators jumped more than 2 percent, including the Dow Jones industrial average, which added 196 points.

The day's gains nudged the Standard & Poor's 500 index back into the plus column for the year and leaves the Nasdaq composite index up 11 percent in 2009. The Dow is still down 3.5 percent.

The NYSE DOW closed HIGHER +196.17 points +2.37% on Tuesday May 26
Sym Last........ ........Change..........
Dow 8,473.49 +196.17 +2.37%
Nasdaq 1,750.43 +58.42 +3.45%
S&P 500 910.33 +23.33 +2.63%
30-yr Bond 4.4460% +0.0540

NYSE Volume 6,845,575,500 (prior day 5,265,109,500)
Nasdaq Volume 2,107,457,750 (prior day 1,621,297,125)


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,411.72 +46.43 +1.06%
DAX 4,985.60 +67.15 +1.37%
CAC 40 3,270.09 +33.93 +1.05%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,310.81 -36.19 -0.39%
Hang Seng 16,991.56 -130.26 -0.76%
Straits Times 2,238.79 -28.67 -1.26%

http://finance.yahoo.com/news/Stocks-jump-after-consumer-apf-15351505.html

Stocks jump after consumer confidence level surges

Street jumps as consumer confidence surges, prompting hopes of higher spending; Dow gains 196

Tim Paradis and Madlen Read, AP Business Writers
On Tuesday May 26, 2009, 5:40 pm EDT

NEW YORK (AP) -- Consumers are getting more confident about the economy, and Wall Street is tagging along.

Stocks surged Tuesday, posting their first big win in a week after a research group said consumer sentiment rose in May to the highest level since September. Major stock indicators jumped more than 2 percent, including the Dow Jones industrial average, which added 196 points.

The day's gains nudged the Standard & Poor's 500 index back into the plus column for the year and leaves the Nasdaq composite index up 11 percent in 2009. The Dow is still down 3.5 percent.

Investors started buying enthusiastically after the Conference Board's Consumer Confidence Index vaulted to 54.9 from 40.8, soaring past the 42.3 that economists surveyed by Thomson Reuters forecast.

Wall Street has been watching the index for signs of whether consumers might start shopping more or buy big-ticket items like cars and homes. Spending by consumers makes up more than two-thirds of U.S. economic activity, making their confidence critical for the nation to pull out of recession.

"The consumer confidence figure is one that no one really pinned a lot of hopes on as going higher," said Jim King, chief investment officer at National Penn Investors Trust Co. With unemployment still high and expected to go higher, many market watchers thought the mood on Main Street would remain gloomy.

Traders saw green on their screens on the first day back from a long weekend but the compressed week could still trip up the market. Data are due on home sales as well as the economy's overall output in the first three months of the year, and investors will be eyeing General Motors Corp. as its June 1 restructuring deadline approaches.

The Dow rose 196.17, or 2.4 percent, to 8,473.49. The S&P 500 index rose 23.33, or 2.6 percent, to 910.33, and the Nasdaq rose 58.42, or 3.5 percent, to 1,750.43.

Analysts said the day's gains reveal how jumpy the market still is and warned that it could show a similar quick reaction to bad news.

"What we see is lot of nervous money on the sidelines so it's sort of this game of chicken when people don't want to be left out of a more sustained rally," said Chris Cordaro, chief investment officer at RegentAtlantic Capital LLC.

Investors have been questioning whether the stock market's massive two-month run can be sustained given the continuing weakness in the global economy in areas like housing and unemployment. Since it closed at 8,574.65 on May 8, the Dow has traded within a 300-point range, lifted by positive news like Tuesday's consumer reading but also hurt by nagging worries about the economy.

The Dow is up 29.4 percent from its 12-year low hit on March 9, but even with the recent gains it's still 40.2 percent below its peak in October 2007.

The Conference Board's report marked the second consecutive month of large gains in its measure of consumer confidence. Its previous report on April 28 helped stanch a slide in the market that day, and investors appeared heartened that the improving trend was continuing into May.

Stocks dependent on strong consumer spending jumped. J.C. Penney Co. rose $1.63, or 6.5 percent, to $26.76, while Best Buy Co. advanced $1.87, or 5.3 percent, to $37.05.

Restaurant chains also rose on the pop in consumer confidence. Darden Restaurants Inc., which operates the Olive Garden and Red Lobster chains, rose $2.60, or 7.9 percent, to $35.64. CKE Restaurants, the parent of the Hardee's and Carl's Jr. fast food chains, jumped $1.07, or 13.8 percent, to $8.80.

Home builder KB Home rose 86 cents, or 5.9 percent, to $15.50, and DR Horton Inc. rose 46 cents, or 5.1 percent, to $9.47. Investors shrugged off a downbeat reading on the housing market. S&P/Case Shiller reported a 18.7 percent drop in its March home price index. The decrease was a little bigger than in February, and slightly larger than economists predicted.

Tech stocks showed some of the biggest gains in part after an analyst raised her rating on Apple Inc. saying the growth of the company's iPhone device has been underestimated. Apple rose $8.28, or 6.8 percent, to $130.78.

GM reversed an early slide after it outlined a deal with labor unions, rising 1 cent to $1.44. However the automaker has yet to reach a deal with its major bondholders and is facing a midnight deadline Tuesday for doing so.

The Russell 2000 index of smaller companies jumped 22.69, or 4.8 percent, to 500.31 as investors placed bets that these businesses would be among the first to benefit from an improving economy as often happens following recessions.

About five stocks rose for every one that fell on the New York Mercantile Exchange, where volume came to 1.34 billion shares compared with 1.1 billion shares traded Friday ahead of the holiday weekend.

Bond prices fell, pushing the yield on the 10-year Treasury note up to a six-month high of 3.55 percent from 3.46 percent late Friday.

The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude rose 78 cents to settle at $62.45 per barrel on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 rose 1.1 percent, Germany's DAX index rose 1.4 percent, and France's CAC-40 rose 1.1 percent. Japan's Nikkei stock average fell 0.4 percent. 223

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The stock market put its rally back on hold as investors worried about rising borrowing costs.

The Dow Jones industrial average fell almost 175 points Wednesday, erasing most of the previous day's rally as a jump in government bond yields fanned concerns that higher interest rates will sap strength from the economy.

A steep drop in the price of the benchmark 10-year Treasury note pushed its yield up to 3.75 percent from 3.55 percent late Tuesday and to the highest level since November. Bond investors were selling on concerns that the huge amount of debt the government is selling to fund its bailout programs will ultimately keep Treasury prices down.

The NYSE DOW closed LOWER -173.47 points -2.05% on Wednesday May 27
Sym Last........ ........Change..........
Dow 8,300.02 -173.47 -2.05%
Nasdaq 1,731.08 -19.35 -1.11%
S&P 500 893.06 -17.27 -1.90%
30-yr Bond 4.6060% +0.1600

NYSE Volume 6,852,967,000 (prior day 6,845,575,500)
Nasdaq Volume 2,195,047,750 (prior day 2,107,457,750)

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,409.74 -1.98 -0.04%
DAX 4,984.22 -1.38 -0.03%
CAC 40 3,275.13 +5.04 +0.15%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,438.77 +127.96 +1.37%
Hang Seng 17,885.27 +893.71 +5.26%
Straits Times 2,309.89 +71.10

http://finance.yahoo.com/news/Slumping-Treasury-bond-prices-apf-15364108.html

Slumping Treasury bond prices send stocks lower

Stocks tumble as 10-year note yield jumps on worries about borrowing costs; Dow falls 173
Tim Paradis, AP Business Writer
On Wednesday May 27, 2009, 6:13 pm EDT

The stock market put its rally back on hold as investors worried about rising borrowing costs.

The Dow Jones industrial average fell almost 175 points Wednesday, erasing most of the previous day's rally as a jump in government bond yields fanned concerns that higher interest rates will sap strength from the economy.

A steep drop in the price of the benchmark 10-year Treasury note pushed its yield up to 3.75 percent from 3.55 percent late Tuesday and to the highest level since November. Bond investors were selling on concerns that the huge amount of debt the government is selling to fund its bailout programs will ultimately keep Treasury prices down.

Along with increasing borrowing costs for the government, rising yields on Treasury debt could hamper an economic recovery since they are used as benchmarks for home mortgages and other kinds of loans. Higher mortgage rates could delay a recovery in the battered housing market.

"The equity market is getting worried about the 'green shoots.' I think the deer have nipped off a few and I think a few turned out to be weeds," said Hank Herrmann, chief executive of Waddell & Reed. Herrmann was referring to early positive signs in the economy that Federal Reserve Chairman Ben Bernanke has called "green shoots."

While Wall Street has been rallying for most of the past three months on those early signs of recovery, it has also been vulnerable to unexpected turns such as the jump in Treasury yields.

"Stocks are following bonds," said John Brady, senior vice president of global interest rate products at MF Global. "Will the economy grow and expand vigorously in the face of sustained higher interest rates?"

The Dow lost ground for the fifth time in six days, falling 173.47, or 2.1 percent, to 8,300.02 after rising 196 points on Tuesday. The Standard & Poor's 500 index fell 17.27, or 1.9 percent, to 893.06, and the technology-laden Nasdaq composite index fell 19.35, or 1.1 percent, to 1,731.08.

On Tuesday, stocks soared after an upbeat reading on consumer confidence lifted hopes for an economic rebound later this year.

The Dow is still 26.8 percent above the lows it reached in early March, but 41.4 percent below the record high it hit in October 2007.

The drop in bond prices Wednesday followed a well-received auction of $35 billion in five-year notes and a day ahead of an auction of $26 billion in 7-year notes. All told, the government plans to turn out $101 billion in debt this week.

Some traders fear demand for Treasurys could weaken as the government issues massive amounts of debt to fund its financial and economic rescue programs. The Federal Reserve has said it would buy up to $300 billion in Treasury debt this year as part of its efforts to keep borrowing costs low. But investors are now concerned that the central bank isn't buying as much as some had hoped.

Wednesday's stock market retreat also came as General Motors Corp. said not enough bondholders agreed to swap their debt for company stock, meaning the automaker is almost certainly headed for bankruptcy protection. GM has until Monday to either finish restructuring outside of court or file for Chapter 11. Value in its stock would be wiped out.

GM slid 29 cents, or 20.1 percent, to $1.15.

The prospect of a GM bankruptcy also made it more likely that the company would be plucked from among the 30 stocks that make up the Dow industrials. GM's tumbling stock price has hurt the index as shares fell from as high as $18.18 last June.

Many investors have been expecting GM to enter Chapter 11 for some time, but the reality of it happening could still deal Wall Street a psychological blow.

Some analysts say the market should be able to weather a GM filing. Mark Coffelt, portfolio manager at Empiric Funds, thinks Wall Street's recovery since hitting 12-year lows in early March leaves stocks better suited to shrug off GM's troubles.

"The market has come a long way in a short period. I would expect it to settle out a little bit," he said, predicting more back-and-forth days rather than more big gains in a short period.

Investors on Wednesday also worried about housing and financial stocks.

The National Association of Realtors said sales of previously occupied homes rose from March to April as buyers hunted for bargains. But the 2.9 percent increase in sales came as the number of unsold homes on the market at the end of April rose 9 percent, meaning a 10-month supply at the current sales pace.

Financial stocks fell after the Federal Deposit Insurance Corp. said the number of troubled banks jumped to the highest level in 15 years during the first quarter.

Agricultural products maker Monsanto Co. fell $5.37, or 6.3 percent, to $79.88 after saying it expects to meet the low end of its fiscal 2009 earnings forecast.

Flash-memory maker SanDisk Corp. renewed a licensing agreement with South Korea's Samsung Electronics Co. SanDisk jumped $1.94, or 14.3 percent, to $15.52.

In other trading, the Russell 2000 index of smaller companies fell 10.45, or 2.1 percent, to 489.86.

About two stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 5.5 billion shares, essentially flat with Tuesday.

The dollar was mixed against other major currencies. Gold prices edged higher.

Light, sweet crude rose $1 to settle at $63.45 per barrel on the New York Mercantile Exchange, its highest level since early November.

Overseas, Britain's FTSE 100 rose 0.1 percent, Germany's DAX index rose 0.3 percent, and France's CAC-40 added 0.8 percent. Japan's Nikkei stock average rebounded 1.4 percent.
264

 

[bigdog]

http://www.wabusinessnews.com.au/en-story.php?/1/72742/GM-bankruptcy-would-shake-up-Dow-index/dba

GM bankruptcy would shake up Dow index
28-May-09 by AAP

A bankruptcy filing by General Motors Corp would not only send one of America's most storied automakers into further upheaval, it would also force a shake-up in the Dow Jones industrial average.

Once a company files for bankruptcy protection, it is disqualified from being one of the 30 Dow components, said John Prestbo, editor and executive director of Dow Jones Indexes.

As for a replacement, that decision rests with the managing editor of The Wall Street Journal, Robert Thomson. Prestbo said he and other senior editors at the Journal consult with Thomson on any potential changes to the Dow, but Thomson has the final say.

While editors are always reviewing the components that comprise the Dow, Prestbo said "I think it would be fair to say we're aware of GM's situation and taking steps accordingly."

GM, which was added to the Dow Jones industrials in 1925, has been hammered as the economy worsened and new car sales plummeted.

Shares of GM have lost 55 per cent of their value since the beginning of the year and 97 per cent since they reached a multiyear high in October 2007.

The Dow, meanwhile, is down 5.4 per cent this year, and 41.4 since reaching its record high of 14,164.53, also in October 2007.

GM's replacement wouldn't have to be another automaker or even another manufacturing or industrial company.

There are no hard rules as to which companies make up the index. The main goal is to try and duplicate in the Dow the weights of all market sectors excluding utilities and transportation companies, Prestbo said.

The Dow has separate indexes to track utilities and transportation firms, which is why they are not included in the industrial average.

In a research note last month, Nicholas Colas, chief market strategist for BNY ConvergEx Group, laid out seven possible replacements for GM: bankers Goldman Sachs Group Inc. and Wells Fargo & Co; high-tech firms Cisco Systems Inc, Apple Inc, Google Inc and Oracle Corp; and agricultural products maker Monsanto Co.

Kenneth Froewiss, a professor of finance at New York University's Stern School of Business, said a company's addition to the Dow would likely have little impact on its stock. Fewer mutual funds track or mimic the Dow than they do broader indexes such as the Standard & Poor's 500. That means there would be little more than some added publicity for the company that replaces GM, he said.

However, GM is also a component of the S&P 500, so a company chosen to replace it in that index could see a blip up in trading when funds that track the S&P 500 buy its shares.

GM would be the second firm to be removed from the Dow amid the ongoing economic crisis. Last September, insurer American International Group Inc was removed after the government took an 80 per cent stake in the firm to help it avoid complete collapse. AIG was replaced by Kraft Foods Inc on Sept 22.

A bankruptcy filing could also lead to GM's delisting from the New York Stock Exchange.

While GM currently meets all the minimum requirements for trading, a bankruptcy filing would spark a review among the qualitative standards that the exchange uses to determine if a company should be listed. Qualitative standards include the impact of bankruptcy filings, liquidity concerns or debt defaults.

A bankruptcy-related review would determine what will happen to current shareholders, and if there is any possibility shareholders would still retain value in the company after it exits the proceedings.

If GM's share price or other trading data falls below certain thresholds, that could also trigger a delisting.

Only one company that is currently under bankruptcy protection, W.R. Grace Co, is listed on the New York Stock Exchange.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The day's gains returned the S&P 500 index to the black for the year after sliding on Wednesday. The Dow is down 4.3 percent in 2009, while the Nasdaq is up 11.1 percent.

Interest rate movements called the shots on Wall Street for the second straight day.

The bond market recovered on Thursday, bringing stocks along with it, a day after panicky selling pushed long-term borrowing rates to their highest level in six months.

Stock indicators rose more than 1 percent, including the Dow Jones industrial average, which gained almost 104 points.

The yield on the 10-year Treasury note, a widely used benchmark for mortgages and other kinds of loans, moved decisively lower to 3.62 percent from 3.75 percent the day before as investors were relieved to see ample demand at an auction for Treasury debt.

The NYSE DOW closed HIGHER +103.78 points +1.25% on Thursday May 28
Sym Last........ ........Change..........
Dow 8,403.80 +103.78 +1.25%
Nasdaq 1,751.79 +20.71 +1.20%
S&P 500 906.83 +13.77 +1.54%
30-yr Bond 4.5300% -0.0760

NYSE Volume 7,002,272,500 (prior day 6,852,967,000)
Nasdaq Volume 2,244,344,250 (prior day 2,195,047,750)

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,387.54 -28.69 -0.65%
DAX 4,932.88 -67.89 -1.36%
CAC 40 3,263.70 -31.16 -0.95%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,451.39 +12.62 +0.13%
Hang Seng 17,885.27 +893.71 +5.26%
Straits Times 2,292.97 -13.11 -0.57%

http://finance.yahoo.com/news/Stocks-jump-on-relief-over-apf-15377073.html

Stocks jump on relief over gov't debt auction

Stocks jump on relief over good demand for government debt; Oil jumps to 6-month high

Tim Paradis, AP Business Writer
On Thursday May 28, 2009, 6:20 pm EDT

NEW YORK (AP) -- Interest rate movements called the shots on Wall Street for the second straight day.

The bond market recovered on Thursday, bringing stocks along with it, a day after panicky selling pushed long-term borrowing rates to their highest level in six months.

Stock indicators rose more than 1 percent, including the Dow Jones industrial average, which gained almost 104 points.

The yield on the 10-year Treasury note, a widely used benchmark for mortgages and other kinds of loans, moved decisively lower to 3.62 percent from 3.75 percent the day before as investors were relieved to see ample demand at an auction for Treasury debt.

The note's yield had surged the day before, triggering a selloff in stocks, on concerns that a flood of U.S. government debt coming to market this year would overwhelm demand. In addition to raising borrowing costs for the government, higher yields on long-term Treasurys could threaten a recovery by driving up borrowing costs for consumers. The Federal Reserve has said it would buy large amounts of Treasurys and other kinds of debt in an effort to keep borrowing costs low.

Stock trading could remain jumpy going forward as investors look closely at interest rates as well as economic data for confirmation that the market's aggressive bet this spring on an economic recovery is still sound. The Standard & Poor's 500 index is still up 34 percent from a 12-year low in early March.

"The market is absolutely being held hostage to the data," said David Joy, chief market strategist at Ameriprise Financial Inc.'s RiverSource Investments.

Joy pointed to the market's immediate reaction after the Treasury auction Thursday of $26 billion in 7-year notes, part of the $101 billion in debt the government offered this week. "There was a real sigh of relief," he said.

The Dow rose 103.78, or 1.3 percent, to 8,403.80. The S&P 500 index rose 13.77, or 1.5 percent, to 906.83, and the Nasdaq composite index advanced 20.71, or 1.2 percent, to 1,751.79.

The day's gains returned the S&P 500 index to the black for the year after sliding on Wednesday. The Dow is down 4.3 percent in 2009, while the Nasdaq is up 11.1 percent.

The stock market logged its best month in nine years in April, but the advances heading into the final day of trading for May are far more modest. Still, a gain for May would mark the third straight month of rising stock prices.

Trading was choppy in the first half of the day on Thursday, following disappointing news on new home sales and foreclosures, while energy shares drew support from a jump in crude oil prices.

Light, sweet crude rose $1.63 to settle at $65.08 a barrel on the New York Mercantile Exchange, a six-month high. Marathon Oil Corp. jumped $1.77, or 6.1 percent, to $31.01, and Devon Energy Corp. rose $2.02, or 3.4 percent, to $62.31.

New data on the housing market -- a key area of concern for investors -- wasn't encouraging.

The government said sales of new homes edged up only 0.3 percent in April, less than analysts expected, and a separate report showed that a record 12 percent of mortgage holders were behind on payments or in foreclosure in the first quarter.

Homebuilder stocks fell after the poor housing data came out and on worries that mortgage rates could move higher. Toll Brothers Inc. fell 58 cents, or 3.2 percent, to $17.44, while Beazer Homes USA Inc. fell 18 cents, or 7 percent, to $2.39.

"We still have headwinds ahead, in terms of the housing market going down," said Michael Sheldon, chief market strategist at RDM Financial Group.

Financial stocks also rose. JPMorgan Chase & Co. rose $1.99, or 5.7 percent, to $36.65, while PNC Financial Services Group Inc. rose $2.55, or 6.2 percent, to $43.66.

Investors were also focusing on General Motors Corp., which said a committee of bondholders agreed to a sweetened deal to erase some of GM's unsecured debt in exchange for stock. The agreement may not prevent the automaker from seeking bankruptcy court protection, but investors are eager for any signs that a reorganization would be orderly. GM shares rose 15 cents, or 13 percent, to $1.30.

In other trading Thursday, the Russell 2000 index of smaller companies rose 2.35, or 0.5 percent, to 492.21.

About two stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.4 billion shares, compared with 1.3 billion shares Wednesday.

The dollar was mixed against other major currencies. Gold prices rose.

Overseas, Britain's FTSE 100 fell 0.7 percent, Germany's DAX index fell 1.4 percent, and France's CAC-40 slid 0.8 percent. Japan's Nikkei stock average edged up 0.1 percent.
372

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

All three indexes rose sharply for the week and, more importantly, had their third straight winning month. The Dow is up 4.1 percent for May, the S&P 500 index is up 5.3 percent, and the Nasdaq is up 3.3 percent.

Wall Street sealed the third month of its spring rally with a huge advance. The fourth month looks a little less certain.

Stocks shot higher right before the closing bell Friday after fluctuating on a mix of economic data. Analysts said the surge was the work of short-sellers who had bet that stocks would fall and then had to rush to buy when those bets turned out to be wrong.

A jump in commodities prices, which came on expectations that an improving economy will lift demand for raw materials, also fed the advance.

The NYSE DOW closed HIGHER +96.53 points +1.15% on Friday May 29
Sym Last........ ........Change..........
Dow 8,500.33 +96.53 +1.15%
Nasdaq 1,774.33 +22.54 +1.29%
S&P 500 919.14 +12.31 +1.36%
30-yr Bond 4.34% -0.19

NYSE Volume 6,975,596,000 (prior day 7,002,272,500)
Nasdaq Volume 2,592,391,750 (prior day 2,244,344,250)


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,417.94 +30.40 +0.69%
DAX 4,940.82 +7.94 +0.16%
CAC 40 3,277.65 +13.95 +0.43%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,522.50 +71.11 +0.75%
Hang Seng 18,171.00 +285.73 +1.60%
Straits Times 2,329.08 +36.11 +1.57%

http://finance.yahoo.com/news/Stock-market-soars-in-lateday-apf-15388171.html

Stock market soars in late-day rally

Stocks shoot higher in late-day rally after mixed data, commodities advance
Madlen Read, AP Business Writer
On Friday May 29, 2009, 5:16 pm EDT

NEW YORK (AP) -- Wall Street sealed the third month of its spring rally with a huge advance. The fourth month looks a little less certain.

Stocks shot higher right before the closing bell Friday after fluctuating on a mix of economic data. Analysts said the surge was the work of short-sellers who had bet that stocks would fall and then had to rush to buy when those bets turned out to be wrong.

A jump in commodities prices, which came on expectations that an improving economy will lift demand for raw materials, also fed the advance.

Even though Wall Street ended May with a big win, it was the shakiest month of the spring rally that started in early March with the first signs that the economy's slide was slowing. When trading resumes Monday, investors are expected to show more of their recent skepticism about how strong the recovery will be once the recession has ended.

New worries are weighing on investors including climbing interest rates and a weaker dollar. Crude oil prices recently hit a six-month high above $66 a barrel, while the dollar on Friday sank to its lowest level in months against the euro and British pound. Some analysts say these developments are simply the consequence of a recovery in the economy and the financial markets, but others warn these trends could threaten the economy's health in the long-term.

Another more short-term obstacle is General Motors Corp.'s expected bankruptcy filing on Monday, the automaker's restructuring deadline. The market has been factoring in the likelihood of a GM bankruptcy for months, but investors still are unsure what the fallout might be for auto suppliers and other companies.

"Technically, the market is looking quite good," said Peter Cardillo, chief market economist at the brokerage house Avalon Partners Inc. "Although, I suspect we'll probably stay within this trading range for another couple of weeks."

The Dow Jones industrial average rose 96.53, or 1.2 percent, to 8,500.33. The Standard & Poor's 500 index gained 12.31, or 1.4 percent, to 919.14, while the Nasdaq composite index rose 22.54, or 1.3 percent, to 1,774.33.

All three indexes rose sharply for the week and, more importantly, had their third straight winning month. The Dow is up 4.1 percent for May, the S&P 500 index is up 5.3 percent, and the Nasdaq is up 3.3 percent.

Friday's economic data prevented the market from finding a direction for much of the day. Commerce Department's report on first-quarter gross domestic product showed the economy contracted at an annual rate of 5.7 percent, a bit more than analysts' forecasts. Also, personal spending was revised lower. But the drop in GDP was smaller than the 6.1 percent estimated last month, and the report showed corporate profits rising.

The report "points to recovery," Cardillo said. "And what you have here is a market that continues to look for recovery."

The Chicago-area purchasing executives monthly report of Midwest manufacturing activity showed a bigger decrease in May than in April. Analysts had anticipated a smaller contraction. The report is viewed as a precursor to the Institute for Supply Management's national manufacturing index, due Monday.

But helping counteract that disappointing report was the University of Michigan's index of consumer sentiment, which showed a larger-than-expected increase in May. Another report earlier in the week suggested an upswing in consumer confidence, too.

Government bonds rose, pushing down yields. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.46 percent from 3.62 percent late Thursday.

The 10-year yield hit a six-month high of 3.75 percent on Wednesday. Spiking interest rates earlier this week stoked concerns about Americans' ability to borrow and refinance mortgages.

Oil prices have been jumping to six-month highs as the dollar tumbles. Light, sweet crude rose $1.23 to settle at $66.31 a barrel on the New York Mercantile Exchange. Gold and silver prices rose as well.

Rising commodities prices have driven some of the best performers in the stock market over the past month: Metal and coal producers, miners and pipelines.

Technology stocks have also picked up in recent weeks.

The weakening dollar is also drawing more investors, like Robert Pavlik of Banyan Partners LLC, to the stocks of multinational companies. Those companies can export more and earn higher overseas revenues when the dollar is down, he said.

The worst performers in May were companies tied to the housing market and discretionary spending, such as construction companies, home improvement retailers, furniture makers and consumer electronics sellers. And financial stocks, while holding up, have not been leading the market higher as they were in March and April.

The Russell 2000 index of smaller companies rose 9.37, or 1.9 percent, to 501.58.

Advancing stocks outnumbered declining stocks by more than 3 to 1 on the New York Stock Exchange, where volume was 1.86 billion shares. Volumes were lighter than on Thursday.

Overseas, Japan's Nikkei stock average rose 0.8 percent. Britain's FTSE 100 rose 0.7 percent, Germany's DAX index rose 0.2 percent, and France's CAC-40 rose 0.4 percent.
418

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

A VOLUNTEER IS REQUIRED TO POST THIS FORUM PAGE EACH DAY FOR TWO WEEKS - I WILL BE OVERSEAS UNTIL JUNE 20; PLEASE ADVISE

The stock market began June with a strong rally, thanks to another wave of benign economic data.

But some investors are nervous that the month, traditionally a weak one for stocks, may not end as well. The market's gains on Monday came despite signs that the economy might have a tough slog ahead of it, including rising interest rates and the nation's fourth-largest bankruptcy ever.

Traders homed in Monday on better-than-expected readings on manufacturing, consumer spending and construction spending. The Dow Jones industrial average and other major indexes rose more than 2 percent, and the Standard & Poor's 500 index and Nasdaq composite rose to their highest levels this year.


The NYSE DOW closed HIGHER +221.11 points +2.60% on Monday June 1
Sym Last........ ........Change..........
Dow 8,721.44 +221.11 +2.60%
Nasdaq 1,828.68 +54.35 +3.06%
S&P 500 942.87 +23.73 +2.58%
30-yr Bond 4.5750% +0.2370

NYSE Volume 7,682,703,500 (prior day 6,975,596,000)
Nasdaq Volume 2,658,125,750 (prior day 2,592,391,750)


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,506.19 +88.25 +2.00%
DAX 5,142.56 +201.74 +4.08%
CAC 40 3,379.49 +101.84 +3.11%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,677.75 +155.25 +1.63%
Hang Seng 18,888.59 +717.59 +3.95%
Straits Times 2,380.07 +50.99 +2.19%

http://finance.yahoo.com/news/Stocks-rally-after-positive-apf-15405628.html

Stocks rally after positive economic data

Stock market starts off June with a rally after upbeat economic data; Dow ends up 221
Madlen Read, AP Business Writer
On Monday June 1, 2009, 5:47 pm EDT

NEW YORK (AP) -- The stock market began June with a strong rally, thanks to another wave of benign economic data.

But some investors are nervous that the month, traditionally a weak one for stocks, may not end as well. The market's gains on Monday came despite signs that the economy might have a tough slog ahead of it, including rising interest rates and the nation's fourth-largest bankruptcy ever.

Traders homed in Monday on better-than-expected readings on manufacturing, consumer spending and construction spending. The Dow Jones industrial average and other major indexes rose more than 2 percent, and the Standard & Poor's 500 index and Nasdaq composite rose to their highest levels this year.

But while the economic data suggested the economy's decline is moderating, they did not indicate a rebound yet. Construction spending rose in April, but personal spending was down slightly. Personal incomes were flat and U.S. manufacturing activity contracted for the 16th straight month in May, although at a slower pace.

Monday also brought General Motors Corp.'s bankruptcy filing, the fourth-largest in U.S. history. The filing didn't come as a shock, but it did serve as a reminder of the government's heavy involvement in corporate America following the takeovers of American International Group Inc. and the mortgage giants Freddie Mae and Freddie Mac.

Separately, a trend that ruffled investors last week -- falling Treasury prices and surging yields -- resumed Monday as economic data topped estimates and drove the dollar lower. Unlike last week, the stock market shrugged off the rise in long-term borrowing rates, which some fear could hamper a recovery by driving up interest rates on mortgages and other consumer loans.

With the stock market now nearly three months old, a number of analysts think the market has come too far, too fast since hitting 12-year lows in early March. The S&P 500 had its quickest recovery since the 1930s.

"I can't really buy into today's super-happy stock market," said Kim Caughey, equity research analyst at Fort Pitt Capital Group. She said she was skeptical because even if the economy is stabilizing, there is little to drive demand once it bottoms.

Analysts pointed out that technical factors also pushed stocks higher on Monday. The first trading day of the month often brings with it a surge of new money from mutual funds, and the S&P and Dow both broke through their 200-day moving averages for the first time in well over a year. Moving averages are closely watched technical barometers for the market, and some traders will automatically buy or sell if those levels are breached.

The Dow rose 221.11, or 2.6 percent, to 8,721.44, its highest close since early January. The index is now down only 55 points, or 0.6 percent, for the year.

The Standard & Poor's 500 index rose 23.73, or 2.6 percent, to 942.87, while the Nasdaq composite index rose 54.35, or 3.1 percent, to 1,828.68.

So far, this year's stock market has had an eerily similar pattern to last year's, noted Shaeffer's Investment Research analyst Todd Salamone, falling until mid-March and then gaining through May. Then in June of last year, the market started to sink. Salamone pointed out that the average return for the month of June during the past 20 years is negative 0.5 percent.

Standard & Poor's chief economist David Wyss said he expects the U.S. economy to bottom out late this summer or early in the fall, and then experience only a "rather sluggish" recovery. Wyss predicted U.S. gross domestic product -- all of the goods and services produced in a country -- to drop 3.1 percent this year, with even sharper declines in European economies and Japan.

Another hurdle that's approaching later this summer: Second-quarter corporate earnings results. If those come in worse than investors anticipated, Caughey said, "we'll have a reason to hate the market again."

So while the stock market's technical achievements Monday helped bring about gains, they are also raising questions about the staying power of those gains.

Jack Ablin, chief investment officer at Harris Private Bank, noted that returns are much better when the stock market is trading above its 200-day moving average, but that the statistic itself can send "a number of false signals."

Also, trading on the first day of the month is generally much stronger than normal. The S&P 500 index was down about 34 percent in the 10 years leading up to May 1. But according to S&P data, if someone invested in the index only on the first day of the month over that time frame, he would have gained 21 percent.

Government bonds fell again Monday, driving yields back near last week's highs. The yield on the 10-year Treasury note, used as a benchmark for home mortgages and other consumer loans, rose to 3.68 percent from 3.46 percent late Friday.

The dollar weakened further Monday against the euro and the British pound. Gold slipped, but oil jumped.

Advancing stocks outnumbered decliners by about 5 to 1 on the New York Stock Exchange, where volume came to 1.5 billion shares, similar to Friday.

The Russell 2000 index of smaller companies rose 19.75, or 3.9 percent, to 521.33.

Manufacturing surveys out of Europe and Asia topped estimates, which drove up markets overseas. Japan's Nikkei stock average jumped 1.6 percent, while Hong Kong's Hang Seng index soared 4.0 percent. In Europe, Britain's FTSE 100 rose 2 percent, Germany's DAX index rose 4.1 percent and France's CAC-40 gained 3.1 percent.
595

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

VOLUNTEER REQUIRED TO POST THIS FORUM PAGE EACH DAY FOR TWO WEEKS - I WILL BE OVERSEAS UNTIL JUNE 20; PLEASE ADVISE

Investors slowed their move into the market from a sprint to a walk.

Stocks tacked on modest gains Tuesday to extend a rally to a fourth day following a strong rise in pending home sales, the latest encouraging signal for the troubled housing market.

The Dow Jones industrial average briefly pushed into the black for 2009 but ended 35.5 points below the break-even mark. In March, the blue chips were down more than 2,200 points, or 25.4 percent, for the year.

The NYSE DOW closed HIGHER +19.43 points +0.22% on Tuesday June 2
Sym Last........ ........Change..........
Dow 8,740.87 +19.43 +0.22%
Nasdaq 1,836.80 +8.12 +0.44%
S&P 500 944.74 +1.87 +0.20%
30-yr Bond 4.4890% -0.0860

NYSE Volume 7,020,117,500 (prior day 7,682,703,500)
Nasdaq Volume 2,417,972,500 (prior day 2,658,125,750)


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,477.02 -29.17 -0.65%
DAX 5,144.06 +1.50 +0.03%
CAC 40 3,378.04 -1.45 -0.04%



Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,704.31 Nikkei stock average rose 0.3 percent.
Hang Seng 18,389.08 0.00 0.00%
Straits Times 2,375.82 0.00 0.00%

http://finance.yahoo.com/news/Stock...19134.html?sec=topStories&pos=1&asset=&ccode=

Stocks extend gains to 4th day; Banks slide

Stocks add to advance after upbeat housing report; Selling in financials caps market's gains
Tim Paradis, AP Business Writer
On Tuesday June 2, 2009, 5:50 pm EDT

NEW YORK (AP) -- Investors slowed their move into the market from a sprint to a walk.

Stocks tacked on modest gains Tuesday to extend a rally to a fourth day following a strong rise in pending home sales, the latest encouraging signal for the troubled housing market.

The Dow Jones industrial average briefly pushed into the black for 2009 but ended 35.5 points below the break-even mark. In March, the blue chips were down more than 2,200 points, or 25.4 percent, for the year.

A report showing April recorded the biggest jump in pending home sales in nearly eight years gave the market fresh fuel to push higher. But a slump in financial shares kept overall buying in check as several big banks said they would sell more stock to repay federal bailout money.

The modest moves followed huge gains on Monday, when indicators jumped more than 2 percent on positive signs for manufacturing and other good economic signals.

William Rutherford, president of Rutherford Investment Management LLC in Portland, Ore., worries that even with promising economic data the three-month rally in stocks might be overdone.

"The economy has to recover nicely to justify the recent run-up and I don't know whether it's got that much momentum in it," he said.

The Dow rose 19.43, or 0.2 percent, to 8,740.87. The index at times traded above 8,776.39, its finish for 2008. While it remains down moderately for the year, the Dow is up 5.3 percent in four days, its best run since early April.

The Standard & Poor's 500 index rose 1.87, or 0.2 percent, to 944.74, and the Nasdaq composite index rose 8.12, or 0.4 percent, to 1,836.80. Both indexes are up for 2009.

Financial stocks mostly lost ground as several banks said they would sell shares to raise capital. Adding to their share base can dilute the value of existing shares.

Morgan Stanley said it will raise $2.2 billion in a stock offering, after JPMorgan Chase & Co. and American Express Co. announced similar plans late Monday. JPMorgan will offer $5 billion of common stock, while American Express is seeking to raise $500 million.

Morgan Stanley rose 20 cents to $30.09, while JPMorgan fell $1.61, or 4.5 percent, to $34.50. American Express slid $1.28, or 4.9 percent, to $24.71.

Meanwhile, Goldman Sachs Group Inc. has sold part of its stake in Industrial & Commercial Bank of China to raise more than $1.9 billion to help repay bailout money. Goldman fell $1.20 to $143.13.

"We've seen a drumbeat of new issuance in the banking sector. So far, the market has been able to absorb the supply pretty well. It's going to be yet another test," said Craig Peckham, an analyst at Jefferies & Co.

Investors drew some confidence from slight improvements in auto sales reports for May following the bankruptcy filings of Chrysler LLC and General Motors Corp. Ford rose 28 cents, or 4.6 percent, to $6.41. GM shares no longer trade on the New York Stock Exchange and Chrysler isn't public.

Investors have been encouraged this spring by data suggesting the economy's slide is slowing, sending major stock indicators up 30 to 40 percent from the 12-year lows they hit in early March. The market has been able to look past unsettling but widely expected events such as the bankruptcies of Chrysler and GM, as well as dismal reports on the labor market.

Market analysts warn, however, that some pullback is likely in order for the market to build sustainable gains. Straight-line advances tend to worry stock watchers as signs of indiscriminate buying that could quickly evaporate at the first sign of trouble.

This week investors will be closely watching a stream of economic reports -- particularly the monthly jobs data on Friday -- for more signals on where to take the market next.

The report on pending home sales lifted home builder stocks. Beazer Homes USA Inc. rose 24 cents, or 9.1 percent, to $2.87, while Toll Brothers Inc. rose 73 cents, or 3.9 percent, to $19.53.

About three stocks rose for every two that fell on the NYSE, where consolidated volume came to a light 5.8 billion shares compared with 6.2 billion shares Monday.

The Russell 2000 index of smaller companies rose 5.30, or 1 percent, to 526.63.

Interest rates on long-term Treasurys fell after jumping back and approaching last week's highs on Monday. The yield on the 10-year Treasury note, which is used as a benchmark for home mortgages and other consumer loans, fell to 3.62 percent from 3.68 percent late Monday. Investors have been mindful in recent weeks of how rising yields could hamper an economic recovery by driving up interest rates.

The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude fell 3 cents to settle at $68.55 on the New York Mercantile Exchange after finishing at its highest level of the year on Monday.

Overseas, Britain's FTSE 100 fell 0.7 percent, Germany's DAX index rose less than 0.1 percent, and France's CAC-40 slipped less than 0.1 percent. Japan's Nikkei stock average rose 0.3 percent.
646

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

VOLUNTEER REQUIRED TO POST THIS FORUM PAGE EACH DAY FOR TWO WEEKS - I WILL BE OVERSEAS UNTIL JUNE 20; PLEASE ADVISE

The problem with rising expectations is they get tougher to beat.

Investors broke the stock market's four-day rally and sold off after data on the services industry and factory orders came in below forecasts. Factory orders actually rose in April, but the report disappointed investors who anticipated a larger increase.

The Dow Jones industrial average fell almost 66 points, or 0.8 percent, while the Standard & Poor's 500 index fell 1.4 percent. The Nasdaq composite index, which has been outperforming the other indicators this year, fell just 0.6 percent.


The NYSE DOW closed LOWER -65.63 -0.75% on Wednesday June 3
Sym Last........ ........Change..........
Dow 8,675.24 -65.63 -0.75%
Nasdaq 1,825.92 -10.88 -0.59%
S&P 500 931.76 -12.98 -1.37%
30-yr Bond 4.4450% -0.0440

NYSE Volume 6,288,445,500 (prior day 7,020,117,500)
Nasdaq Volume 2,311,343,750 (prior day 2,417,972,500)

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,383.42 -93.60 -2.09%
DAX 5,054.53 -89.53 -1.74%
CAC 40 3,309.65 -68.39 -2.02%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,741.67 +37.36 +0.38%
Hang Seng 18,576.47 +187.39 +1.02%
Straits Times 2,383.82 +8.00 +0.34%

http://finance.yahoo.com/news/Worsethanexpected-economic-apf-15432049.html

Worse-than-expected economic data thwarts rally

Stocks fall, breaking 4-day rise, on worse-than-expected data on factory orders, services

Madlen Read and Sara Lepro, AP Business Writers
On Wednesday June 3, 2009, 5:33 pm EDT

NEW YORK (AP) -- The problem with rising expectations is they get tougher to beat.

Investors broke the stock market's four-day rally and sold off after data on the services industry and factory orders came in below forecasts. Factory orders actually rose in April, but the report disappointed investors who anticipated a larger increase.

The Dow Jones industrial average fell almost 66 points, or 0.8 percent, while the Standard & Poor's 500 index fell 1.4 percent. The Nasdaq composite index, which has been outperforming the other indicators this year, fell just 0.6 percent.

Optimism about the economy stabilizing has lifted the Dow 32.5 percent from its 12-year low reached in early March. Over those three months, topping investors' expectations meant clearing a relatively low bar.

Alan Gayle, senior investment strategist at RidgeWorth Capital Management, said he began increasing his stock holdings in March on signs that economic data was becoming "less bad."

Now, Gayle said, "'less bad' is not good enough."

Even Federal Reserve Chairman Ben Bernanke was no longer emphasizing signs of economic stabilization on Wednesday, as he has done in recent months. In testimony to Congress, Bernanke focused instead on the government's growing debt load, saying that failing to ease the deficit could undermine efforts to revitalize the economy.

In the last hour of trading, however, some traders bought back into the stock market to take advantage of reduced prices, said Ryan Larson, senior equity trader at Voyageur Asset Management. It's the tactic known as bargain hunting, or "buying the dips," and the move signaled that many market participants still believe the rally has legs.

"At some point, it's hard to fight the trend, and the trend over the last couple of months has been up," Larson said. "People don't want to be left out."

The Dow fell 65.63, or 0.8 percent, to 8,675.24. The Standard & Poor's 500 index fell 12.98, or 1.4 percent, to 931.76. The Nasdaq composite index fell 10.88, or 0.6 percent, to 1,825.92.

The S&P 500 index and Nasdaq pulled back from their highest levels so far this year, reached Tuesday. Both the S&P and Nasdaq are still up for the year, but the Dow has yet to break back into positive territory for 2009. It got within 35 points, or 0.4 percent, of that break-even point on Tuesday.

There were more than twice as many losing stocks as winners on the New York Stock Exchange Wednesday, where consolidated volume was 5.2 billion shares, down from 5.8 billion a day earlier.

Some of the biggest declines were in energy, industrial and material stocks -- all areas that have benefited in recent days from gains in commodity prices.

Oil prices pulled back Wednesday after a weeklong rally as the government reported a big jump in crude storage levels, signaling continued weak demand.

As crude shed $2.43 to finish at $66.12 a barrel on the New York Mercantile Exchange, Valero Energy Corp. sank $3.98, or 17.8 percent, to $18.40, and Sunoco Inc. dropped $2.27, or 7.5 percent, to $28.03.

Investors in both stocks and energy were displeased with the Commerce Department report showing a smaller-than-expected rise in factory orders. Though it was the second gain in the past three months, orders rose just 0.7 percent in April when analysts had called for a 0.9 percent increase.

Also, the Institute for Supply Management, a trade group of purchasing executives, said the services sector shrank in May at the slowest pace since October. The barometer was below economists' estimates and marked the eighth straight monthly decline.

The rally's staying power will face more tests this week as retailers report May sales results Thursday and as the Labor Department releases jobs data Friday. The monthly jobs report is one of the most closely watched indicators of the economy's health.

Matt King, chief investment officer of Oakland, Calif.-based Bell Investment Advisors, said the market's dips are an opportunity for investors to increase their stock holdings.

"We're trying to caution people that just because the market pulls back doesn't mean we're heading back to the bottom," he said.

Still, analysts are keeping a close eye on rising Treasury yields and a weakening dollar. Investors are concerned those factors, largely an outcome of the government's massive stimulus efforts and the improved outlook on the economy, could also hinder a robust recovery.

Rising yields could lead to higher interest rates on mortgages and other types of consumer loans to which they are linked, while a falling dollar could trigger inflation and restrict the buying power of consumers.

On Wednesday, however, both Treasurys and the dollar rebounded.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, slipped to 3.54 percent from 3.62 percent. Last week, the 10-year yield surged to a six-month high of 3.75 percent.

The dollar gained ground against the euro and the British pound, while gold prices sank.

The Russell 2000 index of smaller companies fell 3.92, or 0.7 percent, to 522.71.

Overseas, Japan's Nikkei stock average added 0.4 percent, Britain's FTSE 100 fell 2.1 percent, Germany's DAX index fell 1.7 percent, and France's CAC-40 fell 2.0 percent.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Traders are betting that an improving economy will reward banks and energy companies.

Stocks rose for the fifth time in six days Thursday after analysts raised their ratings on banks and oil prices rose again, making energy firms look increasingly attractive. Investors were also willing to take more chances on stocks after the government reported that the number of workers continuing to receive unemployment benefits unexpectedly fell for the first time in 20 weeks.

The drop in unemployment rolls, as well as in first-time claims for jobless benefits, gave investors another bit of hope that the economy is finding a more stable footing. The idea that the economy is halting its slide has driven a powerful rally that has lifted the Standard & Poor's 500 index 39.8 percent in three months.


The NYSE DOW closed HIGHER +74.96 points +0.86% on Thursday June 4
Sym Last........ ........Change..........
Dow 8,750.24 +74.96 +0.86%
Nasdaq 1,850.02 +24.10 +1.32%
S&P 500 942.46 +10.70 +1.15%
30-yr Bond 4.5950% +0.1500

NYSE Volume 6,341,319,500 (prior day 6,288,445,500)
Nasdaq Volume 2,508,170,500 (prior day 2,311,343,750)

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,386.94 +3.52 +0.08%
DAX 5,064.80 +10.27 +0.20%
CAC 40 3,312.03 +2.38 +0.07%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,668.96 -72.71 -0.75%
Hang Seng 18,502.77 -73.70 -0.40%
Straits Times 2,362.74 -21.08 -0.88%

http://finance.yahoo.com/news/Financial-energy-stocks-pull-apf-15444813.html

Financial, energy stocks pull market higher

Stocks rebound as traders see promise in bank, energy stocks; jobless claims fall unexpectedly
Tim Paradis and Sara Lepro, AP Business Writers
On Thursday June 4, 2009, 6:13 pm EDT

NEW YORK (AP) -- Traders are betting that an improving economy will reward banks and energy companies.

Stocks rose for the fifth time in six days Thursday after analysts raised their ratings on banks and oil prices rose again, making energy firms look increasingly attractive. Investors were also willing to take more chances on stocks after the government reported that the number of workers continuing to receive unemployment benefits unexpectedly fell for the first time in 20 weeks.

The drop in unemployment rolls, as well as in first-time claims for jobless benefits, gave investors another bit of hope that the economy is finding a more stable footing. The idea that the economy is halting its slide has driven a powerful rally that has lifted the Standard & Poor's 500 index 39.8 percent in three months.

The data arrived a day ahead of the government's monthly tally of job losses -- often seen as the most important report on the economic calendar. The unemployment rate stood at a 25-year high of 8.9 percent in April and economists expect it will rise to 9.2 percent when the May report is issued Friday.

Investors are looking for any sign that unemployment is ebbing because that could help shore up consumer spending, retail sales and the housing market.

"Things seem to have stabilized and people are hunting for any sort of information they can get to determine the next move in the market and the economy," said Jim Sinegal, equity analyst at Morningstar in Chicago.

The Dow Jones industrial average rose 74.96, or 0.9 percent, to 8,750.24. The broader Standard & Poor's 500 index rose 10.70, or 1.2 percent, to 942.46, and the Nasdaq composite rose 24.10, or 1.3 percent, to 1,850.02.

The S&P and Nasdaq are at new highs for the year, and both are showing gains for 2009. The Dow is now down only 26 points for the year after having been in the red since early January.

Bond prices fell after the drop in jobless claims. Fewer worries about the economy made the safety of government debt less attractive. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.71 percent from 3.54 percent. The yield has been fluctuating recently as investors absorbed a mix of economic data.

The gains in financial and energy stocks offset mixed reports from retailers on their May sales.

Banks got a boost after RBC Capital Markets analysts said the worst of the financial crisis is over. The KBW Bank index, which tracks 24 of the nation's largest banks, rose 4.8 percent.

KeyCorp. jumped 90 cents, or 19.6 percent, to $5.50 after an upgrade from RBC, while Goldman Sachs Group Inc. rose $7.32, or 5.2 percent, to $149.47 after a Bernstein Research analyst raised his rating.

The improved data on unemployment and a weak dollar helped push oil prices to fresh highs for the year. Oil and other commodities have been rallying on expectations that an improving economy will lift demand.

Light, sweet crude rose $2.83 to settle at $68.71 a barrel on the New York Mercantile Exchange after climbing as high as $69.56, its highest level since November.

That helped energy companies. Anadarko Petroleum Corp. rose $1.52, or 3.2 percent, to $48.57, while Occidental Petroleum Corp. advanced $1.75, or 2.6 percent, to $68.62.

Retailers including Macy's Inc. and Abercrombie & Fitch Co. lost ground as traders worried that shoppers were still reluctant to spend. A year ago, sales benefited from government stimulus checks. Macy's fell 44 cents, or 3.3 percent, to $12.88, while Abercrombie slid $3.75, or 11.8 percent, to $27.95.

The market's surge this spring since hitting 12-year lows on March 9 has been driven by better-than-expected data. But investors are now looking for clearer indications that the economy is improving.

"If we're on the cusp of a recovery and a convincing recovery, then the stock market makes all the sense in the world," said Michael Darda, an economist with MKM Partners in Greenwich, Conn. "If it turns out there is no recovery until next year, then the market could run into some trouble."

On Wednesday, investors sold stocks following weaker-than-expected reports on factory orders and the services industry.

Scott Jacobson, chief investment strategist at Capstone Sales Advisors in New York, said investors should be careful about expecting that the gains will continue to come.

"It's too late right now to dump all your money into the stock market given where it is," he said.

Investors are likely to remain focused on concerns like unemployment and the dollar. The greenback has fallen steadily since early March as investors' appetite for riskier assets increased. A falling dollar can trigger inflation, hurting consumers' buying power.

In other trading, the Russell 2000 index of smaller companies rose 8.97, or 1.7 percent, to 531.68.

About three stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 5.1 billion shares compared with 5.2 billion traded Wednesday.

Last week, the 10-year yield surged to a six-month high of 3.75 percent on worries over mounting U.S. government debt loads. Investors are on edge because higher rates on mortgages and other loans could stall an economic recovery.

Overseas, Japan's Nikkei stock average fell 0.8 percent. Germany's DAX index rose 0.2 percent while Britain's FTSE 100 and France's CAC-40 each gained less than 0.1 percent.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The Dow Jones industrial average closed the week up 262.80, or 3.1 percent, at 8,763.13. The Standard & Poor's 500 index rose 20.95, or 2.3 percent, to 940.09. The Nasdaq composite index rose 75.09, or 4.2 percent, to 1,849.42.

With unemployment still rising, investors are questioning if stocks should be, too.

Stocks ended a volatile day Friday little changed after the government reported a spike in the unemployment rate to 9.4 percent in May, the highest level in more than 25 years, even as the pace of layoffs eased more than expected.

The Dow Jones industrial average finished up almost 13 points at 8,763.13, just 14 points below where it started the year. The index had advanced as much as 89 points and moved in and out of positive territory for 2009 during the day, but the jump in the unemployment rate proved to be too tough to ignore.


The NYSE DOW closed HIGHER +12.89 points +0.15% on Friday June 5
Sym Last........ ........Change..........
Dow 8,763.13 +12.89 +0.15%
Nasdaq 1,849.42 -0.60 -0.03%
S&P 500 940.09 -2.37 -0.25%
10 Yr Bond(%) 3.8620% +0.1460

NYSE Volume 6,416,525,000 (prior day 6,341,319,500)
Nasdaq Volume 2,315,695,750 (prior day 2,508,170,500)


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,438.56 +51.62 +1.18%
DAX 5,077.03 +12.23 +0.24%
CAC 40 3,339.05 +27.02 +0.82%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 9,768.01 +99.05 +1.02%
Hang Seng 18,679.53 +176.76 +0.96%
Straits Times 2,396.35 +33.61 +1.42%

http://finance.yahoo.com/news/Stock...55514.html?sec=topStories&pos=4&asset=&ccode=

Stocks end flat as unemployment rate checks gains

Stocks finish mixed after job cuts slow in May, but unemployment rate rises to 9.4 percent

* Madlen Read and Sara Lepro, AP Business Writers
* On Friday June 5, 2009, 5:52 pm EDT

NEW YORK (AP) -- With unemployment still rising, investors are questioning if stocks should be, too.

Stocks ended a volatile day Friday little changed after the government reported a spike in the unemployment rate to 9.4 percent in May, the highest level in more than 25 years, even as the pace of layoffs eased more than expected.

The Dow Jones industrial average finished up almost 13 points at 8,763.13, just 14 points below where it started the year. The index had advanced as much as 89 points and moved in and out of positive territory for 2009 during the day, but the jump in the unemployment rate proved to be too tough to ignore.

"When nearly 10 percent of people are out of work, it's hard for me to say things are so positive," said Anthony Conroy, head trader for BNY ConvergEx Group.

Bond prices tumbled again, sending long-term yields to their highest levels this year. Those yields are closely tied to interest rates on mortgages and other kinds of consumer loans.

Investors track unemployment closely since jobless people are far more likely to default on their debts and slash their spending, potentially exacerbating two of the most troubled spots in the economy right now: Consumer spending and the ailing financial industry.

Despite the troubling jobs data, the Dow and other major stock indexes finished the week higher. Although the Dow is still 38.1 percent below its October 2007 high, it has charged ahead 33.9 percent since hitting a 12-year low in early March.

"The markets are feeling better even though the economy is still sick," Conroy said.

The Dow rose 12.89, or 0.2 percent, to 8,763.13. The Standard & Poor's 500 index fell 2.37, or 0.3 percent, to 940.09, and the Nasdaq composite index fell 0.60, or less than 0.1 percent, to 1,849.42.

The Dow is up 3 percent for the week, while the S&P 500 is up 2 percent and the Nasdaq is up 3.7 percent. It was the major indexes' third straight week of gains.

The Labor Department said employers cut 345,000 jobs in May, far less than the 520,000 economists predicted, a hopeful sign for the job market. But the report also showed that the unemployment rate surged to 9.4 percent from 8.9 percent in April, suggesting that companies are still reluctant to hire.

The jobless rate is considered a "lagging" indicator, meaning that it usually recovers after the rest of the economy does. But economists expect the rate to keep rising.

"That is difficult to get comfortable with," said Richard Hughes, co-president of Portfolio Management Consultants.

May's job losses, the fewest since September, appeared too good to be true to some investors. Speculation swept the trading floors Friday morning that the government had misreported the job cut figure, sending stocks lower in midmorning trading before the Labor Department shot down the rumor.

Bond prices plunged as investors viewed the jobs data as a positive sign for the economy and shifted more funds out of bonds. Investors tend to load up on bonds, which are considered a safe-haven investment, during times of economic distress, and sell them when signs of recovery emerge.

The yield on the benchmark 10-year Treasury note, a widely used benchmark for interest rates on mortgages and other kinds of loans, jumped to a fresh high for the year of 3.91 percent from 3.71 percent late Thursday. By late Friday, the 10-year note's yield was 3.84 percent.

"There is pretty good evidence that the recession is bottoming," said Doug Roberts, chief investment strategist of ChannelCapitalResearch.com. "The real question is the type of recovery. Just because we're reaching a bottom doesn't mean a bounce is imminent."

Next week, investors will decide whether to extend the market's advance or cash in profits as they confront data from the Federal Reserve on regional economies; a report on retail sales from the Commerce Department; and a reading on consumer sentiment from the University of Michigan.

Stocks have rallied sharply over the past three months as improving economic data and better performance at banks gives investors hope that the recession could end some time this year.

But the banking system is hardly on firm footing. On Friday, The Wall Street Journal reported that the Federal Deposit Insurance Corp. is pressing for a management shake-up at Citigroup Inc. The embattled New York-based bank has already received $45 billion in government rescue funds. Last month, the government determined that it would need to raise an additional $5.5 billion as a buffer against future losses.

Citigroup fell 11 cents, or 3.1 percent, to $3.46.

Many analysts believe the stock market should keep rising, but in recent weeks investors have become worried about rising commodity prices and the sinking dollar, which can lead to inflation. Those inflation fears are lifting Treasury yields, which in turn are boosting mortgage rates and impeding borrowers' plans to refinance.

Arthur Hogan, chief market analyst at Jefferies & Co., said he has been recommending to clients that they invest in industries that do well if inflation accelerates. That means companies dealing in hard assets, such as energy, materials and industrial companies. Hogan has been advising against investing in financial firms and companies that rely on discretionary spending by consumers, such as retailers.

Oil prices briefly surpassed $70 a barrel following the jobs report, but retreated to close down 37 cents at $68.44 a barrel.

In other U.S. trading, the Russell 2000 index of smaller companies fell 1.32, or 0.3 percent, to 530.36.

Declining stocks narrowly outnumbered advancers on the New York Stock Exchange, where consolidated volume came to 5.2 billion shares, up from 5.1 billion Thursday.

Overseas, Japan's Nikkei stock average gained 1.0 percent. Britain's FTSE 100 rose 1.2 percent, Germany's DAX index rose 0.2 percent, and France's CAC-40 rose 0.8 percent.

The Dow Jones industrial average closed the week up 262.80, or 3.1 percent, at 8,763.13. The Standard & Poor's 500 index rose 20.95, or 2.3 percent, to 940.09. The Nasdaq composite index rose 75.09, or 4.2 percent, to 1,849.42.

The Russell 2000 index, which tracks the performance of small company stocks, rose 28.78, or 5.7 percent, for the week to 530.36.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 9,654.77, up 246.52, or 2.6 percent, for the week. A year ago, the index was at 14,339.94.
873

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Investors are finding more than one way to bet on an improving economy.

Stocks ended a quiet day mostly higher Tuesday as traders bought commodities and technology stocks.

The rise in commodities reflects hopes that economic activity will improve and boost the appetite for basic materials. A falling dollar also helped push commodity prices higher, and oil settled above $70 a barrel for the first time this year.

The NYSE DOW closed LOWER -1.43 points -0.02% on Tuesday June 9
Sym Last........ ........Change..........
Dow 8,763.06 -1.43 -0.02%
Nasdaq 1,860.13 +17.73 +0.96%
S&P 500 942.43 +3.29 +0.35%
30-yr Bond 4.6530% +0.0180

NYSE Volume 5,242,871,500
Nasdaq Volume 2,177,677,250


Europe
Symbol... Last...... .....Change.......
FTSE 100 4,404.79 -0.43 -0.01%
DAX 4,997.86 -6.86 -0.14%
CAC 40 3,296.73 +7.07 +0.21%

http://finance.yahoo.com/news/Technology-commodity-shares-apf-15482972.html

Technology, commodity shares gain; Dow ends flat

Most stocks rise in quiet trading as Texas Instruments helps tech; Commodities lift materials
Tim Paradis, AP Business Writer
On Tuesday June 9, 2009, 5:42 pm EDT

NEW YORK (AP) -- Investors are finding more than one way to bet on an improving economy.

Stocks ended a quiet day mostly higher Tuesday as traders bought commodities and technology stocks.

The rise in commodities reflects hopes that economic activity will improve and boost the appetite for basic materials. A falling dollar also helped push commodity prices higher, and oil settled above $70 a barrel for the first time this year.

Technology stocks rose as an improved profit forecast from chip maker Texas Instruments Inc. raised hopes that demand could also increase for electronics. Intel Corp. and Cisco Systems Inc. have also issued optimistic comments recently, bolstering the case for technology shares.

Analysts said the third consecutive day of modest moves in the market was a welcome sign after a 39.3 percent surge in the Standard & Poor's 500 index from 12-year lows three months ago.

Even if those gains continue to hold up, many market watchers doubt that the market will continue to march ahead with anything like the conviction it showed this spring.

"The next three months are just going to be a long, hot flat summer. I don't see a catalyst," said Scott Armiger, portfolio manager at Christiana Bank & Trust in Greenville, Del.

The Dow Jones industrial average fell 1.43, or less than 0.1 percent, to 8,763.06. The broader S&P 500 index rose 3.29, or 0.4 percent, to 942.43, and the technology-heavy Nasdaq composite index rose 17.73, or 1 percent, to 1,860.13.

Robust demand at a government auction of three-year notes reassured investors who have worried in recent weeks that rising interest rates would choke off a recovery by making it more expensive for consumers to get loans.

Another test of investor appetite for debt comes Wednesday with an auction of $19 billion in 10-year notes.

The price of the benchmark 10-year Treasury note rose slightly, pushing its yield down to 3.86 percent from 3.89 percent Monday.

Financial shares were mixed after the Treasury Department said it would allow 10 large banks repay $68 billion in federal bailout money. Those companies are among the 19 given money from a rescue fund created last October at the height of the financial crisis.

"It's part of the healing process," said Rob Lutts, chief investment officer at Cabot Money Management.

Among banks repaying loans, American Express Co. rose $1.28, or 5 percent, to $26.93, while JPMorgan Chase & Co. slipped 13 cents to $35.26.

Texas Instruments rose $1.25, or 6.3 percent, to $21.02.

U.S. Steel Corp. rose $2.76, or 7.9 percent, to $37.82. Schlumberger Ltd., which works in oil fields, rose $1.52, or 2.7 percent, to $58.85.

The Russell 2000 index of smaller companies rose 3.14, or 0.6 percent, to 527.93.

About three stocks rose for every two that fell on the New York Stock Exchange, where consolidated volume slipped to 4.3 billion shares from 4.4 billion Monday.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

For the week, the Dow edged up 0.4 percent. It was the fourth straight weekly gain for the blue chips and the 12th of the last 14.

The S&P 500 index rose 0.7 percent for the week and the Nasdaq added 0.5 percent. The indexes are all positive for the year.

The stock market's rally is on hold and it's not clear what might get it moving again.

Stock indicators barely budged this week after big gains in the prior week. The Dow Jones industrial average did manage to push into the black for the year with a modest gain on Friday but many traders are still cautious.

The Dow Jones industrial average rose 28.34, or 0.3 percent, to 8,799.26. It was the Dow's highest close since Jan. 6.

The broader S&P 500 index rose 1.32, or 0.1 percent, to 946.21, and the Nasdaq composite index fell 3.57, or 0.2 percent, to 1,858.80.


The NYSE DOW closed HIGHER +28.34 points +0.32% on Friday June 12
Sym Last........ ........Change..........
Dow 8,799.26 +28.34 +0.32%
Nasdaq 1,858.80 -3.57 -0.19%
S&P 500 946.21 +1.32 +0.14%
30-yr Bond 4.6330% -0.0590

NYSE Volume 5,198,557,000
Nasdaq Volume 2,065,456,125

Europe
Symbol... Last...... .....Change.......
FTSE 100 4,441.95 -19.92 -0.45%
DAX 5,069.24 -38.02 -0.74%
CAC 40 3,326.14 -8.80 -0.26%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 10,135.82 +154.49 +1.55%
Hang Seng 18,889.68 +98.65 +0.52%
Straits Times 2,377.07 -4.74 -0.20%

http://finance.yahoo.com/news/Stocks-end-mixed-as-commodity-apf-15516041.html?.v=1

Stocks end mixed as commodity, tech stocks retreat

Stocks end mixed as lower oil weighs on commodities; technology stocks slide after rally
Tim Paradis, AP Business Writer
On Friday June 12, 2009, 5:34 pm EDT

NEW YORK (AP) -- The stock market's rally is on hold and it's not clear what might get it moving again.

Stock indicators barely budged this week after big gains in the prior week. The Dow Jones industrial average did manage to push into the black for the year with a modest gain on Friday but many traders are still cautious.

The Dow Jones industrial average rose 28.34, or 0.3 percent, to 8,799.26. It was the Dow's highest close since Jan. 6.

The broader S&P 500 index rose 1.32, or 0.1 percent, to 946.21, and the Nasdaq composite index fell 3.57, or 0.2 percent, to 1,858.80.

For the week, the Dow edged up 0.4 percent. It was the fourth straight weekly gain for the blue chips and the 12th of the last 14.

The S&P 500 index rose 0.7 percent for the week and the Nasdaq added 0.5 percent. The indexes are all positive for the year.

The continuing crop of better-than-expected economic news has lost its ability to incite the kinds of big gains the market was enjoying back in March, early in a three-month rally that has brought the Standard & Poor's index almost 40 percent.

Those kinds of gains might normally take years to occur, so it's understandable that traders would become tired of hitting the "buy" button. Also, the market's enthusiasm about the economy has been checked recently by unease about inflation and rising interest rates.

The bond market exercised unusual control over stocks this week as investors worried that the Treasury Department was running low on buyers for U.S. debt. While a successful bond auction Thursday eased some of those concerns, investors are still nervous that Washington might have to entice buyers with higher interest rates.

Besides determining the government's own borrowing costs, bond yields are also used as a benchmark for consumer loans and can influence how much people borrow to finance big purchases like homes. The 10-year Treasury note, which is closely tied to home mortgage rates, has risen to 3.79 from 3.71 percent in little more than a week.

Rising interest rates are worrisome because they could stomp out the economy's attempts to recover from the recession, which began in December 2007.

With little to point them in either direction, stocks zigzagged in a tight range late in the day Friday as commodity and technology stocks gave up some of their recent gains.

"We ran at sprinters' speed and now we're taking a couple jogs around the track to see if we can sprint again," said David Darst, chief investment strategist at Morgan Stanley Smith Barney.

Bond prices mostly rose Friday, pushing yields down. The yield on the 10-year Treasury note fell to 3.79 percent from 3.86 percent late Thursday.

The dollar rose against other major currencies, while gold prices fell.

Rick Bensignor, chief market strategist at Execution LLC, said the market likely would need big news such as a further stabilization in banks to push higher. Otherwise, some gains could come as portfolio managers worried about falling behind the major indexes are forced to buy in. But he expects the market will give back some of its gains because it has risen so far so fast.

"Bulls think this is nothing more than a resting stop," he said. "Right now clearly the tug of war remains in place."

Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where volume came to a light 858 million shares, compared with 1.2 billion Thursday.

The Russell 2000 index of smaller companies rose 0.76, or 0.1 percent, to 526.84.

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