NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

The Federal Reserve took financial markets for a ride Wednesday, pushing stock prices up in the morning then sending them down in afternoon.

Prices surged on congressional testimony by Fed chairman Ben Bernanke early in the day that suggested the central bank would not end its massive economic stimulus program any time soon. But then minutes of a Fed meeting were released suggesting the stimulus could be scaled back as early as next month if the economy picks up, and stocks began dropping fast.

The Fed minutes showed that some policymakers favored tapering a bond-buying program. That prompted traders to dump U.S. government bonds, sending their interest rates, or yields, higher.

The yield on the benchmark 10-year Treasury note rose above 2 percent for the first time since March 14, to 2.03 percent from 1.93 percent the day before.

The Fed is buying $85 billion worth of bonds every month as part of its stimulus program. That has kept interest rates low and encouraged investors to put money into stocks and other riskier assets instead of bonds. If the Fed slows down its bond purchases, investors fear, it could lead to an outpouring of money from the stock market and back into bonds.

The Dow Jones industrial average ended the day down 80.41 points, or 0.5 percent, to 15,307.17. Earlier, the index had risen as much as 154 points after Bernanke started speaking to lawmakers.

"If you had any doubts about the influence of the Fed, you only have to look at the roller coaster that followed Bernanke's testimony this morning and the release to Fed minutes this afternoon," said David Kelly, chief global strategist at J.P. Morgan Funds.

The minutes of the April 30-May 1 meeting showed that "a number" of members expressed a willingness to scale back the Fed's bond purchases, perhaps as soon as June, if the economy accelerates. The Fed next meets June 18-19.

The Standard and Poor's 500 fell 13.81 points to 1,655.35, a decline of 0.8 percent.

Earlier in the day, Bernanke had told lawmakers it was too soon for the central bank to pull back on its stimulus programs. Investors were also encouraged by news that sales of previously occupied U.S. homes rose last month to the highest level in three and a half years.

"It's up, up and away," said Stephen Carl, head of stock trading at the Williams Capital Group, as stocks were soaring shortly after Bernanke stopped speaking.

In addition to buying bonds, the Fed has been keeping short-term interest rates near zero to encourage people and businesses to borrow and spend more.

The Russell 2000 index of small-company stocks fell 16.52 points to 982.26, a loss of 1.7 percent.

The Nasdaq composite was down 38.82 points at 3,463.30, or 1 percent.

The NYSE DOW closed LOWER ▼ -80.41 points or ▼ -0.52% Wednesday, 22 May 2013
Symbol …........Last ......Change.....
Dow_Jones 15,307.17 ▼ -80.41 ▼ -0.52%
Nasdaq___ 3,463.30 ▼ -38.82 ▼ -1.11%
S&P_500__ 1,655.35 ▼ -13.81 ▼ -0.83%
30_Yr_Bond 3.209 ▲ 0.06 ▲ 1.91%

NYSE Volume 4,900,335,000
Nasdaq Volume 2,114,605,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,840.27 ▲ 36.40 ▲ 0.53%
DAX_____ 8,530.89 ▲ 58.69 ▲ 0.69%
CAC_40__ 4,051.11 ▲ 14.93 ▲ 0.37%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5,142.10 ▼ -14.10 ▼ -0.27%
Shanghai_Comp 2,302.40 ▼ -2.71 ▼ -0.12%
Taiwan_Weight 8,398.84 ▲ 15.79 ▲ 0.19%
Nikkei_225____ 15,627.26 ▲ 246.24 ▲ 1.60%
Hang_Seng____ 23,261.08 ▼ -105.29 ▼ -0.45%
Strait_Times___ 3,454.37 ▲ 10.47 ▲ 0.30%
NZX_50_Index__ 4,610.18 ▲ 19.34 ▲ 0.42%

http://finance.yahoo.com/news/stocks-fall-news-fed-weighed-190707454.html

Stocks fall on news Fed weighed cutting stimulus

Stocks fall, interest rates rise after Fed minutes show policymakers weighed stimulus pullback

By Bernard Condon, AP Business Writer

The Federal Reserve took financial markets for a ride Wednesday, pushing stock prices up in the morning then sending them down in afternoon.

Prices surged on congressional testimony by Fed chairman Ben Bernanke early in the day that suggested the central bank would not end its massive economic stimulus program any time soon. But then minutes of a Fed meeting were released suggesting the stimulus could be scaled back as early as next month if the economy picks up, and stocks began dropping fast.

The Fed minutes showed that some policymakers favored tapering a bond-buying program. That prompted traders to dump U.S. government bonds, sending their interest rates, or yields, higher.

The yield on the benchmark 10-year Treasury note rose above 2 percent for the first time since March 14, to 2.03 percent from 1.93 percent the day before.

The Fed is buying $85 billion worth of bonds every month as part of its stimulus program. That has kept interest rates low and encouraged investors to put money into stocks and other riskier assets instead of bonds. If the Fed slows down its bond purchases, investors fear, it could lead to an outpouring of money from the stock market and back into bonds.

The Dow Jones industrial average ended the day down 80.41 points, or 0.5 percent, to 15,307.17. Earlier, the index had risen as much as 154 points after Bernanke started speaking to lawmakers.

"If you had any doubts about the influence of the Fed, you only have to look at the roller coaster that followed Bernanke's testimony this morning and the release to Fed minutes this afternoon," said David Kelly, chief global strategist at J.P. Morgan Funds.

The minutes of the April 30-May 1 meeting showed that "a number" of members expressed a willingness to scale back the Fed's bond purchases, perhaps as soon as June, if the economy accelerates. The Fed next meets June 18-19.

The Standard and Poor's 500 fell 13.81 points to 1,655.35, a decline of 0.8 percent.

Earlier in the day, Bernanke had told lawmakers it was too soon for the central bank to pull back on its stimulus programs. Investors were also encouraged by news that sales of previously occupied U.S. homes rose last month to the highest level in three and a half years.

"It's up, up and away," said Stephen Carl, head of stock trading at the Williams Capital Group, as stocks were soaring shortly after Bernanke stopped speaking.

In addition to buying bonds, the Fed has been keeping short-term interest rates near zero to encourage people and businesses to borrow and spend more.

The Russell 2000 index of small-company stocks fell 16.52 points to 982.26, a loss of 1.7 percent.

The Nasdaq composite was down 38.82 points at 3,463.30, or 1 percent.

In addition to stimulus from the Fed, other factors have been pushing the stock market higher, including a rebounding housing market, a pickup in hiring and strong earnings at big U.S. companies. On Wednesday, S&P Capital IQ reported that earnings in S&P 500 companies had reached a quarterly record.

Investors don't like when the Fed pulls back from stimulus policies and raised interest rates because it typically has slowed the economy, and has even led to recessions. But JPMorgan's Kelly notes that when interest rates are very low like now, history suggests interest rates hikes won't hurt the stock market that much because it means the economy is getting stronger.

"I don't think that (higher) interest rates will prove bad for the stock market," he said. "But the stock market has been hypnotized into believing that the only thing keep it afloat is the Fed."

Among stocks making big moves:

””Bristol-Myers Squibb jumped 5 percent, or $2.34, to $46.40 after a Citigroup analyst raised his rating on the drugmaker. The analyst said the company could be a big winner with a group of cancer treatments under development.

””Saks rose $1.83 to $15.50, or 13 percent, after The New York Post reported the luxury retailer had hired Goldman Sachs to explore options for the company, including a possible sale. A spokesman for Saks declined to comment.

””Target fell $2.86, or 4 percent, to $68.40 after announcing a 26 percent drop in first-quarter profits. The company also said full-year earnings may come in lower than previously expected.

On Tuesday, stocks rose after James Bullard, president of the St. Louis branch of the Federal Reserve, told an audience in Germany that the central bank should continue buying bonds.

The price of gold fell $10.20 to $1,367.40 an ounce, a drop of 0.7 percent. Crude oil fell $1.90 to $94.28 a barrel on the New York Mercantile Exchange.

 

[bigdog]

Source: http://finance.yahoo.com

Investors recovered their poise after a shaky start to trading on Wall Street that sent stocks sharply lower.

U.S. markets plummeted immediately after the opening bell Thursday following a global slump prompted partly by an unexpected slowdown in Chinese manufacturing. Concern that the Federal Reserve might ease back on its economic stimulus program sooner than expected had also riled investors.

The dip gave investors who missed this year's stock market surge an opportunity to get into the market, and by midday the market had recouped most of its early loss. Stocks even climbed into positive territory by midday, then ended the day marginally lower.

"Most institutions, most hedge funds and most individuals have watched the market go up without them, so the dips are being bought," said Jim Russell, regional investment director at U.S. Bank. "There's a very strong case for U.S. stocks."

For the most part, the U.S. stock market has been going up steadily since the beginning of the year, with only infrequent declines. Investors' optimism has been stoked by a pickup in hiring at U.S. employers, a recovery in the housing market and record profits at U.S. corporations.

All that has helped push the Dow up 16.7 percent this year. The Standard & Poor's 500 index is 15.7 percent than at the start of 2013.

On Thursday, however, trading was volatile.

The Dow Jones industrial average ended the day just 12.67 points lower, or 0.1 percent, at 15,294.50. It fell as much as 127 points during the first hour of trading.

A sell-off in global markets came after minutes from the latest Fed meeting, released Wednesday afternoon, indicated that several policymakers were leaning toward slowing the central bank's bond-buying program as early as June if the economy continues to recover.

The central bank is spending $85 billion a month buying bonds. That program has been keeping interest rates low in an effort to encourage borrowing, spending and investing. It's also meant to encourage investors to buy risky assets like stocks.

Investors were also unsettled by the report that showed manufacturing in China, the world's No. 2 economy, unexpectedly shrank this month. HSBC Corp. said the preliminary version of its monthly purchasing managers index had dropped to a seven-month low. China's booming economy has been a major driver of global growth in recent years and investors worry when they see signs that it's slowing down.

Stocks fell sharply in Asia Thursday. Japan's Nikkei index dropped 7.3 percent after news was released about the slowdown in Chinese manufacturing. The declines extended to Europe, where Germany's DAX index, which has been at a record high, slid 2.1 percent.

The sell-off looked set to continue when trading opened in New York, but the market quickly hit bottom and reversed course.

Some investors also reevaluated the concern about the Fed easing, or tapering, its economic stimulus program.

Any pullback of the Fed's stimulus should be seen as a positive signal because it would mean that the U.S. economy is getting stronger, said Joe Quinlan, chief market strategist at U.S. Trust.

The NYSE DOW closed LOWER ▼ -12.67 points or ▼ -0.08% Thursday, 23 May 2013
Symbol …........Last ......Change.....
Dow_Jones 15,294.50 ▼ -12.67 ▼ -0.08%
Nasdaq___ 3,459.42 ▼ -3.88 ▼ -0.11%
S&P_500__ 1,650.51 ▼ -4.84 ▼ -0.29%
30_Yr_Bond 3.197 ▼ -0.01 ▼ -0.37%

NYSE Volume 4,435,808,500
Nasdaq Volume 1,768,799,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,696.79 ▼ -143.48 ▼ -2.10%
DAX_____ 8,351.98 ▼ -178.91 ▼ -2.10%
CAC_40__ 3,967.15 ▼ -83.96 ▼ -2.07%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 5,040.80 ▼ -101.30 ▼ -1.97%
Shanghai_Comp 2,275.67 ▼ -26.74 ▼ -1.16%
Taiwan_Weight 8,237.83 ▼ -161.01 ▼ -1.92%
Nikkei_225____ 14,483.98 ▼ -1143.28 ▼ -7.32%
Hang_Seng____ 22,669.68 ▼ -591.40 ▼ -2.54%
Strait_Times___ 3,390.53 ▼ -63.84 ▼ -1.85%
NZX_50_Index__ 4,588.59 ▼ -21.59 ▼ -0.47%

http://finance.yahoo.com/news/stocks-edge-lower-investors-reassess-205412590.html

Stocks edge lower as investors reassess Fed fears

Stocks recover from an early swoon as investors reassess fears that Fed will slow stimulus

By Steve Rothwell, AP Markets Writer

Investors recovered their poise after a shaky start to trading on Wall Street that sent stocks sharply lower.

U.S. markets plummeted immediately after the opening bell Thursday following a global slump prompted partly by an unexpected slowdown in Chinese manufacturing. Concern that the Federal Reserve might ease back on its economic stimulus program sooner than expected had also riled investors.

The dip gave investors who missed this year's stock market surge an opportunity to get into the market, and by midday the market had recouped most of its early loss. Stocks even climbed into positive territory by midday, then ended the day marginally lower.

"Most institutions, most hedge funds and most individuals have watched the market go up without them, so the dips are being bought," said Jim Russell, regional investment director at U.S. Bank. "There's a very strong case for U.S. stocks."

For the most part, the U.S. stock market has been going up steadily since the beginning of the year, with only infrequent declines. Investors' optimism has been stoked by a pickup in hiring at U.S. employers, a recovery in the housing market and record profits at U.S. corporations.

All that has helped push the Dow up 16.7 percent this year. The Standard & Poor's 500 index is 15.7 percent than at the start of 2013.

On Thursday, however, trading was volatile.

The Dow Jones industrial average ended the day just 12.67 points lower, or 0.1 percent, at 15,294.50. It fell as much as 127 points during the first hour of trading.

A sell-off in global markets came after minutes from the latest Fed meeting, released Wednesday afternoon, indicated that several policymakers were leaning toward slowing the central bank's bond-buying program as early as June if the economy continues to recover.

The central bank is spending $85 billion a month buying bonds. That program has been keeping interest rates low in an effort to encourage borrowing, spending and investing. It's also meant to encourage investors to buy risky assets like stocks.

Investors were also unsettled by the report that showed manufacturing in China, the world's No. 2 economy, unexpectedly shrank this month. HSBC Corp. said the preliminary version of its monthly purchasing managers index had dropped to a seven-month low. China's booming economy has been a major driver of global growth in recent years and investors worry when they see signs that it's slowing down.

Stocks fell sharply in Asia Thursday. Japan's Nikkei index dropped 7.3 percent after news was released about the slowdown in Chinese manufacturing. The declines extended to Europe, where Germany's DAX index, which has been at a record high, slid 2.1 percent.

The sell-off looked set to continue when trading opened in New York, but the market quickly hit bottom and reversed course.

Some investors also reevaluated the concern about the Fed easing, or tapering, its economic stimulus program.

Any pullback of the Fed's stimulus should be seen as a positive signal because it would mean that the U.S. economy is getting stronger, said Joe Quinlan, chief market strategist at U.S. Trust.

"When the Fed starts to taper, the fundamentals of the U.S. economy have improved even further than we have already seen," said Quinlan. "The Fed tapering is actually a good story for U.S. equities and the economy."

Encouraging news about the U.S. economy also helped the case for stock market bulls Thursday.

Sales of new homes rose in April to the second-highest level since the summer of 2008, the Commerce Department reported Thursday. Also, the median price for a new home hit a record high, another sign that housing is recovering.

There was good news on the labor market, too.

The number of Americans applying for unemployment benefits fell 23,000 last week to 340,000, a level consistent with solid job growth, the Labor Department said. That suggests employers are laying off fewer workers. The decline in claims has coincided with steady job growth over the past six months.

In other U.S. stock trading, the Standard & Poor's 500 index closed down 4.84 points to 1,650.51, or 0.3 percent. The Nasdaq composite fell 3.88 points, or 0.1 percent, to 3,459.42.

In commodities trading, the price of crude oil fell 3 cents to $94.25 a barrel. Gold rose $24.40, or 1.8 percent, to $1,391.80 an ounce. The dollar fell against the euro and the yen.

In U.S. government bond trading, the yield on the benchmark 10-year Treasury note edged down to 2.02 percent from 2.04 percent. The yield on the note falls when the bond's price rises.

Among stocks making big moves, Ralph Lauren fell $4.37, or 2.3 percent, to $183.69. The apparel seller reported revenue that fell short of what financial analysts were expecting. Sluggish economic conditions and the decision to cut certain businesses reduced sales.

PC maker Hewlett-Packard surged $3.63, or 17.1 percent, to $24.86 after the company delivered second-quarter earnings that topped the estimates of both its own management and financial analysts.

Dollar Tree rose $1.82, or 3.8 percent, to $50.19 after the discount store chain said its earnings climbed 15 percent as customers spent more. The earnings beat the expectations of Wall Street analysts who follow the company.

 

[bigdog]

Source: http://finance.yahoo.com

Major stock indexes closed out their first weekly loss in a month in quiet trading Friday.

The Standard & Poor's 500 index dropped 0.91 of a point to close at 1,649.60. The Dow Jones industrial average rose 8.60 points to 15,303, a gain of 0.1 percent. Procter & Gamble supported the Dow with an increase of 4 percent.

Both indexes had their first weekly losses since the week ending April 19. A disappointing manufacturing report out of China and a sharp fall in Japan's stock market rattled investors' nerves this week. But anxiety over the Federal Reserve's bond-buying program was the main culprit. Some investors interpreted comments from Fed officials to mean that the bank may start pulling its support for the economy sooner than they expected.

The S&P 500, widely used by mutual funds as a proxy for the stock market, lost 1.1 percent for the week. It's still up 15.7 percent for the year.

Marty Leclerc, the managing partner of Barrack Yard Advisors, an investment firm in Bryn Mawr, Pa., said the weekly drop wasn't cause for concern. Even market rallies have to take the occasional break, he said.

"It's up like a rocket blast this year," Leclerc said of the stock market. "For there to be a little bit of a pullback is perfectly understandable."

The market headed lower at the start of trading on Friday, then spent the rest of the day slowly recovering ground. By the closing bell, market indexes were roughly back to where they started.

Procter & Gamble announced late Thursday that it's bringing back its former CEO, A.G. Lafley, to run the company. The world's largest consumer-products maker, whose brands include Tide and Crest, is trying to increase sales in the face of tough competition. P&G rose $3.18 to $81.88.

Sears plunged 14 percent after the department-store chain reported a steep quarterly loss and slumping sales after the market closed Thursday. Sears lost $7.92 to $50.25.

The Nasdaq composite slipped 0.27 of a point to 3,459.14.

Eight of the 10 industry groups in the S&P 500 fell. Only financial stocks and consumer staples makers rose.

The NYSE DOW closed HIGHER ▲ 8.60 points or ▲ 0.06% Friday, 24 May 2013
Symbol …........Last ......Change.....
Dow_Jones 15,303.10 ▲ 8.60 ▲ 0.06%
Nasdaq___ 3,459.14 ▼ -0.27 ▼ -0.01%
S&P_500__ 1,649.60 ▼ -0.91 ▼ -0.06%
30_Yr_Bond 3.170 ▼ -0.02 ▼ -0.69%

NYSE Volume 3,037,142,250
Nasdaq Volume 1,419,622,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,654.34 ▼ -42.45 ▼ -0.63%
DAX_____ 8,305.32 ▼ -46.66 ▼ -0.56%
CAC_40__ 3,956.79 ▼ -10.36 ▼ -0.26%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,964.30 ▼ -76.50 ▼ -1.52%
Shanghai_Comp 2,288.53 ▲ 12.87 ▲ 0.57%
Taiwan_Weight 8,209.78 ▼ -28.05 ▼ -0.34%
Nikkei_225____ 14,612.45 ▲ 128.47 ▲ 0.89%
Hang_Seng____ 22,618.67 ▼ -51.01 ▼ -0.23%
Strait_Times___ 3,393.17 ▼ -61.20 ▼ -1.77%
NZX_50_Index__ 4,526.24 ▼ -62.35 ▼ -1.36%

http://finance.yahoo.com/news/stock...;_ylg=X3oDMTBhYWM1a2sxBGxhbmcDZW4tVVM-;_ylv=3

Stocks barely budge; market ends week with loss

Stocks trade flat; market ends week lower for the first time since April

Matthew Craft, AP Business Writer

Major stock indexes closed out their first weekly loss in a month in quiet trading Friday.

The Standard & Poor's 500 index dropped 0.91 of a point to close at 1,649.60. The Dow Jones industrial average rose 8.60 points to 15,303, a gain of 0.1 percent. Procter & Gamble supported the Dow with an increase of 4 percent.

Both indexes had their first weekly losses since the week ending April 19. A disappointing manufacturing report out of China and a sharp fall in Japan's stock market rattled investors' nerves this week. But anxiety over the Federal Reserve's bond-buying program was the main culprit. Some investors interpreted comments from Fed officials to mean that the bank may start pulling its support for the economy sooner than they expected.

The S&P 500, widely used by mutual funds as a proxy for the stock market, lost 1.1 percent for the week. It's still up 15.7 percent for the year.

Marty Leclerc, the managing partner of Barrack Yard Advisors, an investment firm in Bryn Mawr, Pa., said the weekly drop wasn't cause for concern. Even market rallies have to take the occasional break, he said.

"It's up like a rocket blast this year," Leclerc said of the stock market. "For there to be a little bit of a pullback is perfectly understandable."

The market headed lower at the start of trading on Friday, then spent the rest of the day slowly recovering ground. By the closing bell, market indexes were roughly back to where they started.

Procter & Gamble announced late Thursday that it's bringing back its former CEO, A.G. Lafley, to run the company. The world's largest consumer-products maker, whose brands include Tide and Crest, is trying to increase sales in the face of tough competition. P&G rose $3.18 to $81.88.

Sears plunged 14 percent after the department-store chain reported a steep quarterly loss and slumping sales after the market closed Thursday. Sears lost $7.92 to $50.25.

The Nasdaq composite slipped 0.27 of a point to 3,459.14.

Eight of the 10 industry groups in the S&P 500 fell. Only financial stocks and consumer staples makers rose.

The stock market slipped Friday despite an encouraging report on U.S. manufacturing. The government said orders for long-lasting goods rebounded in April, helped by demand for aircraft and stronger business spending. The report suggests economic growth may hold steady this spring.

Until this week, signs of slow but steady economic growth and record profits for big companies had propelled stock-market indexes to all-time highs.

All but 11 companies in the S&P 500 have posted their first-quarter earnings, and the results have turned out much better than expected. Nearly seven of 10 have reported higher earnings than analysts had estimated. Overall profits in the first quarter are on track to climb 5 percent over the year before.

In the market for U.S. government bonds, the yield on the 10-year Treasury note dipped to 2.01 percent from 2.02 percent late Thursday.

The price of crude oil slipped 10 cents to settle at $94.15 a barrel, ending with a drop of $1.87 for the week. Gold lost $5.20 to $1,386.60 an ounce.

Trading was light ahead of the long weekend. U.S. financial markets will be closed Monday for Memorial Day.

Among other stocks in the news Friday:

”” Intuitive Surgical gained 5 percent after a jury decided in favor of the maker of robotic medical equipment in the first of many lawsuits filed against the company. The plaintiffs argued that Intuitive was negligent in training doctors to use its equipment. Intuitive's stock rose $23.07 to $501.53.

”” Titan Machinery plunged 9 percent. The company, which deals in agricultural and construction equipment, said late Thursday that weaker revenue will lead it to a wider quarterly loss than it had expected. Titan's stock lost $2.10 to $20.40.

2311

 

[bigdog]

Source: http://finance.yahoo.com

Markets in Britain and the U.S. were closed for public holidays on Monday May 27

With U.S. markets closed, world stocks ended Monday mostly higher ”” with Japan the notable exception as the Nikkei sold off sharply for the second time in a week.

The decline came after Bank of Japan Governor Haruhiko Karoda said over the weekend Japanese interest rates could rise without causing instability, despite the country's large national debt.

The Nikkei 225 shed 3.2 percent to close at 14,142.65, with exporters hit hardest due to the rising yen. That's the reverse of the picture for most of this year, as yen losses have helped propel the index to a 36 percent gain since January.

Among major losers Monday, Nissan Motor Corp. dropped 6.8 percent. Yamaha Motor Co. tumbled 7.9 percent. Sony Corp. slid 6.3 percent.

The index also lost 7.3 percent on May 23, as investors have begun to wonder whether potential benefits of Prime Minister Shinzo Abe's aggressive campaign to lift consumer prices and encourage borrowing and spending have already been priced in.

In European trading, Germany's DAX rose 0.9 percent to 8,381.30. France's CAC-40 advanced 0.9 percent to 3,994.25. Markets in Britain and the U.S. were closed for public holidays.

European Central Bank board member Joerg Asmussen said in a speech in Berlin that with the Eurozone countries in recession, the bank would continue to pursue easy monetary policy "as long as necessary."

Cees Smit, director at Amsterdam brokerage Today's Vermogensbeheer in Amsterdam, said most of the excitement in European stocks came in the morning.

"We were looking at Japan earlier and it was surprising how well European markets were reacting," he said.

He said trade had quieted by the afternoon and stocks drifted off their earlier highs as investors began contemplating U.S. May unemployment figures due out Tuesday.

Other global markets were mixed.

Hopes for a global economic recovery were undermined last week when a survey on China's monthly manufacturing pace showed a bigger-than-expected decline. Less-than-clear indications from the U.S. Federal Reserve on whether it might scale back its aggressive bond-buying program, dubbed quantitative easing or QE, also caused investors to curb their enthusiasm.

The NYSE DOW closed HIGHER ▲ 8.60 points or ▲ 0.06% on Friday, 24 May 2013
Symbol …........Last ......Change.....
Dow_Jones 15,303.10 ▲ 8.60 ▲ 0.06%
Nasdaq___ 3,459.14 ▼ -0.27 ▼ -0.01%
S&P_500__ 1,649.60 ▼ -0.91 ▼ -0.06%
30_Yr_Bond 3.170 ▼ -0.02 ▼ -0.69%

NYSE Volume 3,037,142,250
Nasdaq Volume 1,419,622,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,654.34 ▼ -42.45 ▼ -0.63% closed for holiday on Monday
DAX_____ 8,383.30 ▲ 77.98 ▲ 0.94%
CAC_40__ 3,995.16 ▲ 38.37 ▲ 0.97%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,938.60 ▼ -25.70 ▼ -0.52%
Shanghai_Comp 2,293.08 ▲ 4.54 ▲ 0.20%
Taiwan_Weight 8,280.10 ▲ 70.32 ▲ 0.86%
Nikkei_225____ 14,142.65 ▼ -469.80 ▼ -3.22%
Hang_Seng____ 22,686.05 ▲ 67.38 ▲ 0.30%
Strait_Times___ 3,389.04 ▼ -4.13 ▼ -0.12%
NZX_50_Index__ 4,478.20 ▼ -48.04 ▼ -1.06%

http://finance.yahoo.com/news/world-markets-mixed-japan-market-143242983.html

World markets mixed after Japan market dip

World stocks higher despite Japanese market slide

By Toby Sterling, AP Business Writer

With U.S. markets closed, world stocks ended Monday mostly higher ”” with Japan the notable exception as the Nikkei sold off sharply for the second time in a week.

The decline came after Bank of Japan Governor Haruhiko Karoda said over the weekend Japanese interest rates could rise without causing instability, despite the country's large national debt.

The Nikkei 225 shed 3.2 percent to close at 14,142.65, with exporters hit hardest due to the rising yen. That's the reverse of the picture for most of this year, as yen losses have helped propel the index to a 36 percent gain since January.

Among major losers Monday, Nissan Motor Corp. dropped 6.8 percent. Yamaha Motor Co. tumbled 7.9 percent. Sony Corp. slid 6.3 percent.

The index also lost 7.3 percent on May 23, as investors have begun to wonder whether potential benefits of Prime Minister Shinzo Abe's aggressive campaign to lift consumer prices and encourage borrowing and spending have already been priced in.

In European trading, Germany's DAX rose 0.9 percent to 8,381.30. France's CAC-40 advanced 0.9 percent to 3,994.25. Markets in Britain and the U.S. were closed for public holidays.

European Central Bank board member Joerg Asmussen said in a speech in Berlin that with the Eurozone countries in recession, the bank would continue to pursue easy monetary policy "as long as necessary."

Cees Smit, director at Amsterdam brokerage Today's Vermogensbeheer in Amsterdam, said most of the excitement in European stocks came in the morning.

"We were looking at Japan earlier and it was surprising how well European markets were reacting," he said.

He said trade had quieted by the afternoon and stocks drifted off their earlier highs as investors began contemplating U.S. May unemployment figures due out Tuesday.

Other global markets were mixed.

Hopes for a global economic recovery were undermined last week when a survey on China's monthly manufacturing pace showed a bigger-than-expected decline. Less-than-clear indications from the U.S. Federal Reserve on whether it might scale back its aggressive bond-buying program, dubbed quantitative easing or QE, also caused investors to curb their enthusiasm.

Hong Kong's Hang Seng index reversed early losses Monday to rise 0.3 percent to 22,686.05 after pledges by China's leaders to pursue sustainable growth helped push up alternative energy stocks. China Everbright International jumped 5 percent. Anton Oilfield Services, which is pursuing shale gas development in China, surged 8.3 percent.

"We have seen a lot of funds buying into shale gas, wind power and environmental protection," said Jackson Wong, vice president at Tanrich Securities in Hong Kong. Wong also said that a recovery in mainland Chinese stocks helped the Hang Seng.

South Korea's Kospi gained 0.3 percent to 1,979.97. Benchmarks in mainland China and Taiwan rose. Australia's S&P/ASX 200 declined 0.5 percent to 4,959.90. Benchmarks in the Philippines, New Zealand and Indonesia fell.

Benchmark oil for July delivery was down 55 cents to $93.60 in electronic trading on the New York Mercantile Exchange. The contract fell 10 cents to $94.15 a barrel on the Nymex on Friday.

In currencies, the euro dropped slightly to $1.29324 from $1.2934 late Friday in New York. The dollar was at 101.09 yen, down from last week's high of more than 103 yen per dollar.

 

[bigdog]

Source: http://finance.yahoo.com

A rally that brought the stock market to record highs this year came back to life after consumer confidence reached a five-year high and U.S. home prices rose the most in seven years. As stock prices rose investors sold bonds, sending interest rates higher.

The Dow Jones industrial average rose 106 points to close at another record Tuesday, bouncing back from a loss the week before. The Standard & Poor's 500 index also gained. The S&P is on track for its seventh straight monthly increase, the longest winning streak since 2009.

"They say the stock market tends to lead the economy. Now we're starting to see the improvement on the economic front, so there's some justification for this rally," said Ryan Detrick, a senior technical strategist at Schaeffer's investment research.

The yield on the 10-year Treasury note jumped to 2.17 percent, its highest level since April 2012, as investors moved money out of safe assets and into riskier ones like stocks. That's a big move from Friday's level of 2.01 percent. Markets were closed Monday for Memorial Day.

The stock market is coming off a rare loss last week, when both the Dow and the S&P 500 index had their first losing weeks in a month. Investors worried that the Federal Reserve might slow its extraordinary economic stimulus measures, which have also supported the stock market's advance.

The gains were broad. Eight of the 10 industry groups in the S&P 500 index rose, led by financial stocks. The only groups that fell were utilities and telecommunication companies, which investors tend to buy when they're seeking stable, safe stocks that pay high dividends. All but six of the 30 stocks in the Dow rose.

Some of the most eye-catching price moves were in the bond market.

Bond yields are rising in anticipation that the Fed may ease back on its $85 billion monthly bond purchases. Tim Courtney, chief investment officer at Exencial Wealth Advisors, is among those who see a bleak outlook for the bond market. While inflation is currently low, it will likely start to rise within one or two years if the economy continues to improve, Courtney said.

Higher inflation prompts investors to demand higher yields, pushing down bond prices and inflicting losses on bond investors.

"The only way that bonds can make money from here is if we go a prolonged period of time with very, very low inflation and rates just don't move up a whole lot at all," said Courtney. "Under any other scenario they lose."

Treasury yields are used as benchmarks to set interest rates for consumer loans and mortgages. While they have increased sharply this month, they are still relatively close to the record low of 1.39 percent reached last July.

The Standard & Poor's/Case-Shiller survey, which was released before stock trading opened, found that U.S. home prices rose 10.9 percent in March, the most since April 2006. A growing number of buyers are bidding on a tight supply of homes. Beazer Homes jumped 44 cents, or 2.1 percent, to $21.79.

Stocks extended their gains in the morning after the Conference Board reported at 10 a.m. that its measure of consumer confidence rose in May to its highest level since February 2008.

The Dow was up as much as 218 in the early going, then gave up some of its gain in the afternoon.

Some analysts said investors were likely booking gains as the end of the month approached on Friday. The Dow is up 3.8 percent so far in May. The S&P 500 is 3.9 percent higher.

"It's the end of the month," said Quincy Krosby, a market strategist at Prudential Financial. "If you've been long and you'd done very well you want to lock in those gains."

The Dow closed 106.29 points, or 0.7 percent, higher at 15,409.39. The index has risen for 20 straight Tuesdays. The longest streak of consecutive gains for any day of the week was sent in 1968, when there were 24 gains on Wednesdays, according to Schaeffer's Investment Research.

The S&P 500 index rose 10.46 points, or 0.6 percent, to 1,660.06. The Nasdaq composite index climbed 29.74 points, or 0.9 percent, to 3,488.89.

The Dow has advanced 17.6 percent this year and the S&P 500 index is 16.4 percent higher as investors have piled into stocks.

The NYSE DOW closed HIGHER ▲ 106.29 points or ▲ 0.69% Tuesday, 28 May 2013
Symbol …........Last ......Change.....
Dow_Jones 15,409.39 ▲ 106.29 ▲ 0.69%
Nasdaq___ 3,488.89 ▲ 29.74 ▲ 0.86%
S&P_500__ 1,660.06 ▲ 10.46 ▲ 0.63%
30_Yr_Bond 3.290 ▲ 0.12 ▲ 3.62%

NYSE Volume 3,798,953,500
Nasdaq Volume 1,718,659,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,762.01 ▲ 107.67 ▲ 1.62%
DAX_____ 8,480.87 ▲ 97.57 ▲ 1.16%
CAC_40__ 4,050.56 ▲ 55.40 ▲ 1.39%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,950.60 ▲ 12.00 ▲ 0.24%
Shanghai_Comp 2,321.32 ▲ 28.24 ▲ 1.23%
Taiwan_Weight 8,263.05 ▼ -17.05 ▼ -0.21%
Nikkei_225____ 14,311.98 ▲ 169.33 ▲ 1.20%
Hang_Seng____ 22,924.25 ▲ 238.20 ▲ 1.05%
Strait_Times___ 3,406.08 ▲ 14.78 ▲ 0.44%
NZX_50_Index__ 4,478.25 ▲ 0.05 ▲ 0.00%

http://finance.yahoo.com/news/stock...M2MTYyYTM4BHBzdGNhdAMEcHQDc2VjdGlvbnM-;_ylv=3

Stocks jump after confidence, house prices surge

Stocks rise sharply after consumer confidence gains, house prices rise; Treasury yields surge

By Steve Rothwell, AP Markets Writer

A rally that brought the stock market to record highs this year came back to life after consumer confidence reached a five-year high and U.S. home prices rose the most in seven years. As stock prices rose investors sold bonds, sending interest rates higher.

The Dow Jones industrial average rose 106 points to close at another record Tuesday, bouncing back from a loss the week before. The Standard & Poor's 500 index also gained. The S&P is on track for its seventh straight monthly increase, the longest winning streak since 2009.

"They say the stock market tends to lead the economy. Now we're starting to see the improvement on the economic front, so there's some justification for this rally," said Ryan Detrick, a senior technical strategist at Schaeffer's investment research.

The yield on the 10-year Treasury note jumped to 2.17 percent, its highest level since April 2012, as investors moved money out of safe assets and into riskier ones like stocks. That's a big move from Friday's level of 2.01 percent. Markets were closed Monday for Memorial Day.

The stock market is coming off a rare loss last week, when both the Dow and the S&P 500 index had their first losing weeks in a month. Investors worried that the Federal Reserve might slow its extraordinary economic stimulus measures, which have also supported the stock market's advance.

The gains were broad. Eight of the 10 industry groups in the S&P 500 index rose, led by financial stocks. The only groups that fell were utilities and telecommunication companies, which investors tend to buy when they're seeking stable, safe stocks that pay high dividends. All but six of the 30 stocks in the Dow rose.

Some of the most eye-catching price moves were in the bond market.

Bond yields are rising in anticipation that the Fed may ease back on its $85 billion monthly bond purchases. Tim Courtney, chief investment officer at Exencial Wealth Advisors, is among those who see a bleak outlook for the bond market. While inflation is currently low, it will likely start to rise within one or two years if the economy continues to improve, Courtney said.

Higher inflation prompts investors to demand higher yields, pushing down bond prices and inflicting losses on bond investors.

"The only way that bonds can make money from here is if we go a prolonged period of time with very, very low inflation and rates just don't move up a whole lot at all," said Courtney. "Under any other scenario they lose."

Treasury yields are used as benchmarks to set interest rates for consumer loans and mortgages. While they have increased sharply this month, they are still relatively close to the record low of 1.39 percent reached last July.

The Standard & Poor's/Case-Shiller survey, which was released before stock trading opened, found that U.S. home prices rose 10.9 percent in March, the most since April 2006. A growing number of buyers are bidding on a tight supply of homes. Beazer Homes jumped 44 cents, or 2.1 percent, to $21.79.

Stocks extended their gains in the morning after the Conference Board reported at 10 a.m. that its measure of consumer confidence rose in May to its highest level since February 2008.

The Dow was up as much as 218 in the early going, then gave up some of its gain in the afternoon.

Some analysts said investors were likely booking gains as the end of the month approached on Friday. The Dow is up 3.8 percent so far in May. The S&P 500 is 3.9 percent higher.

"It's the end of the month," said Quincy Krosby, a market strategist at Prudential Financial. "If you've been long and you'd done very well you want to lock in those gains."

The Dow closed 106.29 points, or 0.7 percent, higher at 15,409.39. The index has risen for 20 straight Tuesdays. The longest streak of consecutive gains for any day of the week was sent in 1968, when there were 24 gains on Wednesdays, according to Schaeffer's Investment Research.

The S&P 500 index rose 10.46 points, or 0.6 percent, to 1,660.06. The Nasdaq composite index climbed 29.74 points, or 0.9 percent, to 3,488.89.

The Dow has advanced 17.6 percent this year and the S&P 500 index is 16.4 percent higher as investors have piled into stocks.

Unlike the first three months of the year, when the biggest gains were in large companies in steady industries that pay big dividends, investors have been bidding up the stocks of companies that will gain more if the economy continues to strengthen. That shift out of lower-risk stocks, like utilities, and into more "cyclical" stocks, like banks and industrial companies, means investors are becoming more aggressive in seeking returns and more comfortable taking on risk.

Another bullish signal for the market is the strong growth in small-company stocks. Those stocks have a greater potential for appreciation but also tend to carry greater risk than large, diversified companies. The preference for small stocks was on display again Tuesday as the Russell 2000 index of small-company stocks rose 1.3 percent, more than other market indexes, to 997.35 points, a gain of 13.08 points. Its year-to-date increase of 17.4 percent is 1 percentage point greater than that of the S&P 500.

Among other stocks making big moves:

””Tiffany rose $3.01, or 3.9 percent, to $79.22 after the high-end jewelry seller said its first quarter net income rose 3 percent as sales improved across all regions. The results beat the forecasts of Wall Street analysts.

””Tesla Motors jumped $13.25, or 13.7 percent, to $110.33. Last week the electric car maker raised almost $1 billion from a bond and stock offering and paid off a government loan nine years early. The company is also set to announce this week that it's expanding a network of car-charging stations.

””Railway operator CSX fell 20 cents, or 0.8 percent, to $25.30 after one of its freight trains derailed in a Baltimore suburb.

””Electricity company FirstEnergy dropped 6.5 percent, or $2.76, to $39.86 after Credit Suisse stripped the company of its "outperform" rating, saying that a glut of energy would push down prices the company is able to charge.

In commodities trading, the price of oil rose 86 cents, or 0.9 percent, to $95.01. Gold fell $7.70, or 0.6 percent, to $1,378.90 an ounce. The dollar rose against the euro and the Japanese yen.

 

[bigdog]

Source: http://finance.yahoo.com

Wall Street's passion for high-dividend stocks is fading.

The stock market closed lower Wednesday, led by the same industry groups that had the biggest gains early in the year: rich dividend payers like power utilities and makers of consumer staples.

Rising bond yields have been an important factor behind that shift.

The yield on the 10-year Treasury note has risen sharply this month and is close to a 13-month high. That's helping diminish the appeal of so-called "defensive" stocks that the market favored in the first three months of the year. Utilities stocks have slumped 9.2 percent this month.

More broadly, after this year's powerful bull run ”” the Dow Jones industrial average is up 16.8 percent, the Standard & Poor's 500 index 15.6 percent ”” investors may be running out of reasons to keep plowing money into the stock market.

"There's a vacuum of catalysts to continue to push (stocks) higher," said Sam Stovall, chief U.S. equity strategist for S&P Capital IQ. Now, Stovall said, investors are wondering: " 'Well, should I take some profits and sit on the sidelines and then get back in?' "

Stovall noted that the S&P 500 has had a temporary pullback of at least 5 percent every year since the end of the World War II. That hasn't happened yet in 2013.

Investors have been encouraged by positive signs on the economy recently, including sharp increases reported Tuesday in home prices and consumer confidence. Investors worry, however, that the Federal Reserve will start to ease back on its stimulus program as the economy improves.

The powerful run-up in stock prices has been encouraged by the Fed. The central bank has been buying $85 billion of bonds each month in an effort to keep interest rates low and encourage borrowing, lending and investing. With rates low, investors have sought stocks as an alternative to bonds.

Minutes of a Fed meeting released last Wednesday brought news that some policymakers favored scaling back the bond purchases as early as next month, providing the economy picks up. That pushed stock markets to a decline last week, the first weekly drop in five. Those concerns have also led traders to sell bonds, pushing long-term interest rates higher.

"At some point, interest rates will go up and that's obviously having some impact on stocks," said Erik Davidson, deputy chief investment officer for Wells Fargo Private Bank. "And you're seeing it in the sectors that you would expect. The hardest sectors hit recently have been ... the more dividend-driven stock sectors."

Real estate investment trusts, or REITs, another investment favored by investors seeking income, have also been hit as Treasury yields climb. Vanguard's exchange-traded REIT fund has fallen for five straight days, cutting its gains this year to 10.9 percent from 19.7 percent.

The Dow closed down 106.59 points at 15,302.80, a loss of 0.7 percent. That decline matched its advance the day before, when it closed at a record high, the ninth time it has done so this month. The Dow was down as much as 179 points in late morning trading, then rose moderately in the afternoon.

The S&P 500 index was down 11.70 points to 1,648.36, also 0.7 percent. The Nasdaq composite lost 21.37 points to 3,467.52, or 0.6 percent.

The S&P 500 is headed for a seventh consecutive month of increases, the longest winning streak since 2009. The Dow is on track to end higher for a sixth straight month.

Nine of the 10 sectors in the S&P 500 fell, led by declines of 1.9 percent for consumer staples and 1.5 percent for utilities. In the first three months of the year they were among the biggest winners.

Despite the decline in stocks, it seems too early to call an end to the rally. On several trading days this year, stocks have had sharp sell-offs, only to rise again as investors took advantage of the dip in prices to get into the market.

The NYSE DOW closed LOWER ▼ -106.59 points or ▼ -0.69% Wednesday, 29 May 2013
Symbol …........Last ......Change.....
Dow_Jones 15,302.80 ▼ -106.59 ▼ -0.69%
Nasdaq___ 3,467.52 ▼ -21.37 ▼ -0.61%
S&P_500__ 1,648.36 ▼ -11.70 ▼ -0.70%
30_Yr_Bond 3.270 ▼ -0.02 ▼ -0.55%

NYSE Volume 3,969,497,750
Nasdaq Volume 1,754,261,380

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,627.17 ▼ -134.84 ▼ -1.99%
DAX_____ 8,336.58 ▼ -144.29 ▼ -1.70%
CAC_40__ 3,974.12 ▼ -76.44 ▼ -1.89%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,959.20 ▲ 8.60 ▲ 0.17%
Shanghai_Comp 2,324.02 ▲ 2.70 ▲ 0.12%
Taiwan_Weight 8,337.90 ▲ 74.85 ▲ 0.91%
Nikkei_225____ 14,326.46 ▲ 14.48 ▲ 0.10%
Hang_Seng____ 22,554.93 ▼ -369.32 ▼ -1.61%
Strait_Times___ 3,372.11 ▼ -33.97 ▼ -1.00%
NZX_50_Index__ 4,488.26 ▲ 10.01 ▲ 0.22%

http://finance.yahoo.com/news/stocks-fall-dow-average-pulls-155607091.html

Stocks fall; Dow average pulls back from a record

Stocks market falls as investors shift out of high-dividend stocks; Dow pulls back from record

By Steve Rothwell, AP Markets Writer

Wall Street's passion for high-dividend stocks is fading.

The stock market closed lower Wednesday, led by the same industry groups that had the biggest gains early in the year: rich dividend payers like power utilities and makers of consumer staples.

Rising bond yields have been an important factor behind that shift.

The yield on the 10-year Treasury note has risen sharply this month and is close to a 13-month high. That's helping diminish the appeal of so-called "defensive" stocks that the market favored in the first three months of the year. Utilities stocks have slumped 9.2 percent this month.

More broadly, after this year's powerful bull run ”” the Dow Jones industrial average is up 16.8 percent, the Standard & Poor's 500 index 15.6 percent ”” investors may be running out of reasons to keep plowing money into the stock market.

"There's a vacuum of catalysts to continue to push (stocks) higher," said Sam Stovall, chief U.S. equity strategist for S&P Capital IQ. Now, Stovall said, investors are wondering: " 'Well, should I take some profits and sit on the sidelines and then get back in?' "

Stovall noted that the S&P 500 has had a temporary pullback of at least 5 percent every year since the end of the World War II. That hasn't happened yet in 2013.

Investors have been encouraged by positive signs on the economy recently, including sharp increases reported Tuesday in home prices and consumer confidence. Investors worry, however, that the Federal Reserve will start to ease back on its stimulus program as the economy improves.

The powerful run-up in stock prices has been encouraged by the Fed. The central bank has been buying $85 billion of bonds each month in an effort to keep interest rates low and encourage borrowing, lending and investing. With rates low, investors have sought stocks as an alternative to bonds.

Minutes of a Fed meeting released last Wednesday brought news that some policymakers favored scaling back the bond purchases as early as next month, providing the economy picks up. That pushed stock markets to a decline last week, the first weekly drop in five. Those concerns have also led traders to sell bonds, pushing long-term interest rates higher.

"At some point, interest rates will go up and that's obviously having some impact on stocks," said Erik Davidson, deputy chief investment officer for Wells Fargo Private Bank. "And you're seeing it in the sectors that you would expect. The hardest sectors hit recently have been ... the more dividend-driven stock sectors."

Real estate investment trusts, or REITs, another investment favored by investors seeking income, have also been hit as Treasury yields climb. Vanguard's exchange-traded REIT fund has fallen for five straight days, cutting its gains this year to 10.9 percent from 19.7 percent.

The Dow closed down 106.59 points at 15,302.80, a loss of 0.7 percent. That decline matched its advance the day before, when it closed at a record high, the ninth time it has done so this month. The Dow was down as much as 179 points in late morning trading, then rose moderately in the afternoon.

The S&P 500 index was down 11.70 points to 1,648.36, also 0.7 percent. The Nasdaq composite lost 21.37 points to 3,467.52, or 0.6 percent.

The S&P 500 is headed for a seventh consecutive month of increases, the longest winning streak since 2009. The Dow is on track to end higher for a sixth straight month.

Nine of the 10 sectors in the S&P 500 fell, led by declines of 1.9 percent for consumer staples and 1.5 percent for utilities. In the first three months of the year they were among the biggest winners.

Despite the decline in stocks, it seems too early to call an end to the rally. On several trading days this year, stocks have had sharp sell-offs, only to rise again as investors took advantage of the dip in prices to get into the market.

The Dow fell 1.8 percent April 15 on concerns that a slowdown in China would trip up global economic growth. It has risen 5.5 percent since then. The index also slid 1.6 percent Feb. 25 on concerns that the European debt crisis would disrupt global markets again. The Dow shook off that loss too, and is up 11 percent since then.

The yield on the 10-year Treasury note fell to 2.12 percent from 2.17 percent late Tuesday. The yield surged Tuesday to its highest level in 13 months as investors moved money out of bonds. The yield has risen sharply from 1.63 percent at the beginning of the month.

In another sign of shifting sentiment, a measure of investor's expectations of market volatility has been increasing. The Chicago Board of Exchange's VIX index climbed 2.7 percent Wednesday, its sixth increase in seven days.

In commodities trading, the price of crude oil fell $1.88, or 2 percent, to $93.13 a barrel. Gold rose $12.40, or 0.9 percent, to $1,391.30 an ounce. The dollar fell against the euro and the Japanese yen.

Among stocks making big moves:

”” Smithfield Foods surged $7.38, or 28 percent, to $33.35 after the company agreed to be acquired by meat processor Shuanghui International Holdings for about $4.7 billion.

”” Stewart Enterprises rose $3.23, or 33 percent, to $12.97 after the funeral company agreed to be acquired by Service Corp International for $1.1 billion in cash.

”” Sallie Mae jumped 50 cents, or 2.2 percent, to $23.48. The company, which is formally named SLM Corp., announced a plan to split into two companies, one that manages student loans and a consumer banking business.

”” Michael Kors Holdings rose $1.97, or 3.2 percent, to $63.95 after the fashion company reported that its profit more than doubled on surging sales in the fourth quarter, capping another strong year.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market rose Thursday after a pair of lackluster economic reports raised expectations that the Federal Reserve will continue to boost the economy with its stimulus program.

Unemployment claims rose and an initial estimate of first-quarter economic growth was revised slightly lower. That suggests the U.S. economy may still need some time to recover from its funk and that the Fed will keep up its $85 billion in monthly bond purchases.

"The big worry that's been hitting the market lately, that the Fed might step back prematurely, might be fading a little today on the idea that the economy does need a bit more support," Jeff Kleintop, chief market strategist at LPL Financial, said.

The rise in the Standard & Poor's 500 index was led by banking and insurance stocks, which gained 1.1 percent. Among individual bank stocks, Bank of America rose to its highest in more than two years. JPMorgan also climbed.

Banks and other stocks that stand to benefit the most from an improving economy have surged this week, a change from earlier in the year when investors favored dividend-rich stocks like utilities. Now investors are selling dividend-rich stocks and buying so-called growth stocks. The S&P's financial index is up 2.1 percent this week; its utilities index is down 2.5 percent.

Even after this week's gain, by one measure bank stocks are still less expensive than the broader market. The price-to-earnings ratio for financial companies is 14.4 for banks and insurers, compared with 16.2 for all companies in the S&P 500 index, according to FactSet.

Banks are also attractive to investors because they have the capacity to increase their dividends from the current low levels, having bolstered their cash reserves after the financial crisis, Michael Sheldon, chief market strategist at RDM Financial, said.

The S&P 500 rose in early trading, climbing as much as 13.6 points, or 0.8 percent, by late afternoon. The index then gave up some of the gains in the last hour of trading to end up just 6.05 points, or 0.4 percent, at 1,654.41.

The Dow closed up 21.73 points, or 0.1 percent, at 15,324.53 points.

In other trading, the Nasdaq composite index rose 23.78 points, or 0.7 percent, to 3,491.30.

Stock investors have had a good year so far. The Dow is 16.9 percent higher and has set record closing highs on nine days in May. The S&P 500 index is up 16 percent and is on track to rise for a seventh straight month, its longest winning streak since 2009.

The NYSE DOW closed HIGHER ▲ 21.73 points or ▲ 0.14% Thursday, 30 May 2013
Symbol …........Last ......Change.....
Dow_Jones 15,324.53 ▲ 21.73 ▲ 0.14%
Nasdaq___ 3,491.30 ▲ 23.78 ▲ 0.69%
S&P_500__ 1,654.41 ▲ 6.05 ▲ 0.37%
30_Yr_Bond 3.287 ▲ 0.02 ▲ 0.46%

NYSE Volume 3,833,455,000
Nasdaq Volume 1,748,816,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,656.99 ▲ 29.82 ▲ 0.45%
DAX_____ 8,400.20 ▲ 63.62 ▲ 0.76%
CAC_40__ 3,996.31 ▲ 22.19 ▲ 0.56%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,917.10 ▼ -42.10 ▼ -0.85%
Shanghai_Comp 2,317.75 ▼ -6.27 ▼ -0.27%
Taiwan_Weight 8,243.29 ▼ -94.61 ▼ -1.13%
Nikkei_225____ 13,589.03 ▼ -737.43 ▼ -5.15%
Hang_Seng____ 22,484.31 ▼ -70.62 ▼ -0.31%
Strait_Times___ 3,329.91 ▼ -37.56 ▼ -1.12%
NZX_50_Index__ 4,470.51 ▼ -17.75 ▼ -0.40%

http://finance.yahoo.com/news/stocks-rise-lackluster-reports-ease-161432220.html

Stocks rise as lackluster reports ease Fed concern

Stocks rise as weak economic reports ease Fed worries; financial companies lead gains

By Steve Rothwell, AP Markets Writer

The stock market rose Thursday after a pair of lackluster economic reports raised expectations that the Federal Reserve will continue to boost the economy with its stimulus program.

Unemployment claims rose and an initial estimate of first-quarter economic growth was revised slightly lower. That suggests the U.S. economy may still need some time to recover from its funk and that the Fed will keep up its $85 billion in monthly bond purchases.

"The big worry that's been hitting the market lately, that the Fed might step back prematurely, might be fading a little today on the idea that the economy does need a bit more support," Jeff Kleintop, chief market strategist at LPL Financial, said.

The rise in the Standard & Poor's 500 index was led by banking and insurance stocks, which gained 1.1 percent. Among individual bank stocks, Bank of America rose to its highest in more than two years. JPMorgan also climbed.

Banks and other stocks that stand to benefit the most from an improving economy have surged this week, a change from earlier in the year when investors favored dividend-rich stocks like utilities. Now investors are selling dividend-rich stocks and buying so-called growth stocks. The S&P's financial index is up 2.1 percent this week; its utilities index is down 2.5 percent.

Even after this week's gain, by one measure bank stocks are still less expensive than the broader market. The price-to-earnings ratio for financial companies is 14.4 for banks and insurers, compared with 16.2 for all companies in the S&P 500 index, according to FactSet.

Banks are also attractive to investors because they have the capacity to increase their dividends from the current low levels, having bolstered their cash reserves after the financial crisis, Michael Sheldon, chief market strategist at RDM Financial, said.

"Banks appear to be on the mend," said Sheldon.

Bank of America rose 35 cents, or 2.6 percent, to $13.87. JPMorgan gained 95 cents, or 1.7 percent, $55.62 and Morgan Stanley rose 84 cents, or 3.4 percent, to $25.82.

Stocks also got a boost from deal news.

NV Energy surged $4.34, or 23 percent, to $23.62, leading a broad advance in utility companies, after a company owned by Warren Buffett's Berkshire Hathaway agreed to pay a premium of 23 percent to buy the Nevada-based power provider.

Clearwire, a wireless network operator, surged $1.02 cents, or 29 percent, to $4.50 after satellite TV operator Dish Network raised its bid for the company to $6.9 billion.

In economic news, the number of Americans seeking unemployment aid rose last week, a sign layoffs have increased, the Labor Department said Thursday. Claims for unemployment aid rose 10,000 last week to 354,000. The government also lowered its estimate for U.S. economic growth in the first three months of the year to 2.4 percent from 2.5 percent.

Trading has been choppy on Wall Street this week as investors wrestle with the question of whether the Fed will ease its economic stimulus. Minutes released last week from the Fed's last policy meeting showed that some central bank officials favored slowing the purchases as early as next month, if the economy improves enough. The program has been a major factor supporting a rally in stocks by encouraging investors to buy riskier assets.

The Dow Jones industrial average rose 106 points Tuesday, then fell by the same amount Wednesday, leading some market watchers to ask whether the rally that has pushed the Dow and S&P 500 index to record levels may be fizzling out.

While the prospect of a change in Fed strategy is unsettling investors, ultimately, they should welcome the end of the Fed's stimulus because it means that the economy is strong enough to stand on its own two feet, JJ Kinahan, chief derivatives strategist at TD Ameritrade, said.

"It's the vote of confidence," Kinahan said. "It should mean that the overall economy is healthy."

The S&P 500 rose in early trading, climbing as much as 13.6 points, or 0.8 percent, by late afternoon. The index then gave up some of the gains in the last hour of trading to end up just 6.05 points, or 0.4 percent, at 1,654.41.

Phone companies and the makers of consumer staples were the biggest decliners, dropping 1 percent and 0.4 percent respectively. These so-called defensive stocks that pay rich dividends have fallen out of favor this month after investors pushed their prices higher at the start of the year.

The Dow closed up 21.73 points, or 0.1 percent, at 15,324.53 points.

In other trading, the Nasdaq composite index rose 23.78 points, or 0.7 percent, to 3,491.30.

Stock investors have had a good year so far. The Dow is 16.9 percent higher and has set record closing highs on nine days in May. The S&P 500 index is up 16 percent and is on track to rise for a seventh straight month, its longest winning streak since 2009.

In commodities trading, oil rose 48 cents to $93.61 a barrel. Gold rose $20.20, or 1.5 percent, to $1,411.50 an ounce. The dollar fell against the euro and the Japanese yen.

In government bond trading, the yield on the 10-year note was unchanged at 2.12 percent.

Among other stocks making big moves:

”” EMC, a data storage equipment maker, rose $1.27, or 5.4 percent, to $24.93 after the company said it will ramp up its stock buyback program and begin paying a quarterly dividend.

”” Big Lots, a discount store chain, fell $3.45, or 9 percent, to $34.93 after the company reported a 21 percent drop in quarterly income and lowered its full-year revenue forecast.

”” First Solar rose $3.39, or 6.5 percent, to $55.15 after the company's stock was upgraded to "buy" from "neutral" by Goldman Sachs. The investment bank says the solar energy's company's earnings may rise more than Wall Street forecasts and that it might buy other companies or its own stock as it generates more cash.

 

[bigdog]

Source: http://finance.yahoo.com

A gradual decline in the stock market turned into a rout Friday.

After moving between small losses and gains for most of the day, the stock market plunged in the final hour of trading. The Dow Jones industrial average lost more than 200 points, half of them in the last 15 minutes. It was the worst drop in six weeks.

Some traders said the sudden afternoon swoon came as large investors had to rearrange their holdings to match changes in the widely followed MSCI indexes. Others said rapid-fire automated sell programs kicked in as the decline accelerated, exacerbating the loss.

By late Friday, the market looked like it was "feeding on itself," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "Why did we go from trading flat to down 200 points at the close? It suggests to me that it was driven by computer models."

The market managed to hold on to gains for the month, extending winning streaks for major indexes. The Standard & Poor's 500 index ended May with its seventh straight monthly gain, its best run since 2009, but the last two weeks have been choppy. The index has declined on five of the last seven trading days and had its first two-week decline since November.

Traders and investors have started to question whether this year's record-setting rally has run its course. Concern is building that the Federal Reserve may slow its $85 billion bond-buying program. The program has supported the stock market as investors move money out of bonds and into riskier assets. The bond purchases also hold down long-term interest rates to encourage borrowing and spending.

The market appeared to be headed for an inconclusive day of trading early Friday after both encouraging and disappointing news on the economy was reported. An unexpected decline in consumer spending in April was offset by news that a measure of U.S. consumer confidence jumped to the highest level in almost six years in May.

The late afternoon slide in stocks caught many market-watchers by surprise. Big investors may have gotten spooked at the end of the day and sold, says Steven Ricchiuto, chief economist at Mizuho Securities.

"In a thin market, all you need is one or two big money managers to reassess their view and the market can go down quickly," Ricchiuto said.

In government bond trading, the yield on the 10-year Treasury note rose to 2.13 percent from 2.12 percent late Thursday. The yield has risen by half a percentage point since the start of the month and is the highest it's been since April 2012. That has troubled some investors since a rapid rise in rates could curtail borrowing and spending.

The yields on Treasury notes are benchmarks for setting interest rates on many kinds of loans to consumers and businesses. The higher yields are already pushing mortgage rates higher. On Thursday the mortgage buyer Freddie Mac reported that average mortgage rates jumped this week to the highest level in a year.

"People are worried a rise in interest rates might derail the recovery," says Joseph Tanious, the global market strategist at J.P. Morgan Funds.

The Dow closed down 208.96 points, or 1.4 percent, to 15,115.57.

It was the biggest loss for the index since April 15, when markets plunged after worries about an economic slowdown in China caused commodity prices to drop sharply.

The Dow managed its sixth straight month of gains.

The Standard & Poor's 500 index fell 23.67, or 1.4 percent, to 1,630.74. The Nasdaq composite declined 35.38 points, or 1 percent, to 3,455.91.

The NYSE DOW closed LOWER ▼ -208.96 points or ▼ -1.36% Friday, 31 May 2013
Symbol …........Last ......Change.....
Dow_Jones 15,115.57 ▼ -208.96 ▼ -1.36%
Nasdaq___ 3,455.91 ▼ -35.38 ▼ -1.01%
S&P_500__ 1,630.74 ▼ -23.67 ▼ -1.43%
30_Yr_Bond 3.310 ▲ 0.02 ▲ 0.64%

NYSE Volume 4,514,258,500
Nasdaq Volume 1,919,657,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,583.09 ▼ -73.90 ▼ -1.11%
DAX_____ 8,348.84 ▼ -51.36 ▼ -0.61%
CAC_40__ 3,948.59 ▼ -47.72 ▼ -1.19%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,914.00 ▼ -3.10 ▼ -0.06%
Shanghai_Comp 2,300.59 ▼ -17.15 ▼ -0.74%
Taiwan_Weight 8,254.80 ▲ 11.51 ▲ 0.14%
Nikkei_225____ 13,774.54 ▲ 185.51 ▲ 1.37%
Hang_Seng____ 22,392.16 ▼ -92.15 ▼ -0.41%
Strait_Times___ 3,311.37 ▼ -24.64 ▼ -0.74%
NZX_50_Index__ 4,511.35 ▲ 40.84 ▲ 0.91%

http://finance.yahoo.com/news/stocks-plummet-trading-end-may-221941231.html

Stocks plummet in late trading but, end May higher

Stocks plummet in late trading but hold on to monthly gains; Dow slides nearly 209 points

By Steve Rothwell, AP Markets Writer

A gradual decline in the stock market turned into a rout Friday.

After moving between small losses and gains for most of the day, the stock market plunged in the final hour of trading. The Dow Jones industrial average lost more than 200 points, half of them in the last 15 minutes. It was the worst drop in six weeks.

Some traders said the sudden afternoon swoon came as large investors had to rearrange their holdings to match changes in the widely followed MSCI indexes. Others said rapid-fire automated sell programs kicked in as the decline accelerated, exacerbating the loss.

By late Friday, the market looked like it was "feeding on itself," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "Why did we go from trading flat to down 200 points at the close? It suggests to me that it was driven by computer models."

The market managed to hold on to gains for the month, extending winning streaks for major indexes. The Standard & Poor's 500 index ended May with its seventh straight monthly gain, its best run since 2009, but the last two weeks have been choppy. The index has declined on five of the last seven trading days and had its first two-week decline since November.

Traders and investors have started to question whether this year's record-setting rally has run its course. Concern is building that the Federal Reserve may slow its $85 billion bond-buying program. The program has supported the stock market as investors move money out of bonds and into riskier assets. The bond purchases also hold down long-term interest rates to encourage borrowing and spending.

The market appeared to be headed for an inconclusive day of trading early Friday after both encouraging and disappointing news on the economy was reported. An unexpected decline in consumer spending in April was offset by news that a measure of U.S. consumer confidence jumped to the highest level in almost six years in May.

The late afternoon slide in stocks caught many market-watchers by surprise. Big investors may have gotten spooked at the end of the day and sold, says Steven Ricchiuto, chief economist at Mizuho Securities.

"In a thin market, all you need is one or two big money managers to reassess their view and the market can go down quickly," Ricchiuto said.

In government bond trading, the yield on the 10-year Treasury note rose to 2.13 percent from 2.12 percent late Thursday. The yield has risen by half a percentage point since the start of the month and is the highest it's been since April 2012. That has troubled some investors since a rapid rise in rates could curtail borrowing and spending.

The yields on Treasury notes are benchmarks for setting interest rates on many kinds of loans to consumers and businesses. The higher yields are already pushing mortgage rates higher. On Thursday the mortgage buyer Freddie Mac reported that average mortgage rates jumped this week to the highest level in a year.

"People are worried a rise in interest rates might derail the recovery," says Joseph Tanious, the global market strategist at J.P. Morgan Funds.

The Dow closed down 208.96 points, or 1.4 percent, to 15,115.57.

It was the biggest loss for the index since April 15, when markets plunged after worries about an economic slowdown in China caused commodity prices to drop sharply.

The Dow managed its sixth straight month of gains.

The Standard & Poor's 500 index fell 23.67, or 1.4 percent, to 1,630.74. The Nasdaq composite declined 35.38 points, or 1 percent, to 3,455.91.

In commodities trading, oil fell $1.64, or 1.8 percent, to $91.97 a barrel, close to its lowest in a month, after OPEC oil ministers said they would keep their output targets steady. Gold fell $19 to $1,393 an ounce, a decline of 1.3 percent.

Among stocks making big moves:

”” Lions Gate Entertainment rose 77 cents, or 2.7 percent, to $28.80. The company reported net income that topped Wall Street's expectations as it benefited from home video sales of the finale to its hit franchise "Twilight."

”” Palo Alto Networks fell $5.87, or 11 percent, to $48.52 after the network security company posted a quarterly loss and predicted lower profit and revenue in the current quarter than analysts were expecting.

”” OmniVision Technologies, a maker of mobile camera sensors, jumped $2.98, or 19 percent, to $18.47. The company reported that its net income doubled in its fourth fiscal quarter as revenue rose sharply.

2851

 

[bigdog]

Source: http://finance.yahoo.com

For now, bad news is good for the stock market.

Investors judged that the latest weak economic reports will make it more likely that the Federal Reserve will continue to stimulate the economy and support a rally on Wall Street.

On Monday, a measure of U.S. manufacturing fell in May to its lowest level since June 2009 as overseas economies slumped and weak business spending reduced new orders to factories.

That helped convince investors that the Fed will hold off from slowing down its $85 billion bond-buying program. Speculation that the central bank was set to ease that stimulus, a major support for this year's rally in stocks, has caused trading to become volatile in the last two weeks.

The Standard & Poor's 500 index fell in the morning after the manufacturing report was published at 10 a.m. It moved between gains and losses for much of the day, then climbed decisively in the last hour of trading.

The "good news is bad news" interpretation of economic reports may support stocks in the short term, but at the end of the day the economy has to keep improving for stocks to reach new highs, said Alec Young, a global equity strategist at S&P Capital IQ.

"This was a big miss on the ISM report," said Young. "Regardless of what it means for the Fed, ultimately you're buying a stream of earnings and you want to see the economy doing well."

Federal Reserve Bank of Atlanta President Dennis Lockhart also helped allay investors' concerns that the central bank was poised to stop the stimulus. He told Bloomberg Television Monday in an interview that Fed officials remain committed to the stimulus program.

The S&P 500 index closed up 9.68 points at 1,640.42, or 0.6 percent. The Dow Jones industrial average rose 138.46 points to 15,254.03, a gain of 0.9 percent. The Dow got a boost from Merck, which rose 4 percent.

The Nasdaq composite, which is heavily weighted with technology stocks, rose 9.45 points to 3,465.37, an increase of 0.3 percent.

The yield on the 10-year Treasury note ended the day barley changed from late Friday at 2.13 percent. The yield climbed as 2.17 percent in early trading, then went as low as 2.09 percent after the manufacturing report was released.

The yield, which is used to set interest rates on many kinds of loans including home mortgages, has been rising this month. It's now about half a percentage point higher than it was at the start of May.

As Treasury yields fell, rich dividend-paying stocks like electric utilities and phone companies moved higher, reversing early losses. Those sectors, so-called defensive stocks, had been investor favorites in the first quarter but declined in May as bond yields rose.

Despite the advance Monday, signs are emerging that this year's rally may be starting to falter. The Standard & Poor's 500 index closed higher for a seventh straight month in May, but the index also logged its first back-to-back weekly declines since November. On Friday the Dow plunged 208 points, its worst drop in six weeks.

The Dow is still up 16.4 percent this year, and the S&P 500 is 15 percent higher. Stocks have surged as companies reported record earnings and on optimism that the housing market is recovering and hiring is improving.

The NYSE DOW closed HIGHER ▲ 138.46 points or ▲ 0.92% Monday, 3 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,254.03 ▲ 138.46 ▲ 0.92%
Nasdaq___ 3,465.37 ▲ 9.46 ▲ 0.27%
S&P_500__ 1,640.42 ▲ 9.68 ▲ 0.59%
30_Yr_Bond 3.276 ▼ -0.03 ▼ -0.97%

NYSE Volume 4,503,060,500
Nasdaq Volume 2,050,716,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,525.12 ▼ -131.87 ▼ -1.98%
DAX_____ 8,285.80 ▼ -63.04 ▼ -0.76%
CAC_40__ 3,920.67 ▼ -27.92 ▼ -0.71%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,873.70 ▼ -40.30 ▼ -0.82%
Shanghai_Comp 2,299.25 ▼ -1.34 ▼ -0.06%
Taiwan_Weight 8,201.02 ▼ -53.78 ▼ -0.65%
Nikkei_225____ 13,261.82 ▼ -512.72 ▼ -3.72%
Hang_Seng____ 22,282.19 ▼ -109.97 ▼ -0.49%
Strait_Times___ 3,292.42 ▼ -18.95 ▼ -0.57%
NZX_50_Index__ 4,511.35 ▲ 40.84 ▲ 0.91%

http://finance.yahoo.com/news/stocks-gain-manufacturing-eases-fed-205918944.html

Stocks gain after manufacturing eases Fed concern

Markets gain after weak manufacturing report suggests Federal Reserve would maintain stimulus

By Steve Rothwell, AP Markets Writer

For now, bad news is good for the stock market.

Investors judged that the latest weak economic reports will make it more likely that the Federal Reserve will continue to stimulate the economy and support a rally on Wall Street.

On Monday, a measure of U.S. manufacturing fell in May to its lowest level since June 2009 as overseas economies slumped and weak business spending reduced new orders to factories.

That helped convince investors that the Fed will hold off from slowing down its $85 billion bond-buying program. Speculation that the central bank was set to ease that stimulus, a major support for this year's rally in stocks, has caused trading to become volatile in the last two weeks.

The Standard & Poor's 500 index fell in the morning after the manufacturing report was published at 10 a.m. It moved between gains and losses for much of the day, then climbed decisively in the last hour of trading.

The "good news is bad news" interpretation of economic reports may support stocks in the short term, but at the end of the day the economy has to keep improving for stocks to reach new highs, said Alec Young, a global equity strategist at S&P Capital IQ.

"This was a big miss on the ISM report," said Young. "Regardless of what it means for the Fed, ultimately you're buying a stream of earnings and you want to see the economy doing well."

Federal Reserve Bank of Atlanta President Dennis Lockhart also helped allay investors' concerns that the central bank was poised to stop the stimulus. He told Bloomberg Television Monday in an interview that Fed officials remain committed to the stimulus program.

The S&P 500 index closed up 9.68 points at 1,640.42, or 0.6 percent. The Dow Jones industrial average rose 138.46 points to 15,254.03, a gain of 0.9 percent. The Dow got a boost from Merck, which rose 4 percent.

The Nasdaq composite, which is heavily weighted with technology stocks, rose 9.45 points to 3,465.37, an increase of 0.3 percent.

The yield on the 10-year Treasury note ended the day barley changed from late Friday at 2.13 percent. The yield climbed as 2.17 percent in early trading, then went as low as 2.09 percent after the manufacturing report was released.

The yield, which is used to set interest rates on many kinds of loans including home mortgages, has been rising this month. It's now about half a percentage point higher than it was at the start of May.

As Treasury yields fell, rich dividend-paying stocks like electric utilities and phone companies moved higher, reversing early losses. Those sectors, so-called defensive stocks, had been investor favorites in the first quarter but declined in May as bond yields rose.

Despite the advance Monday, signs are emerging that this year's rally may be starting to falter. The Standard & Poor's 500 index closed higher for a seventh straight month in May, but the index also logged its first back-to-back weekly declines since November. On Friday the Dow plunged 208 points, its worst drop in six weeks.

The Dow is still up 16.4 percent this year, and the S&P 500 is 15 percent higher. Stocks have surged as companies reported record earnings and on optimism that the housing market is recovering and hiring is improving.

In commodities trading, oil climbed $1.48, or 1.6 percent, to $93.45 a barrel. Gold rose $18.90, or 1.4 percent, to $1,411.90 an ounce. The dollar fell against the euro and against the Japanese yen. The U.S. currency dropped back below 100 yen for the first time in three weeks.

Among stocks making moves:

Merck led the Dow higher after news crossed that the drugmaker announced encouraging clinical results for a medicine to treat skin cancer. Merck rose $1.75 to $48.45.

Cracker Barrel Old Country Store rose $5.82, or 6.5 percent, or $95.28 after the restaurant operator said its fiscal third-quarter profit rose 30 percent as higher prices on its menus helped increase its sales.

Centene fell 1.3 percent after the Medicaid coverage provider said a Kentucky court ruled that it cannot prematurely end a contract that has generated steep losses. The stock lost 63 cents to $48.87.

 

[bigdog]

Source: http://finance.yahoo.com

The Federal Reserve guessing game threw the markets for another loop Tuesday.

Comments from a Fed official raised expectations that the Fed could start easing off its support for the economy soon, sending the stock market sharply lower in the late afternoon. The market recovered in the last hour of trading to end with slight losses.

Snippets from a prepared speech by Esther George, president of the Kansas City branch of the Federal Reserve, were reported in the early afternoon. George pointed to "improving economic conditions" as well as evidence that financial markets were getting dependent on the Fed's support. As a result, she said, "I support slowing the pace of asset purchases as an appropriate next step for monetary policy."

"History suggests that waiting too long to acknowledge the economy's progress and prepare markets for more-normal policy settings carries no less risk than tightening too soon," George said, according to a prepared speech she was set to give in Santa Fe, N.M.

George didn't give the speech because she was sick, but news outlets still reported her comments, and the Kansas City Fed posted the speech on its website.

It was the latest volatile turn in stock trading as investors try to figure out when the Fed will make a move.

While it's well-known that the Fed's next step will be to pare its bond-buying, nobody is sure when that will happen. As a result, traders have been trying to out-guess each other in anticipation of the Fed's decision, seizing on comments from bank officials and minutes from a recent meeting of policymakers to send stock and bond prices swinging sharply over the past two weeks.

The next big data point for investors is the Labor Department's monthly employment survey due out Friday. Oddly enough, a weak report might be encouraging to stock investors since it would imply that the Fed will keep buying bonds to support the economy.

That's the reaction the stock market had on Monday, when traders interpreted an unexpected slowdown in U.S. manufacturing last month as the latest sign that the Fed wasn't close to winding down its stimulus program.

"You gotta believe that people are getting ready for the end of the week," said Jim Paulsen, chief investment strategist at Wells Capital Management in Minneapolis.

The Fed has been buying $85 billion in bonds each month, helping to keep bond prices high and the yields they pay low. In theory, that should lead people to borrow and also shift money out of bonds and into other investments.

Many investors expect long-term interest rates to rise when the Fed scales back its bond-buying. If they climb high enough, more investors may be tempted to buy bonds instead of stocks. Trying to anticipate that outcome, many traders are pre-emptively selling stocks on the slightest signs that the Fed may be closer to slowing its stimulus.

The current yield of 2.15 percent on the benchmark 10-year Treasury note is extremely low by historical standards. It's also nearly identical to the average dividend payment of 2.14 percent for stocks in the S&P 500.

The Standard & Poor's 500 index fell 9.04 points to close at 1,631.38, a drop of 0.6 percent. It had lost as much as 16 points, or 1 percent, around 2:30 p.m.

The Dow Jones industrial average lost 76.49 points to 15,177.54, a drop of 0.5 percent. The Dow had gained for the previous 20 Tuesdays in a row.

The Nasdaq composite fell 20.11 points to 3,445.26, down 0.6 percent.

It looked like the stock market was headed for a second straight day of gains at the start of trading Tuesday. Encouraging news about home prices and trade helped push the S&P 500 up 0.4 percent in the early going. It turned flat shortly before noon, slid 1 percent an hour later and then spent the rest of the day climbing back.

The NYSE DOW closed LOWER ▼ -76.49 points or ▼ -0.50% Tuesday, 4 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,177.54 ▼ -76.49 ▼ -0.50%
Nasdaq___ 3,445.26 ▼ -20.11 ▼ -0.58%
S&P_500__ 1,631.38 ▼ -9.04 ▼ -0.55%
30_Yr_Bond 3.297 ▲ 0.02 ▲ 0.64%

NYSE Volume 4,033,154,500
Nasdaq Volume 1,868,012,380

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,558.58 ▲ 33.46 ▲ 0.51%
DAX_____ 8,295.96 ▲ 10.16 ▲ 0.12%
CAC_40__ 3,925.83 ▲ 5.16 ▲ 0.13%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,886.70 ▲ 13.00 ▲ 0.27%
Shanghai_Comp 2,272.42 ▼ -26.84 ▼ -1.17%
Taiwan_Weight 8,191.22 ▼ -9.80 ▼ -0.12%
Nikkei_225____ 13,533.76 ▲ 271.94 ▲ 2.05%
Hang_Seng____ 22,285.52 ▲ 3.33 ▲ 0.01%
Strait_Times___ 3,287.83 ▼ -3.25 ▼ -0.10%
NZX_50_Index__ 4,473.78 ▼ -37.57 ▼ -0.83%

http://finance.yahoo.com/news/stocks-head-lower-fed-stimulus-184420703.html

Stocks head lower on Fed stimulus worries

Stock turn lower Wall Street as traders expect early wind-down of Fed stimulus

By Matthew Craft, AP Business Writer

The Federal Reserve guessing game threw the markets for another loop Tuesday.

Comments from a Fed official raised expectations that the Fed could start easing off its support for the economy soon, sending the stock market sharply lower in the late afternoon. The market recovered in the last hour of trading to end with slight losses.

Snippets from a prepared speech by Esther George, president of the Kansas City branch of the Federal Reserve, were reported in the early afternoon. George pointed to "improving economic conditions" as well as evidence that financial markets were getting dependent on the Fed's support. As a result, she said, "I support slowing the pace of asset purchases as an appropriate next step for monetary policy."

"History suggests that waiting too long to acknowledge the economy's progress and prepare markets for more-normal policy settings carries no less risk than tightening too soon," George said, according to a prepared speech she was set to give in Santa Fe, N.M.

George didn't give the speech because she was sick, but news outlets still reported her comments, and the Kansas City Fed posted the speech on its website.

It was the latest volatile turn in stock trading as investors try to figure out when the Fed will make a move.

While it's well-known that the Fed's next step will be to pare its bond-buying, nobody is sure when that will happen. As a result, traders have been trying to out-guess each other in anticipation of the Fed's decision, seizing on comments from bank officials and minutes from a recent meeting of policymakers to send stock and bond prices swinging sharply over the past two weeks.

The next big data point for investors is the Labor Department's monthly employment survey due out Friday. Oddly enough, a weak report might be encouraging to stock investors since it would imply that the Fed will keep buying bonds to support the economy.

That's the reaction the stock market had on Monday, when traders interpreted an unexpected slowdown in U.S. manufacturing last month as the latest sign that the Fed wasn't close to winding down its stimulus program.

"You gotta believe that people are getting ready for the end of the week," said Jim Paulsen, chief investment strategist at Wells Capital Management in Minneapolis.

The Fed has been buying $85 billion in bonds each month, helping to keep bond prices high and the yields they pay low. In theory, that should lead people to borrow and also shift money out of bonds and into other investments.

Many investors expect long-term interest rates to rise when the Fed scales back its bond-buying. If they climb high enough, more investors may be tempted to buy bonds instead of stocks. Trying to anticipate that outcome, many traders are pre-emptively selling stocks on the slightest signs that the Fed may be closer to slowing its stimulus.

The current yield of 2.15 percent on the benchmark 10-year Treasury note is extremely low by historical standards. It's also nearly identical to the average dividend payment of 2.14 percent for stocks in the S&P 500.

The Standard & Poor's 500 index fell 9.04 points to close at 1,631.38, a drop of 0.6 percent. It had lost as much as 16 points, or 1 percent, around 2:30 p.m.

The Dow Jones industrial average lost 76.49 points to 15,177.54, a drop of 0.5 percent. The Dow had gained for the previous 20 Tuesdays in a row.

The Nasdaq composite fell 20.11 points to 3,445.26, down 0.6 percent.

It looked like the stock market was headed for a second straight day of gains at the start of trading Tuesday. Encouraging news about home prices and trade helped push the S&P 500 up 0.4 percent in the early going. It turned flat shortly before noon, slid 1 percent an hour later and then spent the rest of the day climbing back.

General Motors gained 1.6 percent on news that the company will be added to the S&P 500 index on Thursday, replacing H.J. Heinz Co. The ketchup maker is being acquired by Warren Buffett's Berkshire Hathaway and the private equity firm 3G Capital. GM rose 54 cents to $34.96.

The price of crude oil slipped 14 cents to $93.31 a barrel and gold fell $14.70 to $1,397.20 an ounce.

Among other companies in the news:

”” Dollar General sank 9 percent, the biggest drop in the S&P 500. The discount-store chain cut its earnings and revenue forecast for the year ahead because it expects sales to slow. Dollar General's stock dropped $4.91 to $48.64.

”” SAIC slid 7 cents to $14.77. The security and communications technology company posted a 31 percent drop in quarterly earnings late Monday, as government spending cuts crimped SAIC's revenue.

”” Salesforce.com announced plans buy the marketing software company ExactTarget for $2.3 billion. Salesforce fell 8 percent, or $3.24, to $37.80. ExactTarget jumped 52 percent, or $11.59, to $33.69.

 

[bigdog]

Source: http://finance.yahoo.com

A series of weak economic reports sent the stock market plunging to its lowest level in a month on Wednesday.

Companies like miners, banks and chemical makers, whose fortunes are most closely tied to the prospects for growth, led the market lower. That's a sign investors are becoming less confident in the U.S. economy.

The troubling data included weak hiring at private companies, a plunge in mortgage applications and sluggish orders to U.S. factories.

The Dow Jones industrial average fell 217 points and finished at 14,960, a drop of 1.4 percent. It's the first close below 15,000 since May 6 and the biggest decline in seven weeks. Intel fell the most in the Dow.

Stocks started lower and declined steadily throughout the day. After rising every month this year and climbing to record levels this spring, some investors said a significant pullback was overdue.

"The rally is tired and people are taking some profits." said Brad Reynolds, at investment advisor LJRP.

Investors were also unnerved by a sharp 11.5 percent drop in mortgage applications last week. That's a disappointment because the rebound in housing has been one of the key factors supporting the stock market's record-breaking rally this year.

Housing stocks slumped in response. D.R. Horton dropped 27 cents, or 1.2 percent, to $22.65. Beazer Homes fell 60 cents to $18.78, a decline of 3.1 percent.

The fall in applications came as mortgage rates rose the highest point since April 2012. The increase is being driven by higher yields in the bond market. The yield on the 10-year Treasury note climbed as high as 2.2 percent last week, the highest in more than two years.

There was also disappointing news on hiring, another one of the key supports for the market's rally this year.

A measure of employment in the service sector fell to the lowest level since last July. That's a troubling sign because service companies, a broad category that includes entertainment, transportation and health care, have been the main source of job gains in the past several months.

Earlier Wednesday payroll provider ADP said U.S. businesses added just 135,000 jobs in May, the second straight month of weak gains. The increases are much lower than those reported over the winter, which averaged more than 200,000 a month from November through February.

The stock market's recent bout of volatility began May 22 as traders parsed comments from Federal Reserve Chairman Ben Bernanke and minutes from the last meeting of the Fed's policy committee for clues about when the bank may slow its stimulus program.

Since then investors have become increasingly sensitive to economic reports as they try to anticipate when the Fed will pull back on its $85 billion in monthly bond purchases. That program, which is intended to keep interest rates low and encourage lending, has supported markets this year. On some days stocks have rallied after poor economic reports led traders to anticipate that the Fed would keep the stimulus going.

On Wednesday, though, the stock market's decline was unambiguous.

The Standard & Poor's 500 index ended down 22.48 points, or 1.4 percent, at 1,608.90. The index is 3.6 percent below its record close of 1,669 reached May 21. It's still up 12.8 percent this year.

In other trading, the Nasdaq composite dropped 43.78 points, or 1.3 percent, to 3,401.48. The index closed at its lowest level in a month.

The NYSE DOW closed LOWER ▼ -216.95 points or ▼ -1.43% Wednesday, 5 June 2013
Symbol …........Last ......Change.....
Dow_Jones 14,960.59 ▼ -216.95 ▼ -1.43%
Nasdaq___ 3,401.48 ▼ -43.78 ▼ -1.27%
S&P_500__ 1,608.90 ▼ -22.48 ▼ -1.38%
30_Yr_Bond 3.260 ▼ -0.04 ▼ -1.12%

NYSE Volume 4,117,512,250
Nasdaq Volume 1,811,416,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,419.31 ▼ -139.27 ▼ -2.12%
DAX_____ 8,196.18 ▼ -99.78 ▼ -1.20%
CAC_40__ 3,852.44 ▼ -73.39 ▼ -1.87%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,825.20 ▼ -61.50 ▼ -1.26%
Shanghai_Comp 2,270.93 ▼ -1.49 ▼ -0.07%
Taiwan_Weight 8,181.91 ▼ -9.31 ▼ -0.11%
Nikkei_225____ 13,014.87 ▼ -518.89 ▼ -3.83%
Hang_Seng____ 22,069.24 ▼ -216.28 ▼ -0.97%
Strait_Times___ 3,254.94 ▼ -36.41 ▼ -1.11%
NZX_50_Index__ 4,453.59 ▼ -20.19 ▼ -0.45%

http://finance.yahoo.com/news/weak-signals-economy-send-stocks-212040993.html

Weak signals on the economy send stocks plunging

Troubling reports on hiring, housing push the stock market down to its lowest close in a month

By Steve Rothwell, AP Markets

A series of weak economic reports sent the stock market plunging to its lowest level in a month on Wednesday.

Companies like miners, banks and chemical makers, whose fortunes are most closely tied to the prospects for growth, led the market lower. That's a sign investors are becoming less confident in the U.S. economy.

The troubling data included weak hiring at private companies, a plunge in mortgage applications and sluggish orders to U.S. factories.

The Dow Jones industrial average fell 217 points and finished at 14,960, a drop of 1.4 percent. It's the first close below 15,000 since May 6 and the biggest decline in seven weeks. Intel fell the most in the Dow.

Stocks started lower and declined steadily throughout the day. After rising every month this year and climbing to record levels this spring, some investors said a significant pullback was overdue.

"The rally is tired and people are taking some profits." said Brad Reynolds, at investment advisor LJRP.

Investors were also unnerved by a sharp 11.5 percent drop in mortgage applications last week. That's a disappointment because the rebound in housing has been one of the key factors supporting the stock market's record-breaking rally this year.

Housing stocks slumped in response. D.R. Horton dropped 27 cents, or 1.2 percent, to $22.65. Beazer Homes fell 60 cents to $18.78, a decline of 3.1 percent.

The fall in applications came as mortgage rates rose the highest point since April 2012. The increase is being driven by higher yields in the bond market. The yield on the 10-year Treasury note climbed as high as 2.2 percent last week, the highest in more than two years.

There was also disappointing news on hiring, another one of the key supports for the market's rally this year.

A measure of employment in the service sector fell to the lowest level since last July. That's a troubling sign because service companies, a broad category that includes entertainment, transportation and health care, have been the main source of job gains in the past several months.

Earlier Wednesday payroll provider ADP said U.S. businesses added just 135,000 jobs in May, the second straight month of weak gains. The increases are much lower than those reported over the winter, which averaged more than 200,000 a month from November through February.

The stock market's recent bout of volatility began May 22 as traders parsed comments from Federal Reserve Chairman Ben Bernanke and minutes from the last meeting of the Fed's policy committee for clues about when the bank may slow its stimulus program.

Since then investors have become increasingly sensitive to economic reports as they try to anticipate when the Fed will pull back on its $85 billion in monthly bond purchases. That program, which is intended to keep interest rates low and encourage lending, has supported markets this year. On some days stocks have rallied after poor economic reports led traders to anticipate that the Fed would keep the stimulus going.

On Wednesday, though, the stock market's decline was unambiguous.

The Standard & Poor's 500 index ended down 22.48 points, or 1.4 percent, at 1,608.90. The index is 3.6 percent below its record close of 1,669 reached May 21. It's still up 12.8 percent this year.

Intel fell the most in the Dow, dropping 66 cents, or 2.6 percent, to $24.70. Aluminum maker Alcoa was close behind with a decline of 2.2 percent, or 18 cents, to $8.20. All 30 members of the index dropped.

The Dow has fallen for two days in a row. The index has gone without a three-day losing streak since December 26, a record 110 trading days, according to Schaeffer's Investment Research.

As traders sold stocks, the moved money into the haven of U.S. government bonds. The yield on the 10-year Treasury note fell to 2.09 percent from 2.15 percent late Tuesday.

U.S. stocks joined a global rout Wednesday that began overnight in Asia. Japan's benchmark Nikkei 225 index plunged after investors were disappointed at the lack of detail in a keynote speech on the economy from Japanese Prime Minister Shinzo Abe. The Nikkei fell 3.8 percent to 13,014.

European stock markets also fell. Indexes fell 1.9 percent in France, 1.2 percent in Germany and 2.1 percent in Britain.

"Everywhere is red," said Mark Schwartz, chief market strategist, at Lightspeed Financial. "It's just a sea of red and we're following in line."

The Nikkei has fallen 17 percent from its peak in mid-May, after soaring at the start of the year thanks to aggressive stimulus measures from the Bank of Japan. Some market watchers drew a parallel with the U.S., where central bank stimulus has also been pushing stock prices higher.

"I'm very concerned about what's going on in Japan," said Doug Cote, chief market strategist at ING. "Some people might be scratching their head and saying that it could happen to us."

Other world indexes have also had significant declines since May 22, when the worries over the Fed easing its stimulus escalated. The FT-SE 100 in Britain is down 6.2 percent, Hong Kong's Hang Seng index is down 5.1 percent and Brazil's Bovespa is down 6.4 percent.

In commodities trading, the price of crude oil rose 43 cents, or 0.5 percent, to $93.74 a barrel. Gold edged up $1.30 to settle at $1,398.50 an ounce. The dollar fell against the euro and the Japanese yen.

In other trading, the Nasdaq composite dropped 43.78 points, or 1.3 percent, to 3,401.48. The index closed at its lowest level in a month.

 

[bigdog]

Source: http://finance.yahoo.com

A bouncy ride on Wall Street ended with a modest gain Thursday.

The stock market broke a two-day losing streak as traders reacted to news from Europe and looked ahead to the government's monthly employment report.

The Dow Jones industrial average ended 80 points higher. The average of 30 big companies dropped as much as 116 points in the early afternoon after the European Central Bank's president, Mario Draghi, signaled that the bank wouldn't take more steps to shore up Europe's ailing economies.

Retail stocks mostly rose after several store chains reported higher sales for May. Costco gained $1.92, or 1.8 percent, to $111.09.

Financial markets have turned volatile over the past two weeks as traders parse comments from Federal Reserve officials for hints about when the bank will cut back on its support for the economy. A batch of weak manufacturing reports has also heightened concerns about the economy's strength.

One concern for some investors is the recent rise in long-term interest rates. Those rates will likely climb further when the economy improves and the Fed scales down its monthly purchases of $85 billion in bonds. Rates remain near historically low levels.

"As interest rates come back to more normal levels, it's probably going to cause volatility," said Tim Speiss, chairman of the personal wealth advisers practice at EisnerAmper. "But that should be viewed as healthy."

The Dow ended at 15,040.62, a gain of 0.5 percent. The Standard & Poor's 500 index rose 13.66 points to 1,622.56, a gain of 0.9 percent. The Nasdaq composite index rose 22.58 points to 3,424.05, a gain of 0.7 percent.

In Europe, government bond yields jumped and stock indexes fell after the European Bank chief said the bank wouldn't take more action to prop up the region's economy.

The NYSE DOW closed HIGHER ▲ 80.03 points or ▲ 0.53% Thursday, 6 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,040.62 ▲ 80.03 ▲ 0.53%
Nasdaq___ 3,424.05 ▲ 22.58 ▲ 0.66%
S&P_500__ 1,622.56 ▲ 13.66 ▲ 0.85%
30_Yr_Bond 3.230 ▼ -0.03 ▼ -0.86%

NYSE Volume 4,064,813,000
Nasdaq Volume 1,804,413,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,336.11 ▼ -83.20 ▼ -1.30%
DAX_____ 8,098.81 ▼ -97.37 ▼ -1.19%
CAC_40__ 3,814.28 ▼ -38.16 ▼ -0.99%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,771.80 ▼ -53.40 ▼ -1.11%
Shanghai_Comp 2,270.93 ▼ -1.49 ▼ -0.07%
Taiwan_Weight 8,096.14 ▼ -85.77 ▼ -1.05%
Nikkei_225____ 12,904.02 ▼ -110.85 ▼ -0.85%
Hang_Seng____ 21,838.43 ▼ -230.81 ▼ -1.05%
Strait_Times___ 3,193.51 ▼ -49.92 ▼ -1.54%
NZX_50_Index__ 4,455.33 ▲ 1.75 ▲ 0.04%

http://finance.yahoo.com/news/stock-market-ends-choppy-day-201910427.html

Stock market ends choppy day with modest gains

Stock market ends higher after choppy day; Dow regains 15,000, averts three-day losing streak

By Matthew Craft, AP Business Writer

A bouncy ride on Wall Street ended with a modest gain Thursday.

The stock market broke a two-day losing streak as traders reacted to news from Europe and looked ahead to the government's monthly employment report.

The Dow Jones industrial average ended 80 points higher. The average of 30 big companies dropped as much as 116 points in the early afternoon after the European Central Bank's president, Mario Draghi, signaled that the bank wouldn't take more steps to shore up Europe's ailing economies.

Retail stocks mostly rose after several store chains reported higher sales for May. Costco gained $1.92, or 1.8 percent, to $111.09.

Financial markets have turned volatile over the past two weeks as traders parse comments from Federal Reserve officials for hints about when the bank will cut back on its support for the economy. A batch of weak manufacturing reports has also heightened concerns about the economy's strength.

One concern for some investors is the recent rise in long-term interest rates. Those rates will likely climb further when the economy improves and the Fed scales down its monthly purchases of $85 billion in bonds. Rates remain near historically low levels.

"As interest rates come back to more normal levels, it's probably going to cause volatility," said Tim Speiss, chairman of the personal wealth advisers practice at EisnerAmper. "But that should be viewed as healthy."

The Dow ended at 15,040.62, a gain of 0.5 percent. The Standard & Poor's 500 index rose 13.66 points to 1,622.56, a gain of 0.9 percent. The Nasdaq composite index rose 22.58 points to 3,424.05, a gain of 0.7 percent.

In Europe, government bond yields jumped and stock indexes fell after the European Bank chief said the bank wouldn't take more action to prop up the region's economy.

The yield on Spain's 10-year government bond spiked to 4.65 percent from 4.41 percent as demand for the bonds dropped. Stock markets fell 2.6 percent in Italy, 1.2 percent in Germany and 1 percent in France.

Gold jumped $17.30 to $1,415.80 an ounce. The price of crude oil crossed above $95 per barrel following a report from the Energy Department that the country's oil supply shrank last week. Oil rose $1.02 to $94.76 a barrel.

In the market for U.S. government bonds, the yield on the 10-year Treasury note edged down to 2.07 percent from 2.09 percent late Wednesday.

The yield, which acts as a benchmark for mortgages and other loans, has climbed steadily since hitting a recent low of 1.63 percent May 3. That day the government reported a surge in hiring over the previous three months. Expectations that the Fed will ease back on its bond-buying sometime soon are prompting traders to sell bonds, pushing yields higher.

Early Thursday, the Labor Department said that the number of Americans applying for unemployment benefits fell by 11,000 last week to 346,000, a level that's consistent with steady job growth.

Speiss called the drop in claims, which tend to fluctuate sharply week to week, a "good sign." Speiss said it's far from certain that the government's monthly employment survey will give investors anything to cheer on Friday. Economists predict that employers added 170,000 jobs last month. A report that's much better or worse than expected can drive trading for weeks afterward.

Last month, for instance, news that the unemployment rate dropped to 7.5 percent, a four-year low, pushed the S&P 500 above 1,600 for the first time.

David Joy, chief market strategist at Ameriprise Financial, said Friday's report is especially important for investors because the Fed has made it clear that the job market will determine whether the bank pulls back on or extends its bond-buying effort.

"We're in a battleground between what the Fed is going to do and what the economy is going to do, and there's no clear direction on either," Joy said.

Among other stocks making big moves:

”” Chatter that PepsiCo may be interested in buying SodaStream sent the Isreali company's stock up 3 percent, even though PepsiCo called the speculation "totally untrue." SodaStream's stock gained $1.89 to $71.24.

”” VeriFone Systems plunged 21 percent. After the market closed Wednesday, the provider of terminals for credit-card payments reported quarterly results that fell short of financial analysts' estimates. The lower results were a result of a charge for legal fees and sliding sales. VeriFone also forecast earnings of 20 cents in the current quarter, half of what analysts had forecast. The company's stock sank $4.58 to $17.37.

 

[bigdog]

Source: http://finance.yahoo.com

Steady growth in hiring last month sent the stock market sharply higher Friday.

The 175,000 jobs added by U.S. employers last month was just what investors wanted. The number suggested that the economy is growing, but not so strongly that the Federal Reserve will pull back from its economic stimulus soon.

"This was, in our view, very much a 'Goldilocks' number," said Phil Orlando, chief equity strategist at Federated Investors. "There is zero chance that the Federal Reserve is going to start tapering monetary policy," at its next two-day policy meeting starting June 18

The central bank is buying $85 billion of bonds every month to keep interest rates low and encourage borrowing, spending and investing in riskier assets like stocks.

Stocks rose strongly Friday morning, then eased slightly in the early afternoon. The gains accelerated in the final hour of trading.

The Dow Jones Industrial average had its best day in five months. It rose 207 points, or 1.4 percent, to close at 15,248.12. That gain was surpassed this year only by its 2.4 percent rise Jan. 2.

Boeing led the index higher with a gain of $2.73, or 2.7 percent, to $102.49. Industrial conglomerate 3M gained $2.44, or 2.2 percent, to $111.11. Twenty-six of the 30 stocks in the Dow rose.

The Standard & Poor's 500 index rose 20.82 points, or 1.3 percent, to 1,643.38. The Nasdaq composite rose 45.16 points, or 1.3 percent, to 3,469.22.

Nine of the 10 industry groups in the S&P 500 index rose, led by consumer discretionary stocks, which stand to benefit more than other sectors if the economy picks up. Industrial companies and banks also posted strong gains.

The only S&P 500 industry group that fell was telecommunications, a so-called defensive sector that investors favor when they are seeking safety and high dividends.

Financial markets have turned volatile over the past two weeks as traders parse comments from Fed officials for hints about when the central bank will cut back on its support. When it happens, the wind-down will help nudge interest rates higher.

For investors who expect the Fed to stay the course, "these types of slow economic growth reports speak to that," said Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management. "It keeps interest rates at record lows and it keeps the equity markets humming."

The S&P 500 index is down 1.6 percent since reaching a record high on May 21. The next day, Fed Chairman Ben Bernanke said the Fed could ease up on its economic stimulus program in one of its next few meetings.

In government bond trading, the yield on the 10-year Treasury note rose to 2.18 percent from 2.08 percent late Thursday as investors moved out of safer assets.

The NYSE DOW closed HIGHER ▲ 207.50 points or ▲ 1.38% Friday, 7 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,248.12 ▲ 207.50 ▲ 1.38%
Nasdaq___ 3,469.21 ▲ 45.16 ▲ 1.32%
S&P_500__ 1,643.38 ▲ 20.82 ▲ 1.28%
30_Yr_Bond 3.320 ▲ 0.09 ▲ 2.85%

NYSE Volume 3,780,153,250
Nasdaq Volume 1,650,576,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,411.99 ▲ 75.88 ▲ 1.20%
DAX_____ 8,254.68 ▲ 155.87 ▲ 1.92%
CAC_40__ 3,872.59 ▲ 58.31 ▲ 1.53%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,729.30 ▼ -42.50 ▼ -0.89%
Shanghai_Comp 2,210.90 ▼ -31.21 ▼ -1.39%
Taiwan_Weight 8,095.20 ▼ -0.94 ▼ -0.01%
Nikkei_225____ 12,877.53 ▼ -26.49 ▼ -0.21%
Hang_Seng____ 21,575.26 ▼ -263.17 ▼ -1.21%
Strait_Times___ 3,184.72 ▼ -8.79 ▼ -0.28%
NZX_50_Index__ 4,439.86 ▼ -15.48 ▼ -0.35%

http://news.yahoo.com/stocks-jump-us-jobs-report-beats-forecasts-160221659.html

Stocks jump after US jobs report beats forecasts

By STEVE ROTHWELL

Steady growth in hiring last month sent the stock market sharply higher Friday.

The 175,000 jobs added by U.S. employers last month was just what investors wanted. The number suggested that the economy is growing, but not so strongly that the Federal Reserve will pull back from its economic stimulus soon.

"This was, in our view, very much a 'Goldilocks' number," said Phil Orlando, chief equity strategist at Federated Investors. "There is zero chance that the Federal Reserve is going to start tapering monetary policy," at its next two-day policy meeting starting June 18

The central bank is buying $85 billion of bonds every month to keep interest rates low and encourage borrowing, spending and investing in riskier assets like stocks.

Stocks rose strongly Friday morning, then eased slightly in the early afternoon. The gains accelerated in the final hour of trading.

The Dow Jones Industrial average had its best day in five months. It rose 207 points, or 1.4 percent, to close at 15,248.12. That gain was surpassed this year only by its 2.4 percent rise Jan. 2.

Boeing led the index higher with a gain of $2.73, or 2.7 percent, to $102.49. Industrial conglomerate 3M gained $2.44, or 2.2 percent, to $111.11. Twenty-six of the 30 stocks in the Dow rose.

The Standard & Poor's 500 index rose 20.82 points, or 1.3 percent, to 1,643.38. The Nasdaq composite rose 45.16 points, or 1.3 percent, to 3,469.22.

Nine of the 10 industry groups in the S&P 500 index rose, led by consumer discretionary stocks, which stand to benefit more than other sectors if the economy picks up. Industrial companies and banks also posted strong gains.

The only S&P 500 industry group that fell was telecommunications, a so-called defensive sector that investors favor when they are seeking safety and high dividends.

Financial markets have turned volatile over the past two weeks as traders parse comments from Fed officials for hints about when the central bank will cut back on its support. When it happens, the wind-down will help nudge interest rates higher.

For investors who expect the Fed to stay the course, "these types of slow economic growth reports speak to that," said Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management. "It keeps interest rates at record lows and it keeps the equity markets humming."

The S&P 500 index is down 1.6 percent since reaching a record high on May 21. The next day, Fed Chairman Ben Bernanke said the Fed could ease up on its economic stimulus program in one of its next few meetings.

In government bond trading, the yield on the 10-year Treasury note rose to 2.18 percent from 2.08 percent late Thursday as investors moved out of safer assets.

The Labor Department's monthly survey of employment is one of the most important gauges of the U.S. economy and receives close scrutiny from investors. It can frequently cause big moves in financial markets, especially if the report shows that employment is stronger or weaker than economists were expecting.

On May 3, the government reported not only a strong pickup in hiring in April but it also revised sharply upward its estimates for job growth in February and March. That sent the Dow Jones industrial average past 15,000 for the first time, while the S&P 500 index broke through 1,600.

In the weeks following that report, bond yields rose from 1.63 percent as high as 2.20 percent May 31. That meant investors thought the economy was strengthening, dampening the appeal of low-risk assets like bonds. It also meant investors believed the Fed would act sooner than previously thought to curtail its bond-buying program.

Investors are still keeping an eye on interest rates because of the impact that they have on the economy. For example, higher borrowing costs will push up mortgage rates and curb demand for housing. The recovery in the housing market has also boosted stock prices this year.

"Interest rates have really gone up in quite dramatically from a month ago," said Paul Hogan, the manager of the FAM Equity-Income Fund. "If they continue to rise, the market will be a little more bit choppy."

The improving economy has also helped support the dollar this year. The U.S. currency rose against the euro and the yen Friday.

The price of gold fell $32.80, or 2.3 percent, to $1,383 an ounce. Gold has fallen sharply this year as a rising stock market and a strengthening dollar have diminished its appeal as an alternative investment.

In other commodities trading, the price of oil rose $1.27, or 1.3 percent, to $96.03 a barrel.

Among other stocks making big moves:

”” Gap rose $1.11, or 2.7 percent, to $42.09. The San Francisco-based clothing store chain reported late Thursday that its sales jumped 7 percent in May, more than expected, helped by strong results at its namesake Gap and Old Navy stores.

”” TiVo plunged $2.61, or 19 percent, to $11.10 after the company settled patent disputes with several technology companies including Cisco and Motorola Mobility but received far less than what most investors inspected. TiVo has posted annual losses in nearly all of the past 10 years.

”” Thor Industries rose $4.92, or 11.9 percent, to $46.16 after the company reported a 6 percent increase in income. The results beat market expectations on stronger sales of RVs and a lower tax rate.

3395

 

[bigdog]

Source: http://finance.yahoo.com

The Standard & Poor's ratings agency said Monday it's getting more optimistic about the U.S. economy. But investors just yawned.

Stocks budged higher when trading opened, shortly after the S&P agency raised its outlook for the U.S. government's debt rating and credited "the strengths of the economy." But the gains proved both modest and fickle, and the market spent most of the day flitting between small gains and losses.

At day's end, the Dow Jones industrial average and the S&P 500 were lower, but just barely. The Nasdaq composite was slightly higher. It was a marked change from Friday, when the Dow jumped 207 points after a jobs report that investors viewed as positive.

Trading volume was light, and there were no major economic reports or company announcements. The 10 industry sectors in the S&P were split down the middle, with half rising and half falling, but none moved dramatically. The best performer, telecommunications, was up 0.8 percent. The worst, consumer discretionary, was down 0.3 percent.

Booz Allen Hamilton slid after a company employee said he had leaked information about secret government surveillance programs. The consulting company's stock dropped 46 cents, or 2.6 percent, to $17.54.

The S&P's statement harkened back to August 2011, when the agency slashed its rating of the U.S. government's debt because Congress was in a heated battle over whether to raise government spending limits. The downgrade, an embarrassment to the U.S., also sent the stock market into a tailspin. The Dow plunged 634 points, or more than 5 percent, on the first trading day after the downgrade. The market had triple-digit swings throughout that fall.

On Monday, S&P upgraded its outlook on the U.S. debt rating to "Stable" from "Negative." That doesn't restore the U.S. government's top-shelf credit rating, but it does mean that S&P is unlikely to cut the rating again in the near future.

S&P cited the Federal Reserve's willingness to keep interest rates low, which is meant to spur borrowing and spending, and its bond purchasing program, which is meant to encourage investors to buy stocks and other riskier assets. S&P also noted approvingly that Congress had agreed to raise some taxes this year, notably the Social Security tax that most workers pay, which has helped shrink the government's budget deficit.

The reaction from investors was a far cry from two summers ago. Some doubted the S&P's assessment that the economy is improving, and said the Fed is only artificially propping it up.

The Dow closed down 9.53 points at 15,238.59, a loss of 0.06 percent. The S&P 500 index was essentially flat, falling 0.57 point to 1,642.81, or 0.03 percent. The Nasdaq composite edged up 4.55 points to 3,473.77, a gain of 0.1 percent.

The NYSE DOW closed LOWER ▼ -9.53 points or ▼ -0.06% Monday, 10 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,238.59 ▼ -9.53 ▼ -0.06%
Nasdaq___ 3,473.77 ▲ 4.55 ▲ 0.13%
S&P_500__ 1,642.81 ▼ -0.57 ▼ -0.03%
30_Yr_Bond 3.370 ▲ 0.05 ▲ 1.38%

NYSE Volume 3,295,251,000
Nasdaq Volume 1,526,841,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,400.45 ▲ 64.34 ▲ 1.02%
DAX_____ 8,307.69 ▲ 53.01 ▲ 0.64%
CAC_40__ 3,864.36 ▼ -8.23 ▼ -0.21%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,729.30 ▼ -42.50 ▼ -0.89%
Shanghai_Comp 2,210.90 ▼ -31.21 ▼ -1.39%
Taiwan_Weight 8,160.55 ▲ 65.35 ▲ 0.81%
Nikkei_225____ 13,514.20 ▲ 636.67 ▲ 4.94%
Hang_Seng____ 21,615.09 ▲ 39.83 ▲ 0.18%
Strait_Times___ 3,201.15 ▲ 16.43 ▲ 0.52%
NZX_50_Index__ 4,473.38 ▲ 33.53 ▲ 0.76%

http://finance.yahoo.com/news/p-upgrades-us-outlook-investors-143301545.html

S&P upgrades US outlook, but investors yawn

S&P upgrades US debt outlook, but stock market yawns; ratings agency says economy is improving

By Christina Rexrode, AP Business Writer

The Standard & Poor's ratings agency said Monday it's getting more optimistic about the U.S. economy. But investors just yawned.

Stocks budged higher when trading opened, shortly after the S&P agency raised its outlook for the U.S. government's debt rating and credited "the strengths of the economy." But the gains proved both modest and fickle, and the market spent most of the day flitting between small gains and losses.

At day's end, the Dow Jones industrial average and the S&P 500 were lower, but just barely. The Nasdaq composite was slightly higher. It was a marked change from Friday, when the Dow jumped 207 points after a jobs report that investors viewed as positive.

Trading volume was light, and there were no major economic reports or company announcements. The 10 industry sectors in the S&P were split down the middle, with half rising and half falling, but none moved dramatically. The best performer, telecommunications, was up 0.8 percent. The worst, consumer discretionary, was down 0.3 percent.

Booz Allen Hamilton slid after a company employee said he had leaked information about secret government surveillance programs. The consulting company's stock dropped 46 cents, or 2.6 percent, to $17.54.

The S&P's statement harkened back to August 2011, when the agency slashed its rating of the U.S. government's debt because Congress was in a heated battle over whether to raise government spending limits. The downgrade, an embarrassment to the U.S., also sent the stock market into a tailspin. The Dow plunged 634 points, or more than 5 percent, on the first trading day after the downgrade. The market had triple-digit swings throughout that fall.

On Monday, S&P upgraded its outlook on the U.S. debt rating to "Stable" from "Negative." That doesn't restore the U.S. government's top-shelf credit rating, but it does mean that S&P is unlikely to cut the rating again in the near future.

S&P cited the Federal Reserve's willingness to keep interest rates low, which is meant to spur borrowing and spending, and its bond purchasing program, which is meant to encourage investors to buy stocks and other riskier assets. S&P also noted approvingly that Congress had agreed to raise some taxes this year, notably the Social Security tax that most workers pay, which has helped shrink the government's budget deficit.

The reaction from investors was a far cry from two summers ago. Some doubted the S&P's assessment that the economy is improving, and said the Fed is only artificially propping it up.

Ed Butowsky, managing partner of Chapwood Investments in Dallas, said that the unemployment rate is still too high, economic growth too weak and the government's budget deficit too heavy for the economy to be considered healthy.

"It defies economic logic as to why the S&P did this," Butowsky said. "...We continue to print money, we continue to spend money. What are they looking at?"

Others agreed with the S&P's assessment, but said it was old news.

Jerry Webman, chief economist at OppenheimerFunds in New York, thinks the economy is strong enough to drive sustainable earnings growth, but not so strong that the Fed might pull the plug on its stimulus measures ”” a sentiment that seemed to drive Friday's rally. Still, he thinks investors shouldn't draw too many conclusions from a single S&P report.

"On the question of what's moving the U.S. stock market," Webman said, "the answer is 'Not much.'"

The Dow closed down 9.53 points at 15,238.59, a loss of 0.06 percent. The S&P 500 index was essentially flat, falling 0.57 point to 1,642.81, or 0.03 percent. The Nasdaq composite edged up 4.55 points to 3,473.77, a gain of 0.1 percent.

Outside the U.S., Japan's Nikkei stock index soared 4.9 percent after a report that the world's No. 3 economy is growing faster than expected. But there were also reminders that the global economy is far from cured. In the Netherlands, the central bank warned that the government needs to cut spending. Courts in Germany are poised to consider whether Germany is legally allowed to bail out struggling European countries, as it has been doing.

The yield on the 10-year Treasury note edged up to 2.21 percent from 2.18 percent late Friday, a sign that investors were more willing to put their money in the stock market. In commodities trading, the price of crude oil fell 26 cents to $95.77 per barrel, and gold edged up $3 to $1,386 an ounce.

Among companies making big moves:

””Facebook jumped after Stifel Nicolaus analysts upgraded the stock to "Buy" from "Hold," saying the company is one of the most compelling investments in the Internet sector. The stock rose $1.04, or 4.5 percent, to $24.33.

””B&G Foods, whose brands include Cream of Wheat and Mrs. Dash, jumped after announcing it would buy Robert's American Gourmet Food, whose brands include Pirate's Booty and Smart Puffs. B&G Foods rose $1.99, or 6.8 percent, to $31.17.

””Apricus Biosciences soared after reporting that its impotence drug, Vitaros, has been approved in 10 European countries. The stock shot up 17 cents, or 6.6 percent, to $2.73.

 

[bigdog]

Source: http://finance.yahoo.com

Renewed concerns that central banks will ease off their support for the global economy hit the U.S. stock market Tuesday, wiping out its gain for the month.

It looked bad from the start. Indexes began sliding from the opening bell, trailing markets in Asia and Europe, which were rattled when the Bank of Japan decided not to take any new steps to spur growth in the world's third-largest economy.

The news out of Japan added to questions surrounding global central banks, investors said. U.S. markets have been shaken by speculation that the Federal Reserve will start curtailing its own bond-buying program in the coming months.

"There's just a lot of uncertainty," said Dan Greenhaus, chief global strategist at the brokerage BTIG in New York. "People are worried about the Fed. They're worried about a spike in interest rates. And then Japan says it's finished for now."

The Dow Jones industrial average dropped 116.57 points to 15,122.02. That's a decline of 0.8 percent. It fell as much as 152 points in the first hour of trading, climbed back by midday and then sank in the afternoon.

The Standard & Poor's 500 index fell 16.68 points to close at 1,626.13, a loss of 1 percent. All 10 industry groups in the index dropped, led by banks and energy companies. The S&P is now down 0.3 percent for the month.

The S&P 500 index has lost 2.6 percent since setting a record high on May 21. The next day, minutes from a Fed meeting suggested the central bank could decide to scale back its stimulus as early as June if the economy picks up.

Sprint Nextel gained 17 cents, or 2.4 percent, to $7.35 after Japan's Softbank raised its offer for the company. Softbank's total bid for the country's third-largest phone carrier is now valued at $21.6 billion, still short of the $25.5 billion offered by Dish Network.

Overseas, the Bank of Japan voted on Tuesday to stick to its current bond-buying program, disappointing those who had expected the bank to widen its effort. Japan's Nikkei stock index lost 1.5 percent.

Major stock markets in Europe also slumped. Germany's DAX dropped 1 percent and France's CAC-40 lost 1.4 percent.

The world's biggest central banks have bought trillions of dollars worth of bonds in recent years, pressing long-term interest rates down in an attempt to encourage borrowing and spending. In the U.S., the Fed buys $85 billion in bonds each month.

With plenty of signs the U.S. economy is improving, many on Wall Street expect the Fed will start cutting back this summer. That's one reason traders have been selling bonds, pushing the yield on the 10-year note from a low of 1.63 percent last month to 2.18 percent on Tuesday.

The NYSE DOW closed LOWER ▼ -116.57 points or ▼ -0.76% Tuesday, 11 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,122.02 ▼ -116.57 ▼ -0.76%
Nasdaq___ 3,436.95 ▼ -36.82 ▼ -1.06%
S&P_500__ 1,626.13 ▼ -16.68 ▼ -1.02%
30_Yr_Bond 3.330 ▼ -0.04 ▼ -1.07%

NYSE Volume 3,855,556,500
Nasdaq Volume 1,514,407,380

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,340.08 ▼ -60.37 ▼ -0.94%
DAX_____ 8,222.46 ▼ -85.23 ▼ -1.03%
CAC_40__ 3,810.56 ▼ -53.80 ▼ -1.39%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,748.90 ▲ 19.60 ▲ 0.41%
Shanghai_Comp 2,210.90 ▼ -31.21 ▼ -1.39%
Taiwan_Weight 8,116.15 ▼ -44.40 ▼ -0.54%
Nikkei_225____ 13,317.62 ▼ -196.58 ▼ -1.45%
Hang_Seng____ 21,354.66 ▼ -260.43 ▼ -1.20%
Strait_Times___ 3,170.22 ▼ -30.29 ▼ -0.95%
NZX_50_Index__ 4,463.58 ▼ -9.81 ▼ -0.22%

http://finance.yahoo.com/news/us-stocks-end-choppy-day-201418781.html

US stocks end a choppy day with a loss

Stocks end lower after choppy day as market is whipsawed by concern over central-bank pullback

By Matthew Craft, AP Business Writer

Renewed concerns that central banks will ease off their support for the global economy hit the U.S. stock market Tuesday, wiping out its gain for the month.

It looked bad from the start. Indexes began sliding from the opening bell, trailing markets in Asia and Europe, which were rattled when the Bank of Japan decided not to take any new steps to spur growth in the world's third-largest economy.

The news out of Japan added to questions surrounding global central banks, investors said. U.S. markets have been shaken by speculation that the Federal Reserve will start curtailing its own bond-buying program in the coming months.

"There's just a lot of uncertainty," said Dan Greenhaus, chief global strategist at the brokerage BTIG in New York. "People are worried about the Fed. They're worried about a spike in interest rates. And then Japan says it's finished for now."

The Dow Jones industrial average dropped 116.57 points to 15,122.02. That's a decline of 0.8 percent. It fell as much as 152 points in the first hour of trading, climbed back by midday and then sank in the afternoon.

The Standard & Poor's 500 index fell 16.68 points to close at 1,626.13, a loss of 1 percent. All 10 industry groups in the index dropped, led by banks and energy companies. The S&P is now down 0.3 percent for the month.

The S&P 500 index has lost 2.6 percent since setting a record high on May 21. The next day, minutes from a Fed meeting suggested the central bank could decide to scale back its stimulus as early as June if the economy picks up.

Sprint Nextel gained 17 cents, or 2.4 percent, to $7.35 after Japan's Softbank raised its offer for the company. Softbank's total bid for the country's third-largest phone carrier is now valued at $21.6 billion, still short of the $25.5 billion offered by Dish Network.

Overseas, the Bank of Japan voted on Tuesday to stick to its current bond-buying program, disappointing those who had expected the bank to widen its effort. Japan's Nikkei stock index lost 1.5 percent.

Major stock markets in Europe also slumped. Germany's DAX dropped 1 percent and France's CAC-40 lost 1.4 percent.

The world's biggest central banks have bought trillions of dollars worth of bonds in recent years, pressing long-term interest rates down in an attempt to encourage borrowing and spending. In the U.S., the Fed buys $85 billion in bonds each month.

With plenty of signs the U.S. economy is improving, many on Wall Street expect the Fed will start cutting back this summer. That's one reason traders have been selling bonds, pushing the yield on the 10-year note from a low of 1.63 percent last month to 2.18 percent on Tuesday.

Jack Ablin, chief investment officer at BMO Private Bank in Chicago, said it's only natural that investors feel a little nervous after such a sharp rise in long-term interest rates. For starters, they're just not used to it. Many investors have grown used to seeing rates head steadily lower over the past 30 years.

"It's an adjustment period," Ablin said. "You want a stronger economy, OK, but that's coming with higher interest rates. Most people in the business have never encountered that."

In government bond trading, the yield on the 10-year Treasury note touched a 14-month high of 2.29 percent before heading back down to 2.18 percent in late trading, according to Tradeweb. That's down slightly from 2.21 percent late Monday.

The dollar fell sharply against the Japanese yen, sliding to 96.22 yen from 98.70 yen late Monday.

In commodities trading, crude oil fell 39 cents to $95.38 a barrel in New York. Gold dropped $9 to $1,377 an ounce.

The Nasdaq composite fell 36.82 points to 3,436.95, a drop of 1 percent.

Among other companies making big moves:

”” Lululemon Athletica plunged $14.43, or 18 percent, to $67.85 following news that the yoga-clothing maker's CEO will step down as soon as the company's board finds a replacement.

”” Dole Foods soared 22 percent after the company's CEO and his family offered to take the fresh fruit and vegetable company private at $12 per share. That bid values the company at $1.1 billion. The company's stock gained $2.26 to $12.46

”” Corinthian Colleges sank 32 cents, or 12 percent, to $2.46. The company disclosed that it's under investigation by the Securities and Exchange Commission and has been asked to turn over information on student attendance, recruitment and defaults on federal loans. The Santa Ana, Calif. company runs the Everest, Heald and WyoTech colleges

 

[bigdog]

Source: http://finance.yahoo.com

The stock market ended lower Wednesday as traders looked ahead to a critical Federal Reserve meeting next week.

Without any major economic news, traders grappled with the question hanging over financial markets: When will the Fed and other central banks pull back their economic stimulus programs?

The Dow Jones industrial average fell 126 points, or 0.8 percent, to 14,995. The Dow had its first three-day loss of the year and its second close below 15,000 in the past month.

"There's nothing concrete out there to turn us around today," Russell Croft, co-portfolio manager at the Croft Value Fund in Baltimore. "So naturally enough, people are back to thinking about the Fed."

The Dow was up as much as 119 points in the first few minutes of trading, then drifted lower throughout the day.

The Standard & Poor's 500 index fell 13 points, or 0.8 percent, to 1,612. All 10 industry groups in the S&P 500 index dropped, led by consumer-discretionary and utility companies.

The Nasdaq composite sank 36.52 points, or 1 percent, to 3,400.43.

Markets have turned turbulent in recent weeks as traders start preparing for a time when central banks around the world aren't pumping as much money into the financial system.

Two of the top-performing stocks in the S&P 500 this year, Netflix and BestBuy, led consumer-discretionary companies down. Netflix lost $6.82, or 3 percent, to $207.64. BestBuy dropped $1.01, or 4 percent, to $26.88. GameStop fell $1.13, or 3 percent, to $36.69.

The S&P 500 has lost 3.4 percent since reaching a record high on May 21. The next day, Fed chairman Ben Bernanke said the central bank could decide to scale down its bond-buying program in the coming months if the economy looks strong enough.

Since then, the discussion among investors has centered on what will happen when the Fed shifts course. "'Tapering' is definitely the word of the month," Croft said.

Many on Wall Street think the Fed could signal that it's ready to start cutting back on its $85 billion in bond purchases at the end of its two-day meeting next Wednesday. That's a key reason bond traders have been selling Treasurys, sending the 10-year yield from a low of 1.63 percent last month to as high as 2.29 percent this week.

Long-term borrowing rates are still near historic lows, but their jump over the past month has grabbed investors' attention, said Mark Travis, president and CEO of Intrepid Capital Management. "I think people are starting to pause," he said. "If rates continue to drift up, it's probably going to be a headwind for the market."

Despite the losses, there were a few bright spots.

The NYSE DOW closed LOWER ▼ -126.79 points or ▼ -0.84% Wednesday, 12 June 2013
Symbol …........Last ......Change.....
Dow_Jones 14,995.23 ▼ -126.79 ▼ -0.84%
Nasdaq___ 3,400.43 ▼ -36.52 ▼ -1.06%
S&P_500__ 1,612.52 ▼ -13.61 ▼ -0.84%
30_Yr_Bond 3.380 ▲ 0.04 ▲ 1.23%

NYSE Volume 3,694,560,750
Nasdaq Volume 1,546,810,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,299.45 ▼ -40.63 ▼ -0.64%
DAX_____ 8,143.27 ▼ -79.19 ▼ -0.96%
CAC_40__ 3,793.70 ▼ -16.86 ▼ -0.44%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,716.10 ▼ -32.80 ▼ -0.69%
Shanghai_Comp 2,210.90 ▼ -31.21 ▼ -1.39%
Taiwan_Weight 8,116.15 ▼ -44.40 ▼ -0.54%
Nikkei_225____ 13,289.32 ▼ -28.30 ▼ -0.21%
Hang_Seng____ 21,354.66 ▼ -260.43 ▼ -1.20%
Strait_Times___ 3,153.48 ▼ -16.90 ▼ -0.53%
NZX_50_Index__ 4,442.12 ▼ -21.45 ▼ -0.48%

http://finance.yahoo.com/news/stock...M2MTYyYTM4BHBzdGNhdAMEcHQDc2VjdGlvbnM-;_ylv=3

Stocks slide on Wall Street; Dow below 15,000

Stocks slump on Wall Street, giving the Dow average its first three-day loss this year

By Matthew Craft, AP Business Writer

The stock market ended lower Wednesday as traders looked ahead to a critical Federal Reserve meeting next week.

Without any major economic news, traders grappled with the question hanging over financial markets: When will the Fed and other central banks pull back their economic stimulus programs?

The Dow Jones industrial average fell 126 points, or 0.8 percent, to 14,995. The Dow had its first three-day loss of the year and its second close below 15,000 in the past month.

"There's nothing concrete out there to turn us around today," Russell Croft, co-portfolio manager at the Croft Value Fund in Baltimore. "So naturally enough, people are back to thinking about the Fed."

The Dow was up as much as 119 points in the first few minutes of trading, then drifted lower throughout the day.

The Standard & Poor's 500 index fell 13 points, or 0.8 percent, to 1,612. All 10 industry groups in the S&P 500 index dropped, led by consumer-discretionary and utility companies.

The Nasdaq composite sank 36.52 points, or 1 percent, to 3,400.43.

Markets have turned turbulent in recent weeks as traders start preparing for a time when central banks around the world aren't pumping as much money into the financial system.

Two of the top-performing stocks in the S&P 500 this year, Netflix and BestBuy, led consumer-discretionary companies down. Netflix lost $6.82, or 3 percent, to $207.64. BestBuy dropped $1.01, or 4 percent, to $26.88. GameStop fell $1.13, or 3 percent, to $36.69.

The S&P 500 has lost 3.4 percent since reaching a record high on May 21. The next day, Fed chairman Ben Bernanke said the central bank could decide to scale down its bond-buying program in the coming months if the economy looks strong enough.

Since then, the discussion among investors has centered on what will happen when the Fed shifts course. "'Tapering' is definitely the word of the month," Croft said.

Many on Wall Street think the Fed could signal that it's ready to start cutting back on its $85 billion in bond purchases at the end of its two-day meeting next Wednesday. That's a key reason bond traders have been selling Treasurys, sending the 10-year yield from a low of 1.63 percent last month to as high as 2.29 percent this week.

Long-term borrowing rates are still near historic lows, but their jump over the past month has grabbed investors' attention, said Mark Travis, president and CEO of Intrepid Capital Management. "I think people are starting to pause," he said. "If rates continue to drift up, it's probably going to be a headwind for the market."

Despite the losses, there were a few bright spots.

Cooper Tire & Rubber jumped 41 percent after Apollo Tyres, an Indian company, announced plans to buy the tire maker for $2.5 billion. The combined company would be one of the world's largest tire makers, Apollo said, with combined 2012 sales of $6.6 billion. Cooper Tire gained $10.10 to $34.66.

Gigamon soared 50 percent on its first day of trading as a public company. The Milpitas, Calif.-based company, which makes equipment for computer-network traffic, raised $128 million in its initial public offering Tuesday. Its stock surged $9.47 to $28.47.

In the market for U.S. government bonds, the yield on the 10-year Treasury note edged up to 2.23 percent from 2.18 percent late Tuesday.

In commodities trading, crude oil rose 50 cents to $95.88 a barrel. Gold rose $15 to $1,392 an ounce.

Among other stocks making moves:

”” First Solar slumped 11 percent, the biggest drop in the S&P 500, following news late Tuesday that the company plans to raise money through the sale of 8.5 million shares. That will dilute the market value of its shares. First Solar lost $4.68 to $47.54.

”” Rambus, a designer of memory chips, rose 52 cents, or 6 percent, to $8.55 after saying late Tuesday it had resolved a decade-old patent dispute with South Korean chipmaker Hynix. Hynix will pay Rambus $240 million over the next five years.

”” Ulta Salon Cosmetics & Fragrance jumped $12.51, or 15 percent, to $96.84. The company reported late Tuesday that its income increased 20 percent in the latest quarter.

 

[bigdog]

Source: http://finance.yahoo.com

Good news about hiring and spending at retail businesses helped send the U.S. stock market sharply higher Thursday.

For investors, the pair of government reports offered more encouragement that the U.S. economic recovery will continue, even as Europe and Japan struggle. The Standard & Poor's 500 index soared 23.84 points, or 1.5 percent, to 1,636.36.

The gains were broad. All 10 industry groups within the S&P 500 rose, led by retailers and other consumer-discretionary companies. Gannet soared 34 percent, the most in the S&P 500, on news that it would buy another media company, Belo.

"The underlying fundamentals of our economy are clearly doing much better," said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Mass.

Markets have been turbulent over the past three weeks. The S&P 500 climbed 17 percent from the start of the year to May 21 when it hit an all-time high of 1,669. The index began sliding the next day when the Federal Reserve said it would consider pulling back its support for the economy this year.

It's been a bumpy ride since. The index has fallen as low as 1,608, a trading range of 3.6 percent.

Investors have been debating when the Fed will begin cutting back its bond purchases and worrying about the effect. They could get a better sense next Wednesday, when the bank releases its policy statement and Fed Chairman Ben Bernanke holds another press conference.

"A lot of investors are worried about the Fed," said Bob Baur, chief global economist at Principal Global Investors in Des Moines, Iowa. "That's going to create a bumpy market at least until they get some clarity on that. But we really think the U.S. is in pretty good shape."

Baur thinks the U.S. economic recovery will pick up speed later this year, which could help push corporate earnings and the stock market higher.

The latest positive news came early Thursday when the government said the number of Americans seeking unemployment benefits fell 12,000 to 334,000, below what economists had expected. Jim O'Sullivan, chief U.S. economist at High Frequency Economics, wrote in a note to clients that the government's weekly numbers, while volatile, "continue to signal an improving labor market."

The government also reported that U.S. retail sales increased 0.6 percent in May from April. That was up from a 0.1 percent gain in April and the fastest pace since February.

The Dow Jones industrial average rose 180.85 points, or 1.2 percent, to 15,176.08. The Nasdaq composite rose 44.93 points, or 1.2 percent, to 3,445.36.

Some investors, like Anton Bayer, CEO of Up Capital Management in Granite Bay, Calif., believe that financial markets will falter when the Fed and other central banks pump less money into the system. The Fed has artificially propped up the economy, he thinks, which is why investors are nervous about what will happen when the central bank starts buying fewer bonds every month.

The NYSE DOW closed HIGHER ▲ 180.85 points or ▲ 1.21% Thursday, 13 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,176.08 ▲ 180.85 ▲ 1.21%
Nasdaq___ 3,445.37 ▲ 44.94 ▲ 1.32%
S&P_500__ 1,636.36 ▲ 23.84 ▲ 1.48%
30_Yr_Bond 3.330 ▼ -0.05 ▼ -1.45%

NYSE Volume 3,843,868,250
Nasdaq Volume 1,548,629,620

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,304.63 ▲ 5.18 ▲ 0.08%
DAX_____ 8,095.39 ▼ -47.88 ▼ -0.59%
CAC_40__ 3,797.98 ▲ 4.28 ▲ 0.11%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,684.90 ▼ -31.20 ▼ -0.66%
Shanghai_Comp 2,148.35 ▼ -62.54 ▼ -2.83%
Taiwan_Weight 7,951.66 ▼ -164.49 ▼ -2.03%
Nikkei_225____ 12,445.38 ▼ -843.94 ▼ -6.35%
Hang_Seng____ 20,887.04 ▼ -467.62 ▼ -2.19%
Strait_Times___ 3,130.24 ▼ -23.24 ▼ -0.74%
NZX_50_Index__ 4,401.91 ▼ -40.22 ▼ -0.91%

http://finance.yahoo.com/news/us-st...;_ylg=X3oDMTBhYWM1a2sxBGxhbmcDZW4tVVM-;_ylv=3

US stock market moves sharply higher

Stocks rise sharply in afternoon trading; Gannett jumps after deal to acquire Belo

By Matthew Craft, AP Business Writer

Good news about hiring and spending at retail businesses helped send the U.S. stock market sharply higher Thursday.

For investors, the pair of government reports offered more encouragement that the U.S. economic recovery will continue, even as Europe and Japan struggle. The Standard & Poor's 500 index soared 23.84 points, or 1.5 percent, to 1,636.36.

The gains were broad. All 10 industry groups within the S&P 500 rose, led by retailers and other consumer-discretionary companies. Gannet soared 34 percent, the most in the S&P 500, on news that it would buy another media company, Belo.

"The underlying fundamentals of our economy are clearly doing much better," said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Mass.

Markets have been turbulent over the past three weeks. The S&P 500 climbed 17 percent from the start of the year to May 21 when it hit an all-time high of 1,669. The index began sliding the next day when the Federal Reserve said it would consider pulling back its support for the economy this year.

It's been a bumpy ride since. The index has fallen as low as 1,608, a trading range of 3.6 percent.

Investors have been debating when the Fed will begin cutting back its bond purchases and worrying about the effect. They could get a better sense next Wednesday, when the bank releases its policy statement and Fed Chairman Ben Bernanke holds another press conference.

"A lot of investors are worried about the Fed," said Bob Baur, chief global economist at Principal Global Investors in Des Moines, Iowa. "That's going to create a bumpy market at least until they get some clarity on that. But we really think the U.S. is in pretty good shape."

Baur thinks the U.S. economic recovery will pick up speed later this year, which could help push corporate earnings and the stock market higher.

The latest positive news came early Thursday when the government said the number of Americans seeking unemployment benefits fell 12,000 to 334,000, below what economists had expected. Jim O'Sullivan, chief U.S. economist at High Frequency Economics, wrote in a note to clients that the government's weekly numbers, while volatile, "continue to signal an improving labor market."

The government also reported that U.S. retail sales increased 0.6 percent in May from April. That was up from a 0.1 percent gain in April and the fastest pace since February.

The Dow Jones industrial average rose 180.85 points, or 1.2 percent, to 15,176.08. The Nasdaq composite rose 44.93 points, or 1.2 percent, to 3,445.36.

Some investors, like Anton Bayer, CEO of Up Capital Management in Granite Bay, Calif., believe that financial markets will falter when the Fed and other central banks pump less money into the system. The Fed has artificially propped up the economy, he thinks, which is why investors are nervous about what will happen when the central bank starts buying fewer bonds every month.

"What the markets are seeing is the economic engines are not being primed," Bayer said. "The fear is of the stimulus going away and exposing an economy that is not really chugging along. It's the big risk."

In the U.S. government bond market, the yield on the 10-year Treasury note dropped to 2.14 percent from 2.23 percent late Wednesday.

In Japan, the benchmark Nikkei 225 index slumped 6.4 percent as doubts grew that Prime Minister Shinzo Abe's economic turnaround plan will succeed. The Japanese market is down 20 percent from a high reached May 22, the definition of a bear market.

That decline followed an extraordinary surge from mid-November to late May. The Nikkei soared 80 percent as investors hoped Japan would finally emerge from its two-decade economic slump.

The price of crude oil rose 13 cents to $96.01 a barrel in New York. Gold dropped $13.70 to $1,378.30 an ounce.

Among stocks making big moves:

”” Safeway jumped $1.71, or 7 percent, to $24.82 after the company said late Wednesday that it would sell its supermarket business in Canada to food retailer Sobeys for $5.7 billion.

”” Gannett soared $6.75 to $26.60 after announcing its deal to buy Belo for $1.5 billion.

”” Williams Companies fell 33 cents, or 1 percent, to $33.70. A fire at the company's Louisiana petrochemical plant sent its stock down. The plant makes highly flammable gases, ethylene and propylene.

 

[bigdog]

Source: http://finance.yahoo.com

Disappointing reports about the U.S. economy helped push the stock market lower on Friday.

Concerns that the Federal Reserve could announce plans to cut back its stimulus program next week also weighed on the mood.

Americans' confidence in the economy weakened in June and was lower than economists had estimated, according to the Thomson Reuters/University of Michigan survey out Friday. Another report said factories weren't as busy as expected.

The International Monetary Fund, a global lender, offered no help. The IMF said Friday that U.S. government spending cuts that kicked in March 1 were "ill-designed" and slowed the economy down.

The Standard & Poor's 500 index sank 9.63 points, or 0.6 percent, to 1,626.73. Media company Gannett fell the most, dropping $1.61, or 6 percent, to $24.99.

"There was just no good news today," said Cam Albright, a director at Wilmington Trust Investment Advisors in Wilmington, Del. Add the handful of economic reports out Friday to the anxiety over the Fed's stimulus program, "and you have the recipe for a soft market to finish the week," he said.

The Dow Jones industrial dropped 105.90 points, or 0.7 percent, to 15,070.18. American Express led the Dow lower, losing $2.24, or 3 percent, to $72.97.

Market indexes flitted from slight gains to losses in morning trading, a contrast to the sudden lurches in previous days. All three major indexes lost 1 percent or more this week.

Trading has been volatile since late May as traders try to figure out when the Fed will dial back its aggressive support for the U.S. economy. This week was no different: The Dow slumped a total of 243 points on Tuesday and Wednesday then jumped 180 points Thursday. The blue-chip average has made moves of 100 points or more in seven of the last 10 trading days.

The Fed buys $85 billion in bonds every month as part of a campaign to keep interest rates extremely low. The aim is to encourage borrowing, spending and investing. Some investors worry that long-term interest rates could spike when the Fed pulls back, raising borrowing costs and threatening the economic recovery. Higher yields for government bonds have already started pushing mortgage rates up.

Policymakers at the Fed will start a two-day meeting Tuesday to discuss the central bank's next steps. After the meeting wraps up, the bank will release its policy statement and Fed Chairman Ben Bernanke will hold another press conference.

The NYSE DOW closed LOWER ▼ -105.90 points or ▼ -0.70% Friday, 14 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,070.18 ▼ -105.90 ▼ -0.70%
Nasdaq___ 3,423.56 ▼ -21.81 ▼ -0.63%
S&P_500__ 1,626.73 ▼ -9.63 ▼ -0.59%
30_Yr_Bond 3.300 ▼ -0.03 ▼ -0.87%

NYSE Volume 3,289,855,500
Nasdaq Volume 1,424,989,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,308.26 ▲ 3.63 ▲ 0.06%
DAX_____ 8,127.96 ▲ 32.57 ▲ 0.40%
CAC_40__ 3,805.16 ▲ 7.18 ▲ 0.19%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,775.50 ▲ 90.60 ▲ 1.93%
Shanghai_Comp 2,162.04 ▲ 13.69 ▲ 0.64%
Taiwan_Weight 7,937.74 ▼ -13.92 ▼ -0.18%
Nikkei_225____ 12,686.52 ▲ 241.14 ▲ 1.94%
Hang_Seng____ 20,969.14 ▲ 82.10 ▲ 0.39%
Strait_Times___ 3,161.43 ▲ 30.74 ▲ 0.98%
NZX_50_Index__ 4,420.98 ▲ 19.08 ▲ 0.43%

http://finance.yahoo.com/news/disap...;_ylg=X3oDMTBhYWM1a2sxBGxhbmcDZW4tVVM-;_ylv=3

Disappointing reports help push US stocks down

Stocks fall, extending a loss for the week, after disappointing reports about the US economy

By Matthew Craft, AP Business Writer

NEW YORK (AP) -- Disappointing reports about the U.S. economy helped push the stock market lower on Friday.

Concerns that the Federal Reserve could announce plans to cut back its stimulus program next week also weighed on the mood.

Americans' confidence in the economy weakened in June and was lower than economists had estimated, according to the Thomson Reuters/University of Michigan survey out Friday. Another report said factories weren't as busy as expected.

The International Monetary Fund, a global lender, offered no help. The IMF said Friday that U.S. government spending cuts that kicked in March 1 were "ill-designed" and slowed the economy down.

The Standard & Poor's 500 index sank 9.63 points, or 0.6 percent, to 1,626.73. Media company Gannett fell the most, dropping $1.61, or 6 percent, to $24.99.

"There was just no good news today," said Cam Albright, a director at Wilmington Trust Investment Advisors in Wilmington, Del. Add the handful of economic reports out Friday to the anxiety over the Fed's stimulus program, "and you have the recipe for a soft market to finish the week," he said.

The Dow Jones industrial dropped 105.90 points, or 0.7 percent, to 15,070.18. American Express led the Dow lower, losing $2.24, or 3 percent, to $72.97.

Market indexes flitted from slight gains to losses in morning trading, a contrast to the sudden lurches in previous days. All three major indexes lost 1 percent or more this week.

Trading has been volatile since late May as traders try to figure out when the Fed will dial back its aggressive support for the U.S. economy. This week was no different: The Dow slumped a total of 243 points on Tuesday and Wednesday then jumped 180 points Thursday. The blue-chip average has made moves of 100 points or more in seven of the last 10 trading days.

The Fed buys $85 billion in bonds every month as part of a campaign to keep interest rates extremely low. The aim is to encourage borrowing, spending and investing. Some investors worry that long-term interest rates could spike when the Fed pulls back, raising borrowing costs and threatening the economic recovery. Higher yields for government bonds have already started pushing mortgage rates up.

Policymakers at the Fed will start a two-day meeting Tuesday to discuss the central bank's next steps. After the meeting wraps up, the bank will release its policy statement and Fed Chairman Ben Bernanke will hold another press conference.

Scott King, senior fiduciary investment adviser at Unified Trust in Lexington, Ky., said that investors in recent weeks have been influenced more by wondering about what the Fed might do than by the underlying economy.

"You have a number of Fed governors saying the opposite to what Bernanke is saying," King said. "And that's made the markets more jittery."

King said investors were disappointed Friday by the drop in consumer confidence. He described the economy as "plodding along."

"Wage growth continues to be pretty meager, and unemployment continues to be lackluster," King said.

Banks led nine of the 10 industry groups in the S&P 500 lower. Utilities made slight gains. Investors tend to favor these safety plays when they want stable companies that pay steady dividends.

The S&P 500 hit a record high of 1,669 on May 21. The next day, Fed officials said they would consider pulling back on their stimulus program once the economy looks healthy enough. The S&P 500 has lost 2 percent since.

In other Friday trading, the Nasdaq composite index lost 21.81 points, or 0.6 percent, to 3,423.56.

The price of oil rose $1.16 to close at $97.85 a barrel, near its highest level of the year, as traders reacted to news that the U.S. would provide weapons to rebel forces in Syria.

Gold rose $9.80, or 0.7 percent, to $1,387.60 an ounce.

In the market for U.S. government bonds, the yield on the benchmark 10-year Treasury note dipped to 2.13 percent from 2.15 percent late Thursday. The yield reached a 14-month high of 2.29 percent on Tuesday. Expectations that the Fed will pare its bond buying have helped drive the yield up from 1.63 percent on May 3, when it was at its lowest level this year.

Among stocks making big moves:

”” Casey's General Stores fell $2.60, or 4 percent, to $60.69. The Iowa-based convenience store reported earnings late Thursday that fell short of what financial analysts had expected.

”” Myriad Genetics sank $4.42, or 14 percent, to $27.59. The decline came a day after the Supreme Court gave the diagnostic test maker a partial victory in a patent battle.

”” Restoration Hardware jumped $9.51, or 16 percent, to $68.47. The high-end home products chain raised its forecast for full-year earnings late Thursday and announced plans to start two new businesses ”” RH Kitchen and Tableware and RH Antiquities ”” next year.

3975

 

[bigdog]

Source: http://finance.yahoo.com

Investors on Wall Street are playing a guessing game with the Federal Reserve.

On Monday, they guessed that the central bank will continue trying to prop up the economy and sent stocks higher.

The major stock indexes all rose about 1 percent in early trading and stayed there for most of the day, before dipping slightly in the afternoon. The Standard & Poor's 500 index rose 12.31 points, or 0.8 percent, to 1,639.04. It had been up as much as 20 points.

The market's gains were broad. Telecommunications was the only one of the 10 industry sectors in the S&P 500 to post a loss. Netflix did better than any other stock in the S&P 500 after announcing that it will run original TV series from Dreamworks Animation.

Overall, though, there were few big company announcements or economic reports. Trading was light, the day more a holding pattern than a referendum. Investors will have to keep guessing about the Fed's future actions until Wednesday, when it will release a policy statement shortly after midday.

Investors sent stocks up Monday because they think Fed policymakers will determine that the economy isn't recovering fast enough. That might seem like a contradiction, but a still-weak economy would influence the Fed to continue its programs designed to stimulate the economy: keeping interest rates low to encourage borrowing, and buying bonds to push investors into stocks.

Not everyone thinks that's a logical pattern.

Doug Lockwood, branch president of Hefty Wealth Partners, a financial advisory firm in Auburn, Ind., said it's not rational for the stock market to regard bad news as good, and to be yanked back and forth more by the actions of a central bank than the underlying fundamentals of the economy.

"I think the market's a little hooked on a drug here," Lockwood said. "You take drugs, you feel better, but it's short-lived. Printing of money should never be considered a great thing for the economy."

The market has been in flux since May 22, when Fed Chairman Ben Bernanke said the Fed would consider pulling back on its bond-buying program if measures of the economy, especially hiring, improve. The comment, made not in prepared testimony but in response to a question from the Joint Economic Committee in Congress, was not expected. In the 17 trading days since then, the Dow Jones industrial average has swung by triple digits 11 times. Overall, the Dow is down about 1 percent since before Bernanke's testimony.

Jim McDonald, chief investment strategist at Northern Trust in Chicago, said Bernanke will seek to "walk back" on some of his previous comments, and reassure investors that the Fed won't pull back on stimulus until it's sure the economy is ready. The surprise factor, more than the substance of Bernanke's comments, might have been what unnerved investors, McDonald said.

"The market hates surprises," McDonald said. "And he surprised us."

The fact that Bernanke is now expected to regard the economy as weak enough to still need stimulus stems from two main data points issued since his testimony, analysts said: a jobs report and low inflation.

In other U.S. stock trading, the Dow rose 109.67 points, or 0.7 percent, to 15,179.85. The Nasdaq composite rose 28.58, or 0.8 percent, to 3,452.13.

The NYSE DOW closed HIGHER ▲ 109.67 points or ▲ 0.73% Monday, 17 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,179.85 ▲ 109.67 ▲ 0.73%
Nasdaq___ 3,452.13 ▲ 28.58 ▲ 0.83%
S&P_500__ 1,639.04 ▲ 12.31 ▲ 0.76%
30_Yr_Bond 3.348 ▲ 0.05 ▲ 1.55%

NYSE Volume 3,462,874,500
Nasdaq Volume 1,579,873,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,330.49 ▲ 25.86 ▲ 0.41%
DAX_____ 8,215.73 ▲ 87.77 ▲ 1.08%
CAC_40__ 3,863.66 ▲ 58.50 ▲ 1.54%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,805.00 ▲ 29.50 ▲ 0.62%
Shanghai_Comp 2,156.21 ▼ -5.83 ▼ -0.27%
Taiwan_Weight 7,992.89 ▲ 55.15 ▲ 0.69%
Nikkei_225____ 13,033.12 ▲ 346.60 ▲ 2.73%
Hang_Seng____ 21,225.90 ▲ 256.76 ▲ 1.22%
Strait_Times___ 3,185.70 ▲ 24.27 ▲ 0.77%
NZX_50_Index__ 4,447.64 ▲ 26.66 ▲ 0.60%

http://finance.yahoo.com/news/inves...;_ylg=X3oDMTBhYWM1a2sxBGxhbmcDZW4tVVM-;_ylv=3

Investors guess Fed's actions, push stocks higher

Investors try to predict Fed's actions and guess stimulus will continue, pushing stocks higher

By Christina Rexrode, AP Business Writer

Investors on Wall Street are playing a guessing game with the Federal Reserve.

On Monday, they guessed that the central bank will continue trying to prop up the economy and sent stocks higher.

The major stock indexes all rose about 1 percent in early trading and stayed there for most of the day, before dipping slightly in the afternoon. The Standard & Poor's 500 index rose 12.31 points, or 0.8 percent, to 1,639.04. It had been up as much as 20 points.

The market's gains were broad. Telecommunications was the only one of the 10 industry sectors in the S&P 500 to post a loss. Netflix did better than any other stock in the S&P 500 after announcing that it will run original TV series from Dreamworks Animation.

Overall, though, there were few big company announcements or economic reports. Trading was light, the day more a holding pattern than a referendum. Investors will have to keep guessing about the Fed's future actions until Wednesday, when it will release a policy statement shortly after midday.

Investors sent stocks up Monday because they think Fed policymakers will determine that the economy isn't recovering fast enough. That might seem like a contradiction, but a still-weak economy would influence the Fed to continue its programs designed to stimulate the economy: keeping interest rates low to encourage borrowing, and buying bonds to push investors into stocks.

Not everyone thinks that's a logical pattern.

Doug Lockwood, branch president of Hefty Wealth Partners, a financial advisory firm in Auburn, Ind., said it's not rational for the stock market to regard bad news as good, and to be yanked back and forth more by the actions of a central bank than the underlying fundamentals of the economy.

"I think the market's a little hooked on a drug here," Lockwood said. "You take drugs, you feel better, but it's short-lived. Printing of money should never be considered a great thing for the economy."

The market has been in flux since May 22, when Fed Chairman Ben Bernanke said the Fed would consider pulling back on its bond-buying program if measures of the economy, especially hiring, improve. The comment, made not in prepared testimony but in response to a question from the Joint Economic Committee in Congress, was not expected. In the 17 trading days since then, the Dow Jones industrial average has swung by triple digits 11 times. Overall, the Dow is down about 1 percent since before Bernanke's testimony.

Jim McDonald, chief investment strategist at Northern Trust in Chicago, said Bernanke will seek to "walk back" on some of his previous comments, and reassure investors that the Fed won't pull back on stimulus until it's sure the economy is ready. The surprise factor, more than the substance of Bernanke's comments, might have been what unnerved investors, McDonald said.

"The market hates surprises," McDonald said. "And he surprised us."

The fact that Bernanke is now expected to regard the economy as weak enough to still need stimulus stems from two main data points issued since his testimony, analysts said: a jobs report and low inflation.

Earlier this month, the government reported that the U.S. added 175,000 jobs in May ”” a solid addition, but not enough to cut into the unemployment rate. And on Friday, the government said that a key measure of inflation ”” the producer price index, which measures wholesale prices ”” rose just 0.1 percent after stripping out the volatile costs of food and gas. That's important because the Fed knows that its stimulus measures can stoke inflation; if inflation is low, that gives the central bank more flexibility to keep pumping money into the economy.

Two measures of economic data released Monday were positive, though both are considered less-important gauges of the U.S. economy. A report on New York state manufacturing showed a pickup, and a survey of U.S. homebuilders said they were more optimistic about home sales than they have been in seven years.

Fred Dickson, chief investment strategist at D.A. Davidson & Co. in Portland, Oregon, described the economy as moving "grudgingly ahead." But sustained growth can't come, he said, until the government gives businesses a better idea of what to expect in the way of financial, health care, labor and energy rules.

"Businesses seem to be suffering from a severe case of 'what's-next-itis' paralysis," Dickson said.

Japan, trying to spur its own economy with a central bank bond-buying program, saw its benchmark Nikkei 225 index jump nearly 3 percent, extending Friday's gain of about 2 percent. Japan's market has also been ricocheted by investors trying to guess the future of its central bank's stimulus actions. Monday's gains were driven by a drop in the value of the yen, which makes Japan's exports cheaper and more competitive. The Nikkei is still down 15 percent since the day before Bernanke's testimony.

In other U.S. stock trading, the Dow rose 109.67 points, or 0.7 percent, to 15,179.85. The Nasdaq composite rose 28.58, or 0.8 percent, to 3,452.13.

The price of crude oil rose throughout the day, but ended 8 cents lower at $97.77 a barrel in New York. Gold edged down $4.50 to $1,383.10 an ounce.

Among U.S. stocks making big moves:

””Pinnacle Entertainment, a casino and racetrack operator, jumped more than 4 percent after it moved closer to regulatory approval for its purchase of Ameristar Casinos. Pinnacle rose 79 cents to $19.64. Ameristar rose 19 cents, less than 1 percent, to $26.39.

””Johnson & Johnson rose 72 cents, less than 1 percent, to $85.63, after saying it would buy Aragon Pharmaceuticals, a private company focused on drugs for hormonally-driven cancers.

””Boeing was up after Qatar Airways and the aircraft leasing arm of General Electric put in an orders for aircraft. Boeing rose $1.20, or 1.2 percent, to $103.03.

””Google rose $11.21, or 1.3 percent, to $886.25, after resolving a shareholder lawsuit that had blocked a stock split. That means it will avoid a scheduled Delaware Chancery Court trial that could have cast it in an unflattering light.

 

[bigdog]

Source: http://finance.yahoo.com

It's all about the Fed. Still.

U.S. stocks moved higher Tuesday, helped by news of a pickup in home building and low inflation. But the Federal Reserve loomed large, with investors trying to guess what the central bank will say Wednesday about how long it plans to keep stimulus programs in place. For many, the market was in a holding pattern as investors waited for Wednesday's announcement.

The market's gains were steady and broad. The Standard & Poor's 500 index rose 12.77 points, or 0.8 percent, to 1,651.81. All 10 of its sectors rose, led by industrial and telecommunications companies. The Russell 2000, an index of smaller companies, closed at a record high but fell just shy of the 1,000-point milestone.

In other trading, the Dow Jones industrial average rose 138.38 points, or 0.9 percent, to 15,318.23. The Nasdaq composite index rose 30.05 points, or 0.9 percent, to 3,482.18.

The Russell 2000 rose 12.15 points, or 1.2 percent, to 999.99 ”” the closest it has ever come to breaking 1,000.

Tuesday's wait-and-see vibe came from a familiar template. The Fed has had an outsized effect on the stock market in recent weeks, with the major indexes getting yanked back and forth as investors try to guess how long the central bank will keep supporting the U.S. economy.

Some investors say it's troubling that the market is relying more on the central bank for direction than economic fundamentals. The latest turning point was May 22, when Fed Chairman Ben Bernanke startled markets by announcing that the central bank could soon pull back on its bond-buying program if the economy improves.

"Here we are again," said Gregg Fisher, founder and chief investment officer of Gerstein Fisher, a financial advisory firm in New York. "We don't know what the actions will be. We're all trying to figure that out."

The Fed's role in the market has swelled since the 2008 financial crisis. The central bank, which is best known for helping set interest rates, has taken an increasingly bigger role in trying to amp up the economy. Its bond-buying program is meant to keep interest rates low, which can encourage borrowing and drive investors into the stock market. The Fed's purchases have swollen its portfolio to $3.4 trillion, a four-fold increase since before the crisis.

"The game is different from what it used to be," said Mark Spellman, portfolio manager for Value Line Funds, a mutual fund company in New York. "It's not just, 'Is the Fed going to raise (its benchmark interest rate) up or down?'" It's 'Is the Fed going to keep buying $85 billion worth of bonds each month?'"

Analysts predicted that Bernanke would use his Wednesday news conference to cast a reassuring tone and make it clear that the Fed won't pull back on any of its programs until it's sure the economy can handle it. He's also likely to drop more hints about when the Fed could start trimming its stimulus programs. Some said that recent market volatility hasn't been caused by fear that the Fed will pull back on its stimulus programs ”” most everyone expects that to happen eventually. It's more because investors don't want to be surprised when it does.

The NYSE DOW closed HIGHER ▲ 138.38 points or ▲ 0.91% Tuesday, 18 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,318.23 ▲ 138.38 ▲ 0.91%
Nasdaq___ 3,482.18 ▲ 30.05 ▲ 0.87%
S&P_500__ 1,651.81 ▲ 12.77 ▲ 0.78%
30_Yr_Bond 3.340 ▼ -0.01 ▼ -0.18%

NYSE Volume 3,422,284,750
Nasdaq Volume 1,673,159,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,374.21 ▲ 43.72 ▲ 0.69%
DAX_____ 8,229.51 ▲ 13.78 ▲ 0.17%
CAC_40__ 3,860.55 ▼ -3.11 ▼ -0.08%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,794.60 ▼ -10.40 ▼ -0.22%
Shanghai_Comp 2,159.29 ▲ 3.08 ▲ 0.14%
Taiwan_Weight 8,011.02 ▲ 18.13 ▲ 0.23%
Nikkei_225____ 13,007.28 ▼ -25.84 ▼ -0.20%
Hang_Seng____ 21,225.88 ▼ -0.02 ▲ 0.00%
Strait_Times___ 3,229.55 ▲ 46.11 ▲ 1.45%
NZX_50_Index__ 4,462.10 ▲ 14.46 ▲ 0.33%

http://finance.yahoo.com/news/waiti...;_ylg=X3oDMTBhYWM1a2sxBGxhbmcDZW4tVVM-;_ylv=3

Waiting for word from Bernanke, stocks move higher

Stocks move higher as investors wait for Bernanke to bring clarity; home building picks up

By Christina Rexrode, AP Business Writer

It's all about the Fed. Still.

U.S. stocks moved higher Tuesday, helped by news of a pickup in home building and low inflation. But the Federal Reserve loomed large, with investors trying to guess what the central bank will say Wednesday about how long it plans to keep stimulus programs in place. For many, the market was in a holding pattern as investors waited for Wednesday's announcement.

The market's gains were steady and broad. The Standard & Poor's 500 index rose 12.77 points, or 0.8 percent, to 1,651.81. All 10 of its sectors rose, led by industrial and telecommunications companies. The Russell 2000, an index of smaller companies, closed at a record high but fell just shy of the 1,000-point milestone.

Tuesday's wait-and-see vibe came from a familiar template. The Fed has had an outsized effect on the stock market in recent weeks, with the major indexes getting yanked back and forth as investors try to guess how long the central bank will keep supporting the U.S. economy.

Some investors say it's troubling that the market is relying more on the central bank for direction than economic fundamentals. The latest turning point was May 22, when Fed Chairman Ben Bernanke startled markets by announcing that the central bank could soon pull back on its bond-buying program if the economy improves.

"Here we are again," said Gregg Fisher, founder and chief investment officer of Gerstein Fisher, a financial advisory firm in New York. "We don't know what the actions will be. We're all trying to figure that out."

The Fed's role in the market has swelled since the 2008 financial crisis. The central bank, which is best known for helping set interest rates, has taken an increasingly bigger role in trying to amp up the economy. Its bond-buying program is meant to keep interest rates low, which can encourage borrowing and drive investors into the stock market. The Fed's purchases have swollen its portfolio to $3.4 trillion, a four-fold increase since before the crisis.

"The game is different from what it used to be," said Mark Spellman, portfolio manager for Value Line Funds, a mutual fund company in New York. "It's not just, 'Is the Fed going to raise (its benchmark interest rate) up or down?'" It's 'Is the Fed going to keep buying $85 billion worth of bonds each month?'"

Analysts predicted that Bernanke would use his Wednesday news conference to cast a reassuring tone and make it clear that the Fed won't pull back on any of its programs until it's sure the economy can handle it. He's also likely to drop more hints about when the Fed could start trimming its stimulus programs. Some said that recent market volatility hasn't been caused by fear that the Fed will pull back on its stimulus programs ”” most everyone expects that to happen eventually. It's more because investors don't want to be surprised when it does.

Brian Doe, wealth adviser at Gratus Capital in Atlanta, described the Fed's policy announcements as "the big wind" that could push the market around.

"Right now the wind is not blowing," Doe said. "We have this little calm where everybody can be optimistic."

The Commerce Department reported that the pace of new home building increased in May, helped by more buyers coming to the market and a scarcity of houses for sale. Investors described the report as good enough to send the market up, but not good enough for the Fed to think the economy is healthy enough to abruptly slash its stimulus efforts.

The Labor Department reported that U.S. consumer prices rose last month, but only slightly. That's also likely to influence the Fed's decisions. The Fed knows that its stimulus programs can lead to inflation. If inflation is in check, however, that gives the Fed more leeway to continue the programs.

In other trading, the Dow Jones industrial average rose 138.38 points, or 0.9 percent, to 15,318.23. The Nasdaq composite index rose 30.05 points, or 0.9 percent, to 3,482.18.

The Russell 2000 rose 12.15 points, or 1.2 percent, to 999.99 ”” the closest it has ever come to breaking 1,000.

The yield on the 10-year Treasury note edged up to 2.19 percent from 2.18 percent late Monday.

Among stocks making big moves:

””Hormel Foods, the maker of Skippy peanut butter and Spam, slipped after the company said it expects lower profits for the year. The stock fell $1.46, or 3.6 percent, to $39.19.

””Fast-food chain Jack in the Box rose after announcing it will close some of the Qdoba Mexican Grill restaurants that it owns. Jack in the Box gained $1.82, or 4.9 percent, to $38.81.

””Signet Jewelers, which runs the Kay Jewelers and Jared brands, rose after announcing that it plans to buy back up to $350 million of its own stock. Signet rose $1.94, or 2.9 percent, to $69.91.

””Newfield Exploration was up after a Stifel Nicolaus analyst boosted the stock to "Buy" from "Hold." Shares of the oil and natural gas company rose 93 cents, or 4 percent, to $23.94.