NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

Financial markets shuddered Wednesday after the Federal Reserve said it could start scaling back its huge economic stimulus program later this year and end it by the middle of 2014.

The reaction by investors -- the Dow Jones industrial average fell more than 200 points and the yield on the 10-year Treasury note rose to its highest in 15 months -- showed just how much investors have come to depend on the Fed's easy money policies that have helped send the stock market up 140 percent in the past four years.

"Any whiff there's going to be reduction in the (Fed's) ammunition is met with selling," said James Camp, managing director of fixed income at Eagle Asset Management.

The selloff was broad. All 10 sectors in the Standard's & Poor's 500 fell, led by high-dividend stocks like telecommunications and utilities.

The Fed's $85 billion in monthly bond purchases have helped the U.S. economy by keeping long-term interest rates low and encouraging borrowing and investing. Now, it looks like the Fed is closer to ending that program as the U.S. economy improves.

The stock market drifted lower for most of the day, ahead of a scheduled statement from the Fed and a press conference by Chairman Ben Bernanke. The Dow was down just 16 points shortly before the central bank released a policy statement and economic outlook at 2 p.m.

Stocks started to fall after the Fed's statement. The selling accelerated after Bernanke began speaking at 2:30 p.m. The Dow Jones industrial average fell 206.04 points, or 1.4 percent, to 15,112.19. Other indexes also fell.

Bond and currency investors reacted more sharply to the Fed's news. Bond yields spiked as investors anticipated a slowdown in the Fed's purchases.

The yield on the 10-year Treasury note jumped to 2.31 percent, its highest in 15 months. The yield on the note started the day at 2.21 percent.

An index measuring the dollar against six other currencies surged 1 percent. The dollar rose against the Japanese yen, the euro and other currencies as traders anticipated higher U.S. rates.

The Standard & Poor's 500 index fell 22.88 points, or 1.4 percent, to 1,628.93.

For weeks, investors have been trying to figure out when the central bank will start to ease back on its bond purchases.

The NYSE DOW closed LOWER ▼ -206.04 points or ▼ -1.35% Wednesday, 19 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,112.19 ▼ -206.04 ▼ -1.35%
Nasdaq___ 3,443.20 ▼ -38.98 ▼ -1.12%
S&P_500__ 1,628.93 ▼ -22.88 ▼ -1.39%
30_Yr_Bond 3.410 ▲ 0.07 ▲ 2.15%

NYSE Volume 3,987,055,750
Nasdaq Volume 1,690,162,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,348.82 ▼ -25.39 ▼ -0.40%
DAX_____ 8,197.08 ▼ -32.43 ▼ -0.39%
CAC_40__ 3,839.34 ▼ -21.21 ▼ -0.55%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,841.80 ▲ 47.20 ▲ 0.98%
Shanghai_Comp 2,143.45 ▼ -15.84 ▼ -0.73%
Taiwan_Weight 8,007.39 ▼ -3.63 ▼ -0.05%
Nikkei_225____ 13,245.22 ▲ 237.94 ▲ 1.83%
Hang_Seng____ 20,986.89 ▼ -238.99 ▼ -1.13%
Strait_Times___ 3,213.79 ▼ -15.76 ▼ -0.49%
NZX_50_Index__ 4,445.55 ▼ -16.55 ▼ -0.37%

http://finance.yahoo.com/news/stocks-slide-fed-says-bond-200915947.html

Stocks slide as Fed says bond purchases could slow

Stocks slide and Treasury yields spike after Bernanke says Fed could slow its bond purchases

By Steve Rothwell, AP Markets Writer

Financial markets shuddered Wednesday after the Federal Reserve said it could start scaling back its huge economic stimulus program later this year and end it by the middle of 2014.

The reaction by investors -- the Dow Jones industrial average fell more than 200 points and the yield on the 10-year Treasury note rose to its highest in 15 months -- showed just how much investors have come to depend on the Fed's easy money policies that have helped send the stock market up 140 percent in the past four years.

"Any whiff there's going to be reduction in the (Fed's) ammunition is met with selling," said James Camp, managing director of fixed income at Eagle Asset Management.

The selloff was broad. All 10 sectors in the Standard's & Poor's 500 fell, led by high-dividend stocks like telecommunications and utilities.

The Fed's $85 billion in monthly bond purchases have helped the U.S. economy by keeping long-term interest rates low and encouraging borrowing and investing. Now, it looks like the Fed is closer to ending that program as the U.S. economy improves.

The stock market drifted lower for most of the day, ahead of a scheduled statement from the Fed and a press conference by Chairman Ben Bernanke. The Dow was down just 16 points shortly before the central bank released a policy statement and economic outlook at 2 p.m.

Stocks started to fall after the Fed's statement. The selling accelerated after Bernanke began speaking at 2:30 p.m. The Dow Jones industrial average fell 206.04 points, or 1.4 percent, to 15,112.19. Other indexes also fell.

Bond and currency investors reacted more sharply to the Fed's news. Bond yields spiked as investors anticipated a slowdown in the Fed's purchases.

The yield on the 10-year Treasury note jumped to 2.31 percent, its highest in 15 months. The yield on the note started the day at 2.21 percent.

An index measuring the dollar against six other currencies surged 1 percent. The dollar rose against the Japanese yen, the euro and other currencies as traders anticipated higher U.S. rates.

The Standard & Poor's 500 index fell 22.88 points, or 1.4 percent, to 1,628.93.

For weeks, investors have been trying to figure out when the central bank will start to ease back on its bond purchases.

Speaking to reporters Wednesday, Bernanke said the bank could start scaling back its purchases later this year if the economy continues to improve. He said purchases could end by the middle of next year, and said reductions would occur in "measured steps."

Investors and traders were overreacting to the possibility of less stimulus, some analysts said. The economy will be strong enough for the Fed to start cutting back this year.

"I'm not really seeing a lot of reason for bonds to be selling off like they have or for the (stock) market to be down," said Scott Wren, a senior equity strategist at Wells Fargo Advisors. "If the market sells off on this, you have to view it as an opportunity," to buy.

The Fed's policy of low interest rates coupled with bond-buying has been a major factor in driving stocks higher since bottoming out in March 2009. The S&P 500 has gained 14.2 percent this year and has advanced more than 141 percent since its recession low.

In commodities trading, the price of crude oil fell 20 cents, or 0.2 percent, to $98.24 a barrel. The price of gold rose $7.10, or 0.5 percent, to $1,374 an ounce.

In other U.S. stock trading, the Nasdaq composite fell 38.98 points, or 1.1 percent, to 3,443.20.

 

[bigdog]

Source: http://finance.yahoo.com

There was no let-up in the flight from stocks and bonds Thursday as the Dow Jones industrial average plunged 353 points and wiped out almost two months of gains.

A day after the Federal Reserve roiled U.S financial markets when it said it could step back from its aggressive economic stimulus program later this year, financial markets continued to slide. A slowdown in Chinese manufacturing added to Wall Street's worries.

The breadth of the sell-off was seen across global financial markets, from sharply lower stock markets in Asia to falling government bond prices in Europe and the U.S. Gold also plunged.

The Dow's drop ”” which knocked the average down 2.3 percent to 14,758.32 ”” was its biggest since November 2011. It comes just three weeks after the blue-chip index reached an all-time high of 15,409.

The Standard & Poor's 500 lost 40.74 points, or 2.5 percent, to 1,588.19. It also reached a record high last month, peaking at 1,669.

Small-company stocks fell more than the rest of the market, a sign that investors are aggressively reducing risk.

In U.S. government debt, the yield on the benchmark 10-year note rose to its highest level since August 2011.

A Fed policy statement and comments from Chairman Ben Bernanke started the selling in stocks and bonds Wednesday. Bernanke said the Fed expects to scale back its massive bond-buying program later this year and end it entirely by mid-2014 if the economy continues to improve.

The bank has been buying $85 billion a month in Treasury and mortgage bonds, a program that has kept borrowing costs near historic lows for consumers and business. It has also helped boost the stock market.

Alec Young, a global equity strategist at S&P Capital IQ, said investors weren't expecting Bernanke to say the program could end so quickly, and are adjusting their portfolios in anticipation of higher U.S. interest rates.

"What we're seeing is a pretty significant sea-change in investor strategy," Young said.

As financial markets dropped, investors likely put the proceeds of their sales in cash as they waited for the dust to settle, said Quincy Krosby, a market strategist at Prudential Financial.

Investors "are raising cash right now, for fear the deterioration will continue," said Krosby.

The yield on the 10-year Treasury note rose to 2.41 percent, from 2.35 percent Wednesday. It's up sharply since May 3, when it hit a year low of 1.63 percent.

Government bonds are used as benchmarks for mortgage rates. The sharp increase in yields prompted investors to sell the stocks of homebuilders, whose business could be hurt if the pace of home buying slows down. Even an encouraging report on home sales Thursday failed to arrest the slide.

The NYSE DOW closed LOWER ▼ -353.87 points or ▼ -2.34% Thursday, 20 June 2013
Symbol …........Last ......Change.....
Dow_Jones 14,758.32 ▼ -353.87 ▼ -2.34%
Nasdaq___ 3,364.64 ▼ -78.57 ▼ -2.28%
S&P_500__ 1,588.19 ▼ -40.74 ▼ -2.50%
30_Yr_Bond 3.510 ▲ 0.10 ▲ 2.93%

NYSE Volume 5,606,030,000
Nasdaq Volume 2,035,062,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,159.51 ▼ -189.31 ▼ -2.98%
DAX_____ 7,928.48 ▼ -268.60 ▼ -3.28%
CAC_40__ 3,698.93 ▼ -140.41 ▼ -3.66%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,743.90 ▼ -97.90 ▼ -2.02%
Shanghai_Comp 2,084.02 ▼ -59.43 ▼ -2.77%
Taiwan_Weight 7,898.91 ▼ -108.48 ▼ -1.35%
Nikkei_225____ 13,014.58 ▼ -230.64 ▼ -1.74%
Hang_Seng____ 20,382.87 ▼ -604.02 ▼ -2.88%
Strait_Times___ 3,133.26 ▼ -80.53 ▼ -2.51%
NZX_50_Index__ 4,398.52 ▼ -47.03 ▼ -1.06%

http://finance.yahoo.com/news/stocks-extend-slide-china-adds-171624378.html

Stocks Extend Slide as China Adds to Worries

Stocks, bonds extend slide as China adds to market fears of Fed stimulus pullback

By Steve Rothwell, AP Markets Writer

There was no let-up in the flight from stocks and bonds Thursday as the Dow Jones industrial average plunged 353 points and wiped out almost two months of gains.

A day after the Federal Reserve roiled U.S financial markets when it said it could step back from its aggressive economic stimulus program later this year, financial markets continued to slide. A slowdown in Chinese manufacturing added to Wall Street's worries.

The breadth of the sell-off was seen across global financial markets, from sharply lower stock markets in Asia to falling government bond prices in Europe and the U.S. Gold also plunged.

The Dow's drop ”” which knocked the average down 2.3 percent to 14,758.32 ”” was its biggest since November 2011. It comes just three weeks after the blue-chip index reached an all-time high of 15,409.

The Standard & Poor's 500 lost 40.74 points, or 2.5 percent, to 1,588.19. It also reached a record high last month, peaking at 1,669.

Small-company stocks fell more than the rest of the market, a sign that investors are aggressively reducing risk.

In U.S. government debt, the yield on the benchmark 10-year note rose to its highest level since August 2011.

A Fed policy statement and comments from Chairman Ben Bernanke started the selling in stocks and bonds Wednesday. Bernanke said the Fed expects to scale back its massive bond-buying program later this year and end it entirely by mid-2014 if the economy continues to improve.

The bank has been buying $85 billion a month in Treasury and mortgage bonds, a program that has kept borrowing costs near historic lows for consumers and business. It has also helped boost the stock market.

Alec Young, a global equity strategist at S&P Capital IQ, said investors weren't expecting Bernanke to say the program could end so quickly, and are adjusting their portfolios in anticipation of higher U.S. interest rates.

"What we're seeing is a pretty significant sea-change in investor strategy," Young said.

As financial markets dropped, investors likely put the proceeds of their sales in cash as they waited for the dust to settle, said Quincy Krosby, a market strategist at Prudential Financial.

Investors "are raising cash right now, for fear the deterioration will continue," said Krosby.

The yield on the 10-year Treasury note rose to 2.41 percent, from 2.35 percent Wednesday. It's up sharply since May 3, when it hit a year low of 1.63 percent.

Government bonds are used as benchmarks for mortgage rates. The sharp increase in yields prompted investors to sell the stocks of homebuilders, whose business could be hurt if the pace of home buying slows down. Even an encouraging report on home sales Thursday failed to arrest the slide.

PulteGroup plunged $1.89, or 9.1 percent, to $18.87. D.R. Horton fell $2.13, also 9.1 percent, to $21.31.

Markets were also unnerved after manufacturing in China slowed at a faster pace this month as demand weakened. That added to concerns about growth in the world's second-largest economy. A monthly purchasing managers index from HSBC fell to a nine-month low of 48.3 in June. Numbers below 50 indicate a contraction.

Earlier in other global markets, Japan's Nikkei index lost 1.7 percent. The FTSE 100 index of leading British shares fell 3 percent while Germany's DAX dropped 3.3 percent.

In currency trading, the dollar rose against the euro and the Japanese yen.

In commodities trading, gold plunged to its lowest point since September 2010, falling $87.80, or 6.4 percent, to $1,286.20 an ounce.

Traders sold the precious metal as its appeal as insurance against inflation and a weak dollar faded. Both became less of an issue after the Fed said it was contemplating an end to its bond-buying program.

The rising dollar pushed oil prices lower. A stronger dollar makes oil more expensive for holders of other currencies. The price of crude oil fell $2.84, or 2.9 percent, to finish at $95.40 a barrel in New York, its biggest drop since November

Some investors said the sell-off in stocks may be overdone. The Fed is considering easing back on its stimulus because the economy is improving. The central bank has upgraded its outlook for unemployment and economic growth.

The S&P 500 is still up 11.3 percent, for the year, not far from its full-year increase of 13.4 percent last year.

"People are overreacting a little bit," said Gene Goldman, head of research at Cetera Financial Group. "It goes back to the fundamentals, the economy is improving."

In other trading, the Nasdaq composite fell 78.57 points, or 2.3 percent, to 3,364.63.

Among other stocks making big moves:

”” GameStop, a video game store chain that sells new and used games, rose $2.41, or 6.3 percent, to $40.94 after Microsoft backpedaled and said that there will be no limitations on sharing games on its upcoming Xbox One gaming console.

”” Rite Aid fell 23 cents, or 7.4 percent, to $2.88 after the nation's third-largest drugstore chain lowered its forecast for 2014 earnings.

 

[bigdog]

Source: http://finance.yahoo.com

Traders decided that the stock market has suffered enough, at least for now.

After a two-day plunge, stocks ended the week with an advance on Friday, suggesting that Wall Street may be successfully weaned from the Federal Reserve's easy money after all.

"Saner heads are prevailing," said Jim Dunigan, chief investment officer at PNC Wealth Management. "People are looking a little deeper into the message from the Fed ”” the economy is getting better," he said. "At the end of the day that's a positive."

The Fed's move also pushed up the yield on the 10-year Treasury note to the highest level in almost two years as investors bet that U.S. interest rates will rise.

Investors had known that sooner or later the Fed would quit spending $85 billion per month pumping money into the U.S. economy.

That money has been a big driver behind the stock market's bull run the last four years. It led to low interest rates that encouraged borrowing for everything from factory machinery to commercial airplanes to home renovations. Has the economy been great? No. Unemployment is still high and U.S. growth has been anemic. But it could have been worse. Investors were confident enough in a growing economy that the Standard & Poor's 500 index hit an all-time high of 1,669 on May 21.

Then on Wednesday, the Fed said it would aim to turn off that spigot by the middle of next year as long as the economy is strong enough.

Just because investors knew it was coming didn't mean they liked it. The Dow dropped 560 points on Wednesday and Thursday.

Investors recovered their mojo on Friday. The Dow Jones industrial average rose 41.08 points, or 0.3 percent, to close at 14,799.40. The Standard & Poor's 500 index rose 4.24 points, or 0.3 percent to close at 1,592.43.

The gains were led by the kinds of stocks that investors favor when they want to play it safe. Makers of consumer staples, utilities, and health care companies rose the most of the 10 industries in the S&P 500 index. The only two categories that fell were technology stocks and companies that make basic materials.

Friday's gain wasn't enough to erase the market's loss for the week. The S&P 500 fell 2.1 percent for the week, and the Dow was down 1.8 percent. Stocks have now fallen two weeks in a row, and four of the past five.

The S&P 500 is still up 11.7 percent, for the year, not far from its full-year increase of 13.4 percent last year.

The NYSE DOW closed HIGHER ▲ 41.08 points or ▲ 0.28% Friday, 21 June 2013
Symbol …........Last ......Change.....
Dow_Jones 14,799.40 ▲ 41.08 ▲ 0.28%
Nasdaq___ 3,357.25 ▼ -7.39 ▼ -0.22%
S&P_500__ 1,592.43 ▲ 4.24 ▲ 0.27%
30_Yr_Bond 3.570 ▲ 0.05 ▲ 1.51%

NYSE Volume 6,433,426,000
Nasdaq Volume 2,919,954,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,116.17 ▼ -43.34 ▼ -0.70%
DAX_____ 7,789.24 ▼ -139.24 ▼ -1.76%
CAC_40__ 3,658.04 ▼ -40.89 ▼ -1.11%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,723.80 ▼ -20.10 ▼ -0.42%
Shanghai_Comp 2,073.10 ▼ -10.93 ▼ -0.52%
Taiwan_Weight 7,793.31 ▼ -105.60 ▼ -1.34%
Nikkei_225____ 13,230.13 ▲ 215.55 ▲ 1.66%
Hang_Seng____ 20,263.31 ▼ -119.56 ▼ -0.59%
Strait_Times___ 3,124.45 ▼ -8.81 ▼ -0.28%
NZX_50_Index__ 4,363.07 ▼ -35.45 ▼ -0.81%

http://finance.yahoo.com/news/stock...lvbnMEdGVzdANIUl9Tb2NpYWxfTGlnaHRib3g-;_ylv=3

Stocks recover on Wall Street after a 2-day plunge

Stocks recover after a 2-day plunge caused by anxiety over the prospect of a Fed pullback

By Joshua Freed, AP Business Writer

Traders decided that the stock market has suffered enough, at least for now.

After a two-day plunge, stocks ended the week with an advance on Friday, suggesting that Wall Street may be successfully weaned from the Federal Reserve's easy money after all.

"Saner heads are prevailing," said Jim Dunigan, chief investment officer at PNC Wealth Management. "People are looking a little deeper into the message from the Fed ”” the economy is getting better," he said. "At the end of the day that's a positive."

The Fed's move also pushed up the yield on the 10-year Treasury note to the highest level in almost two years as investors bet that U.S. interest rates will rise.

Investors had known that sooner or later the Fed would quit spending $85 billion per month pumping money into the U.S. economy.

That money has been a big driver behind the stock market's bull run the last four years. It led to low interest rates that encouraged borrowing for everything from factory machinery to commercial airplanes to home renovations. Has the economy been great? No. Unemployment is still high and U.S. growth has been anemic. But it could have been worse. Investors were confident enough in a growing economy that the Standard & Poor's 500 index hit an all-time high of 1,669 on May 21.

Then on Wednesday, the Fed said it would aim to turn off that spigot by the middle of next year as long as the economy is strong enough.

Just because investors knew it was coming didn't mean they liked it. The Dow dropped 560 points on Wednesday and Thursday.

Investors recovered their mojo on Friday. The Dow Jones industrial average rose 41.08 points, or 0.3 percent, to close at 14,799.40. The Standard & Poor's 500 index rose 4.24 points, or 0.3 percent to close at 1,592.43.

The gains were led by the kinds of stocks that investors favor when they want to play it safe. Makers of consumer staples, utilities, and health care companies rose the most of the 10 industries in the S&P 500 index. The only two categories that fell were technology stocks and companies that make basic materials.

Friday's gain wasn't enough to erase the market's loss for the week. The S&P 500 fell 2.1 percent for the week, and the Dow was down 1.8 percent. Stocks have now fallen two weeks in a row, and four of the past five.

The real question will be whether the sell-off continues next week, said Frank Fantozzi, CEO of Planned Financial Services. So far, the market's swoon this week appears to be more of an adjustment than the beginning of a long-term rout. "If the flow out of equities starts to increase, this might be the pullback we've been waiting for," he said.

Many investors have been predicting some kind of pullback in the market following its nearly unbroken advance since last fall. The S&P 500 index rose for seven straight months through May. So far in June it's down 2.1 percent.

The yield on the 10-year Treasury note hit 2.54 percent, up from 2.42 percent late Thursday. It has risen sharply since Wednesday as investors sold bonds in anticipation that the Fed would slow, and eventually end, its bond purchases, if the U.S. recovery continues.

The yield, which is a benchmark for interest rates on many kinds of loans including home mortgages, was as low as 1.63 percent as recently as May 3.

Technology shares lagged the market after business software maker Oracle reported flat revenue late Thursday, even though analysts expected an increase. Oracle plunged $3.07, or 9 percent, to $30.14, the biggest drop in the S&P 500 index. Oracle is struggling to adapt as customers shift away from software installed on their own computers toward software that runs remotely.

The Nasdaq composite index, which is heavily weighted with technology stocks, fell 7.39 points, or 0.2 percent, to 3,357.25. Apple, the biggest stock in the index, fell $3.34, or 0.8 percent, to $413.50. Microsoft fell 23 cents, or 0.7 percent, to $33.27.

The price of gold recovered after plunging the day before. Gold rose $5.80, or 0.5 percent, to $1,292 an ounce. Crude oil fell $1.45, or 1.5 percent, to $93.69 a barrel in New York.

The dollar rose against other currencies as traders anticipated that U.S. interest rates would rise as the Fed winds down its bond purchases.

Among other stocks making big moves:

””Darden Restaurants, which runs Olive Garden and Red Lobster, fell $1.11, or 2 percent, to $50.12 after rising expenses hurt its fourth-quarter earnings.

”” Spreadtrum Communications jumped $3.62, or 16 percent, to $25.91 after the Chinese smartphone chip maker said its board is considering a buyout offer valued at about $1.39 billion from Tsinghua Holdings.

”” Facebook rose 63 cents, or 2.6 percent, to $24.53 after saying it will add video to its popular photo-sharing app Instagram, following on the heels of Twitter's growing video-sharing app, Vine.

A Fed policy statement and comments from Fed Chairman Ben Bernanke started the selling in stocks, bonds and commodities Wednesday. Bernanke said the Fed expects to scale back its bond-buying program later this year and end it by mid-2014 if the economy continues to improve. The bank has been buying Treasury and mortgage bonds, which has made borrowing cheap for consumers and businesses. The program has also encouraged investors to buy stocks instead of bonds.

The S&P 500 is still up 11.7 percent, for the year, not far from its full-year increase of 13.4 percent last year.

4568

 

[bigdog]

Source: http://finance.yahoo.com

More signs of distress in China's economy and rising bond yields led to a broad sell-off in stocks Monday, leaving the market down 5.7 percent from its all-time high last month.

It's the first pullback of 5 percent or more since November.

U.S. trading started with a slump Monday. The market recovered much of its loss, then fell back toward steeper losses again. By the close of trading the big stock indexes were clinging to modest gains for the second quarter. The last day of trading for the quarter is Friday.

Things were rough for stock investors in the morning. An overnight plunge in China caused by a spike in lending rates led to declines in Europe. China's Shanghai Composite Index fell 5 percent, its biggest decline in four years. The drop was prompted by a government crackdown on off-balance sheet lending, which made investors worry about China's economic growth. Then France's benchmark stock index fell 1.7 percent, Germany's 1.2 percent.

U.S. traders took one look at that and sold. The Dow Jones industrial average fell as much as 248 points in the first hour of trading. The yield on the 10-year Treasury note spiked to its highest in almost two years as the sell-off brought down prices of U.S. government debt. Gold and other metals also fell.

Stocks got closer to break-even around midday before falling again in the last hour. The Dow finished down 139.84 points, or 0.9 percent, at 14,659.56. The S&P 500 index fell 19.34 points, or 1.2 percent, to 1,573.09. The Nasdaq dropped 36.49 points, or 1.1 percent, to 3,320.76.

All 10 industry groups in the S&P 500 fell. The biggest drop was 1.8 percent for bank and financial stocks. Bank of America fell the most among major bank stocks, giving up 39 cents, or 3.1 percent, to $12.30.

Getting reliable information out of China is difficult, so it takes investors longer to decide how to react to developments there, said Gary Thayer, chief macro strategist for Wells Fargo Advisors.

The turbulence is also another a sign of how vulnerable financial markets remain to any comments from the Fed about its $85 billion in monthly bond purchases, which have kept interest rates at historic lows and helped drive the stock market's rally the last four years. On Wednesday and Thursday, the S&P plunged 3.9 percent after the central bank said its bond-buying program could wrap up by the middle of next year as long as economic conditions continue to improve. Stocks edged up Friday, but still had their worst week in two months.

"I think investors are overreacting to the prospects of a change in Fed policy," Thayer said. He noted that unemployment is down, inflation is low. "These are good economic conditions."

Gold fell $14.90, or 1.2 percent, to $1,277.10. Other metals were down, too. Crude oil rose $1.49, or 1.6 percent, to $95.18 per barrel.

The NYSE DOW closed LOWER ▼ -139.84 points or ▼ -0.94% Monday, 24 June 2013
Symbol …........Last ......Change.....
Dow_Jones 14,659.56 ▼ -139.84 ▼ -0.94%
Nasdaq___ 3,320.76 ▼ -36.49 ▼ -1.09%
S&P_500__ 1,573.09 ▼ -19.34 ▼ -1.21%
30_Yr_Bond 3.560 ▼ -0.01 ▼ -0.22%

NYSE Volume 5,399,083,000
Nasdaq Volume 1,986,131,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,029.10 ▼ -130.41 ▼ -2.12%
DAX_____ 7,692.45 ▼ -96.79 ▼ -1.24%
CAC_40__ 3,595.63 ▼ -62.41 ▼ -1.71%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,651.10 ▼ -72.70 ▼ -1.54%
Shanghai_Comp 1,963.24 ▼ -109.86 ▼ -5.30%
Taiwan_Weight 7,758.03 ▼ -35.28 ▼ -0.45%
Nikkei_225____ 13,062.78 ▼ -167.35 ▼ -1.26%
Hang_Seng____ 19,813.98 ▼ -449.33 ▼ -2.22%
Strait_Times___ 3,074.31 ▼ -50.14 ▼ -1.60%
NZX_50_Index__ 4,364.04 ▲ 0.98 ▲ 0.02%

http://finance.yahoo.com/news/china-slump-higher-bond-yields-134723948.html

China slump, higher bond yields weigh on markets

Wall Street recovers much of early loss caused by jitters over China plunge, higher US rates

By Joshua Freed, AP Business Writer

More signs of distress in China's economy and rising bond yields led to a broad sell-off in stocks Monday, leaving the market down 5.7 percent from its all-time high last month.

It's the first pullback of 5 percent or more since November.

U.S. trading started with a slump Monday. The market recovered much of its loss, then fell back toward steeper losses again. By the close of trading the big stock indexes were clinging to modest gains for the second quarter. The last day of trading for the quarter is Friday.

Things were rough for stock investors in the morning. An overnight plunge in China caused by a spike in lending rates led to declines in Europe. China's Shanghai Composite Index fell 5 percent, its biggest decline in four years. The drop was prompted by a government crackdown on off-balance sheet lending, which made investors worry about China's economic growth. Then France's benchmark stock index fell 1.7 percent, Germany's 1.2 percent.

U.S. traders took one look at that and sold. The Dow Jones industrial average fell as much as 248 points in the first hour of trading. The yield on the 10-year Treasury note spiked to its highest in almost two years as the sell-off brought down prices of U.S. government debt. Gold and other metals also fell.

Stocks got closer to break-even around midday before falling again in the last hour. The Dow finished down 139.84 points, or 0.9 percent, at 14,659.56. The S&P 500 index fell 19.34 points, or 1.2 percent, to 1,573.09. The Nasdaq dropped 36.49 points, or 1.1 percent, to 3,320.76.

All 10 industry groups in the S&P 500 fell. The biggest drop was 1.8 percent for bank and financial stocks. Bank of America fell the most among major bank stocks, giving up 39 cents, or 3.1 percent, to $12.30.

Getting reliable information out of China is difficult, so it takes investors longer to decide how to react to developments there, said Gary Thayer, chief macro strategist for Wells Fargo Advisors.

The turbulence is also another a sign of how vulnerable financial markets remain to any comments from the Fed about its $85 billion in monthly bond purchases, which have kept interest rates at historic lows and helped drive the stock market's rally the last four years. On Wednesday and Thursday, the S&P plunged 3.9 percent after the central bank said its bond-buying program could wrap up by the middle of next year as long as economic conditions continue to improve. Stocks edged up Friday, but still had their worst week in two months.

"I think investors are overreacting to the prospects of a change in Fed policy," Thayer said. He noted that unemployment is down, inflation is low. "These are good economic conditions."

Gold fell $14.90, or 1.2 percent, to $1,277.10. Other metals were down, too. Crude oil rose $1.49, or 1.6 percent, to $95.18 per barrel.

Pullbacks that occur during bull markets tend to be "nasty and brutish" ”” but short, said John Manley, chief equity strategist at Wells Fargo Funds Management. He said it's common to get declines of 3 percent to 7 percent "as the market restores a reverence to risk to the investing public."

The last time the U.S. stock market had a full-blown correction ”” defined as a drop of at least 10 percent from a peak ”” was July 22-Oct. 3, 2011, when the S&P 500 fell 18.3 percent. That fall was caused by concern that a fight between U.S. lawmakers over extending the debt ceiling would push the U.S. into default.

Since starting its bull run in March 2009, the S&P 500 has had six pullbacks of between 5 and 9 percent and two corrections. So far, the market has come back stronger from each setback. The S&P is still up 133 percent during this four-year bull market.

"Pullbacks are a natural occurrence in markets," said Janet Engels, senior vice president and director of the private client research group at RBC Wealth Management. "We likely have further to go."

The yield on the 10-year note rose slightly to 2.55 percent. Earlier in the day it was at 2.67, its highest level in almost two years. The yield has surged from its 2013 low of 1.63 percent on May 3. The increase accelerated last week after the Federal Reserve laid out the possible timetable for curtailing its bond-buying program. Yields rise when demand for bonds weakens.

The Fed's easy-money policies have kept bond yields and other interest rates artificially low since the financial crisis of 2008, making borrowing cheaper. The 10-year yield is used as a benchmark for many kinds of loans to individuals and businesses, including home mortgages.

The last time the yield was above 3 percent was late July, 2011. The last time it was consistently above 4 percent was July 2008, two months before the peak of the financial crisis.

Other stocks with big moves included:

”” PulteGroup slumped 50 cents, or 2.7 percent, to $18.31. Investors have worried that higher U.S. interest rates will hurt homebuilding companies by making mortgages more expensive.

”” Tenet Healthcare rose $1.88, or 4.5 percent, to $43.73 after offering to buy Vanguard Health Systems Inc. for $1.8 billion. The offer of $21 per share pushed Vanguard stock up $8.33, or 67 percent, to $20.70.

”” Facebook fell 60 cents, or 2.4 percent, to $23.93. Monday was the first full trading day after Facebook acknowledged it had accidentally exposed contact information for 6 million users to some other users.

”” Apple fell $10.96, or 2.7 percent, to $402.50 after an analyst said the company appears to have cut back iPhone production. The company didn't have any immediate comment.

 

[bigdog]

Source: http://finance.yahoo.com

Wall Street got back to focusing on the economy instead of the Federal Reserve on Tuesday, sending stocks higher.

Four reports showed a brightening U.S. economy. Housing and manufacturing continued to improve, and consumer confidence hit its highest level in 5 1/2 years.

The major U.S. stock indexes closed higher, with the Dow Jones industrial average shooting up 100.75 points, or 0.7 percent, to 14,760.31. The Standard & Poor's index rose 14.94 points, or 1 percent, to 1,588.03.

The triple-digit rise in the Dow continues a bout of market volatility caused by investors and traders who are worried about the Fed ending its economic stimulus. Last Wednesday, Fed Chairman Ben Bernanke said he expects the Fed to end its bond buying by the middle of 2014 if it feels the economy can manage without that stimulus.

The Dow then plunged by triple digits on three of the next four trading days, with investors worried that the market would struggle without the Fed propping it up.

Some investors have concluded that the recent sell-offs were overblown. Quincy Krosby, a market strategist at Prudential Financial, guessed that shorter-term traders were the ones buying stocks Tuesday because they judged that parts of the market were "oversold."

Long-term investors are likely still sitting on the sidelines, waiting for further signs that markets are becoming less volatile, she said.

Among the biggest gainers were big dividend payers like phone and power companies. These are stocks that have been hit the hardest by the recent sell-off.

Ben Schwartz, chief market strategist at Lightspeed Financial in Chicago, described Tuesday as a day for the market to stabilize after the recent big plunges. But he predicted that the market could be volatile for the rest of the year, and others said they thought the stock indexes had already reached their high points.

The fact that the second quarter ends on Friday will also likely complicate the market's performance this week. Money managers may pull out because they need to book gains for clients.

The stronger economic news for the U.S. led investors to sell U.S. government bonds, a sign that they're more comfortable putting money in stocks. The yield on the 10-year Treasury note, a benchmark for many types of loans, rose to 2.6 percent from 2.54 percent late Monday. That's part of a longer-term trend: Investors have been selling bonds in anticipation of the Fed winding down its bond-buying program.

The NYSE DOW closed HIGHER ▲ 100.75 points or ▲ 0.69% Tuesday, 25 June 2013
Symbol …........Last ......Change.....
Dow_Jones 14,760.31 ▲ 100.75 ▲ 0.69%
Nasdaq___ 3,347.89 ▲ 27.13 ▲ 0.82%
S&P_500__ 1,588.03 ▲ 14.94 ▲ 0.95%
30_Yr_Bond 3.610 ▲ 0.05 ▲ 1.49%

NYSE Volume 4,218,977,000
Nasdaq Volume 1,625,099,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,101.91 ▲ 72.81 ▲ 1.21%
DAX_____ 7,811.30 ▲ 118.85 ▲ 1.55%
CAC_40__ 3,649.82 ▲ 54.19 ▲ 1.51%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,633.50 ▼ -17.60 ▼ -0.38%
Shanghai_Comp 1,959.51 ▼ -3.73 ▼ -0.19%
Taiwan_Weight 7,663.23 ▼ -94.80 ▼ -1.22%
Nikkei_225____ 12,969.34 ▼ -93.44 ▼ -0.72%
Hang_Seng____ 19,855.72 ▲ 41.74 ▲ 0.21%
Strait_Times___ 3,089.93 ▲ 15.62 ▲ 0.51%
NZX_50_Index__ 4,316.99 ▼ -47.05 ▼ -1.08%

http://finance.yahoo.com/news/market-rises-less-fed-chatter-192631153.html

Market rises: less on Fed chatter, more on economy

Stocks push higher, helped by economy, not Fed guessing; home prices, consumer confidence up

By Christina Rexrode, AP Business Writer

Wall Street got back to focusing on the economy instead of the Federal Reserve on Tuesday, sending stocks higher.

Four reports showed a brightening U.S. economy. Housing and manufacturing continued to improve, and consumer confidence hit its highest level in 5 1/2 years.

The major U.S. stock indexes closed higher, with the Dow Jones industrial average shooting up 100.75 points, or 0.7 percent, to 14,760.31. The Standard & Poor's index rose 14.94 points, or 1 percent, to 1,588.03.

The triple-digit rise in the Dow continues a bout of market volatility caused by investors and traders who are worried about the Fed ending its economic stimulus. Last Wednesday, Fed Chairman Ben Bernanke said he expects the Fed to end its bond buying by the middle of 2014 if it feels the economy can manage without that stimulus.

The Dow then plunged by triple digits on three of the next four trading days, with investors worried that the market would struggle without the Fed propping it up.

Some investors have concluded that the recent sell-offs were overblown. Quincy Krosby, a market strategist at Prudential Financial, guessed that shorter-term traders were the ones buying stocks Tuesday because they judged that parts of the market were "oversold."

Long-term investors are likely still sitting on the sidelines, waiting for further signs that markets are becoming less volatile, she said.

Among the biggest gainers were big dividend payers like phone and power companies. These are stocks that have been hit the hardest by the recent sell-off.

The big economic reports Tuesday revealed:

””Orders for durable goods rose 3.6 percent in May, matching April's gain. The gauge is important because U.S. manufacturing has generally struggled this year as demand for American exports slows in other parts of the world.

””Home prices rose 2.5 percent in April compared with March, the biggest month-over-month gain since 2000, according to the S&P/Case-Shiller index of 20 cities.

”” The Conference Board's consumer confidence index jumped to 81.4 in June, the best reading since January 2008. The May reading, however, was revised down to 74.3 from the original estimate of 76.2.

”” Sales of new homes rose in May to a seasonally adjusted annual rate of 476,000, the Commerce Department said. That was the fastest pace since July 2008. Though sales of new homes remain below the 700,000 annual rate that most economists consider healthy, the pace has jumped 29 percent from a year ago.

Ben Schwartz, chief market strategist at Lightspeed Financial in Chicago, described Tuesday as a day for the market to stabilize after the recent big plunges. But he predicted that the market could be volatile for the rest of the year, and others said they thought the stock indexes had already reached their high points.

The fact that the second quarter ends on Friday will also likely complicate the market's performance this week. Money managers may pull out because they need to book gains for clients.

The stronger economic news for the U.S. led investors to sell U.S. government bonds, a sign that they're more comfortable putting money in stocks. The yield on the 10-year Treasury note, a benchmark for many types of loans, rose to 2.6 percent from 2.54 percent late Monday. That's part of a longer-term trend: Investors have been selling bonds in anticipation of the Fed winding down its bond-buying program.

The price of gold slipped $2 to $1,275.10 an ounce, and the price of crude oil rose 14 cents to $95.32 a barrel.

Among stocks making big moves:

””Walgreen, the nation's largest drugstore chain, slipped after reporting earnings and revenue that missed analysts' expectations. Walgreen's stock fell $2.83, or nearly 6 percent, to $45.22.

””Barnes & Noble plunged after reporting a loss that more than doubled in the latest quarter. The bookseller struggled to compete with online retailers and its Nook e-book continued to lose money. The stock fell $3.21, or more than 17 percent, to $15.61.

””Clothing chain Men's Wearhouse rose after saying it had fired executive chairman George Zimmer, the company's founder and star of its TV commercials, because he had advocated for "significant changes that would enable him to regain control," according to the company. The stock rose $2, or nearly 6 percent, to $37.13.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market is focusing on the positive.

Major stock indexes rose for a second day on Wednesday. It was the first two-day stretch of gains since the Federal Reserve gave a timetable for throttling back its economic stimulus a week ago.

Even news that the economy grew at a much slower annual rate in the first quarter than previously estimated ”” 1.8 percent versus 2.4 percent ”” didn't dampen the buying. In fact, it persuaded some traders that the Fed could extend its easy money policies beyond next year. That would likely be a boon for the economy and the stock market.

The market's gains were decisive. The Dow Jones industrial average jumped 149.83 points, or 1 percent, 14,910.14. All 10 sectors in the Standard & Poor's 500 index were higher, led by health care and utilities.

Investors also seemed to realize that they dumped too many stocks last week, when they panicked after the Fed outlined plans on how it might eventually end its stimulus measures.

"The sell-off was a little bit overdone," said David Coard, head of fixed-income sales and trading at Williams Capital Group in New York. "Sometimes you've got to take a breather."

The Standard & Poor's 500 rose 15.23, or 1 percent, to 1,603.26. The Nasdaq composite index gained 28.34, or 0.9 percent, to 3,376.22.

The yield on the 10-year Treasury note fell for the first time since June 14, slipping to 2.54 percent from 2.61 percent.

The price of gold plunged $45.30, or 3.6 percent, to $1,229.80 an ounce, its lowest price in three years. The reasons for the sell-off weren't entirely clear. Investors tend to buy gold when they're looking for a safe place to put money. Wednesday, they did that by buying stocks in dividend-rich, stable sectors ”” such as utilities ”” as well as government bonds.

The markets have been volatile for weeks, ever since Fed Chairman Ben Bernanke started hinting that a pullback in Fed stimulus programs would start soon. In the last 25 trading days, the Dow has ricocheted through 17 triple-digit swings, split almost evenly between ups and downs.

Still, some investors were already turning their attention away from the Fed and back toward company earnings. There they saw reason for caution, not optimism.

Analysts expect earnings to grow about 3 percent, though that is down from estimates as high as 15 percent a year ago, according to S&P Capital IQ. Revenue is expected to fall by 0.3 percent.

"We're not seeing any significant bottom-line growth," said Chip Cobb, senior vice president of BMT Asset Management in Bryn Mawr, Penn. "It's all been cost-cutting measures."

Chris Baggini, senior portfolio manager at Turner Investments in Berwyn, Penn., pointed out that the stocks that performed best are the kind that investors tend to buy when they're nervous about the economy.

Investors are "buying bonds and bond-like stocks," Baggini said.

Friday is the last trading day for the second quarter, which could also make the market's moves erratic. Money managers will be looking to get out of their holdings and book profits for clients before then.

The NYSE DOW closed HIGHER ▲ 149.83 points or ▲ 1.02% Wednesday, 26 June 2013
Symbol …........Last ......Change.....
Dow_Jones 14,910.14 ▲ 149.83 ▲ 1.02%
Nasdaq___ 3,376.22 ▲ 28.34 ▲ 0.85%
S&P_500__ 1,603.26 ▲ 15.23 ▲ 0.96%
30_Yr_Bond 3.570 ▼ -0.04 ▼ -1.05%

NYSE Volume 3,977,487,500
Nasdaq Volume 1,640,446,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,165.48 ▲ 63.57 ▲ 1.04%
DAX_____ 7,940.99 ▲ 129.69 ▲ 1.66%
CAC_40__ 3,726.04 ▲ 76.22 ▲ 2.09%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,707.80 ▲ 74.30 ▲ 1.60%
Shanghai_Comp 1,951.50 ▼ -8.01 ▼ -0.41%
Taiwan_Weight 7,784.80 ▲ 121.57 ▲ 1.59%
Nikkei_225____ 12,834.01 ▼ -135.33 ▼ -1.04%
Hang_Seng____ 20,338.55 ▲ 482.83 ▲ 2.43%
Strait_Times___ 3,104.40 ▲ 14.47 ▲ 0.47%
NZX_50_Index__ 4,393.61 ▲ 76.61 ▲ 1.77%

http://finance.yahoo.com/news/traders-breather-buying-stocks-bonds-203942038.html

Traders 'take a breather,' buying stocks and bonds

Stocks move higher as investors reassess just what the Fed meant; buying up bonds as well

By Christina Rexrode, AP Business Writer

The stock market is focusing on the positive.

Major stock indexes rose for a second day on Wednesday. It was the first two-day stretch of gains since the Federal Reserve gave a timetable for throttling back its economic stimulus a week ago.

Even news that the economy grew at a much slower annual rate in the first quarter than previously estimated ”” 1.8 percent versus 2.4 percent ”” didn't dampen the buying. In fact, it persuaded some traders that the Fed could extend its easy money policies beyond next year. That would likely be a boon for the economy and the stock market.

The market's gains were decisive. The Dow Jones industrial average jumped 149.83 points, or 1 percent, 14,910.14. All 10 sectors in the Standard & Poor's 500 index were higher, led by health care and utilities.

Investors also seemed to realize that they dumped too many stocks last week, when they panicked after the Fed outlined plans on how it might eventually end its stimulus measures.

"The sell-off was a little bit overdone," said David Coard, head of fixed-income sales and trading at Williams Capital Group in New York. "Sometimes you've got to take a breather."

The Standard & Poor's 500 rose 15.23, or 1 percent, to 1,603.26. The Nasdaq composite index gained 28.34, or 0.9 percent, to 3,376.22.

The yield on the 10-year Treasury note fell for the first time since June 14, slipping to 2.54 percent from 2.61 percent.

The price of gold plunged $45.30, or 3.6 percent, to $1,229.80 an ounce, its lowest price in three years. The reasons for the sell-off weren't entirely clear. Investors tend to buy gold when they're looking for a safe place to put money. Wednesday, they did that by buying stocks in dividend-rich, stable sectors ”” such as utilities ”” as well as government bonds.

The markets have been volatile for weeks, ever since Fed Chairman Ben Bernanke started hinting that a pullback in Fed stimulus programs would start soon. In the last 25 trading days, the Dow has ricocheted through 17 triple-digit swings, split almost evenly between ups and downs.

Still, some investors were already turning their attention away from the Fed and back toward company earnings. There they saw reason for caution, not optimism.

Analysts expect earnings to grow about 3 percent, though that is down from estimates as high as 15 percent a year ago, according to S&P Capital IQ. Revenue is expected to fall by 0.3 percent.

"We're not seeing any significant bottom-line growth," said Chip Cobb, senior vice president of BMT Asset Management in Bryn Mawr, Penn. "It's all been cost-cutting measures."

Chris Baggini, senior portfolio manager at Turner Investments in Berwyn, Penn., pointed out that the stocks that performed best are the kind that investors tend to buy when they're nervous about the economy.

Investors are "buying bonds and bond-like stocks," Baggini said.

Friday is the last trading day for the second quarter, which could also make the market's moves erratic. Money managers will be looking to get out of their holdings and book profits for clients before then.

Among companies making big moves:

””Gun manufacturer Smith & Wesson fell after its quarterly revenue missed analysts' forecasts. The stock slipped 21 cents, or 2.1 percent, to $9.78.

””Uniform company UniFirst fell after quarterly revenue missed analysts' expectations. Shares dipped $5.43, or 5.7 percent, to $90.22

””Adobe, maker of Photoshop, rose after a Jefferies analyst upgraded the stock to "Buy" from "Hold," praising its shift to an online, subscription-based model. The stock rose $1.31, or 3 percent, to $45.68.

 

[bigdog]

Source: http://finance.yahoo.com

Good news on jobs and consumer spending pushed stocks higher again Thursday.

The Dow Jones industrial average and the Standard & Poor's 500 index rose for a third straight day. Yields on Treasury securities fell for a second day, easing worries that a sudden spike in interest rates could hurt the economy.

Consumer spending rose 0.3 percent last month and incomes increased 0.5 percent, the most in three months, the government reported. The number of Americans seeking unemployment benefits fell 9,000 to 346,000 last week. The report added to evidence that the job market is improving modestly.

Stocks have rallied this week as investors took advantage of lower prices after a sell-off last week that erased 560 points from the Dow over Wednesday and Thursday. The market swooned after Federal Reserve Chairman Ben Bernanke said that the central bank could cut back on its stimulus later this year and possibly end it next year, if the economy continued to improve.

Even with the gains this week the index is still 293 points below where it was June 18, the day before the Fed laid out its plans for how it might wind down its stimulus.

The central bank is buying $85 billion in bonds every month to hold down long-term interest rates and encourage borrowing and spending. Fed stimulus has underpinned a stock market rally that started in March 2009 by encouraging investors to put money into risky assets.

"What's driving that market up is that people are realizing that they are in a 'win-win' situation," said Rick Robinson, a regional Chief Investment Officer at Wells Fargo Private Bank. "If you have good economic data that should be good for stocks, if you have poor economic data ... that means the Fed will probably have its (stimulus) longer."

The Dow closed up 114.35 points, or 0.8 percent, to 15,024.49. The S&P 500 index climbed 9.94 points, or 0.6 percent, to 1,613.20.

Nine of the 10 industry groups in the S&P 500 rose, led by financial stocks. Banks and insurers listed in the S&P 500 have gained 4 percent in the last three days. Materials companies were the only group that fell.

The Nasdaq composite rose 25.64 points, or 0.8 percent, to 3,401.86.

In a sign that investors were once again more confident in holding riskier assets, the Russell 2000 index of small-company stocks rose 16.09 points, or 1.7 percent, to 979.92, more than twice as much as other major indexes.

The yield on the 10-year Treasury note fell to 2.47 percent from 2.54 percent late Wednesday. The yield climbed as high 2.66 percent on Monday, the highest since August 2011. The rate has surged since May 3, when it touched its low for the year of 1.63 percent.

The NYSE DOW closed HIGHER ▲ 114.35 points or ▲ 0.77% Thursday, 27 June 2013
Symbol …........Last ......Change.....
Dow_Jones 15,024.49 ▲ 114.35 ▲ 0.77%
Nasdaq___ 3,401.86 ▲ 25.64 ▲ 0.76%
S&P_500__ 1,613.20 ▲ 9.94 ▲ 0.62%
30_Yr_Bond 3.550 ▼ -0.03 ▼ -0.76%

NYSE Volume 3,766,042,500
Nasdaq Volume 1,657,103,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,243.40 ▲ 77.92 ▲ 1.26%
DAX_____ 7,990.75 ▲ 49.76 ▲ 0.63%
CAC_40__ 3,762.19 ▲ 36.15 ▲ 0.97%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,784.80 ▲ 77.00 ▲ 1.64%
Shanghai_Comp 1,950.01 ▼ -1.48 ▼ -0.08%
Taiwan_Weight 7,883.90 ▲ 99.10 ▲ 1.27%
Nikkei_225____ 13,213.55 ▲ 379.54 ▲ 2.96%
Hang_Seng____ 20,440.08 ▲ 101.53 ▲ 0.50%
Strait_Times___ 3,118.03 ▲ 13.63 ▲ 0.44%
NZX_50_Index__ 4,416.96 ▲ 23.35 ▲ 0.53%

http://finance.yahoo.com/news/stock...lvbnMEdGVzdANIUl9Tb2NpYWxfTGlnaHRib3g-;_ylv=3

Stocks gain on encouraging news about the economy

Stocks rise on better news about spending and jobs; Dow has third straight triple-digit gain

By Steve Rothwell, AP Markets Writer

Good news on jobs and consumer spending pushed stocks higher again Thursday.

The Dow Jones industrial average and the Standard & Poor's 500 index rose for a third straight day. Yields on Treasury securities fell for a second day, easing worries that a sudden spike in interest rates could hurt the economy.

Consumer spending rose 0.3 percent last month and incomes increased 0.5 percent, the most in three months, the government reported. The number of Americans seeking unemployment benefits fell 9,000 to 346,000 last week. The report added to evidence that the job market is improving modestly.

Stocks have rallied this week as investors took advantage of lower prices after a sell-off last week that erased 560 points from the Dow over Wednesday and Thursday. The market swooned after Federal Reserve Chairman Ben Bernanke said that the central bank could cut back on its stimulus later this year and possibly end it next year, if the economy continued to improve.

Even with the gains this week the index is still 293 points below where it was June 18, the day before the Fed laid out its plans for how it might wind down its stimulus.

The central bank is buying $85 billion in bonds every month to hold down long-term interest rates and encourage borrowing and spending. Fed stimulus has underpinned a stock market rally that started in March 2009 by encouraging investors to put money into risky assets.

"What's driving that market up is that people are realizing that they are in a 'win-win' situation," said Rick Robinson, a regional Chief Investment Officer at Wells Fargo Private Bank. "If you have good economic data that should be good for stocks, if you have poor economic data ... that means the Fed will probably have its (stimulus) longer."

The Dow closed up 114.35 points, or 0.8 percent, to 15,024.49. The S&P 500 index climbed 9.94 points, or 0.6 percent, to 1,613.20.

Nine of the 10 industry groups in the S&P 500 rose, led by financial stocks. Banks and insurers listed in the S&P 500 have gained 4 percent in the last three days. Materials companies were the only group that fell.

The Nasdaq composite rose 25.64 points, or 0.8 percent, to 3,401.86.

In a sign that investors were once again more confident in holding riskier assets, the Russell 2000 index of small-company stocks rose 16.09 points, or 1.7 percent, to 979.92, more than twice as much as other major indexes.

The yield on the 10-year Treasury note fell to 2.47 percent from 2.54 percent late Wednesday. The yield climbed as high 2.66 percent on Monday, the highest since August 2011. The rate has surged since May 3, when it touched its low for the year of 1.63 percent.

Investors who have added bonds to their portfolios at the expense of stocks should consider selling some because yields are likely to rise further, said Doug Cote, chief market strategist at ING Investment Management. When yields rise, the value of bonds falls.

Bonds rose in value from 2007 until the middle of last year. The yield on the 10-year Treasury note fell to a record low of 1.39 percent last July.

"For the first time in five years, equities are the safest asset class," Cote said.

Higher yields on Treasury bonds translate into higher borrowing costs on many kinds of loans including home mortgages. Average U.S. rates on fixed mortgages surged this week to their highest levels in two years. Mortgage buyer Freddie Mac said Thursday that the average rate on a 30-year mortgage jumped to 4.46 percent. That's up from 3.93 percent last week and the highest since July 2011.

The average rate on a 15-year fixed mortgage, a popular refinancing instrument, soared this week to 3.50 percent ”” its highest point since August 2011 ”” from 3.04 percent last week.

Homebuilders got a lift from a report Thursday suggesting that the housing recovery remains intact. The number of people who signed contracts in May to buy a home jumped to the highest level in more than six years. D.R. Horton rose 79 cents, or 3.8 percent, to $21.71. Lennar gained $1.37 cents, or 3.8 percent, to $37.38.

Investors were also encouraged by comments from key Fed officials. The president of the New York branch of the Federal Reserve said the central bank would likely keep buying bonds if the economy failed to grow at the pace the Fed was expecting.

"If labor market conditions and the economy's growth momentum were to be less favorable than in the (Fed's) outlook ”” and this is what has happened in recent years ”” I would expect that the asset purchases would continue at a higher pace for longer," William Dudley said at a news conference in New York.

That message was reinforced by two other Fed officials Thursday. Jerome Powell, a member of the Fed's board in Washington, said investors appear to have incorrectly concluded that the Fed will taper its purchases soon. Dennis Lockhart, president of the Fed's Atlanta branch, said that the pace of purchases still depended on "how economic conditions evolve."

While the S&P 500 index is on track to record its first monthly loss since October, the index is still poised to end June with the best first half of a year since 1998, when it rose 17.7 percent. The index has gained 13.2 percent so far this year.

The market will likely remain volatile though the second half of the year as investors assess when the Fed will end its stimulus, said Kate Warne, investment strategist at retail brokerage firm Edward Jones.

"The general outlook for the economy is solid," Warne said. "The trend in stock prices is likely to continue to be higher, even though we'll see a lot more zig-zagging as everyone debates the timing of the Fed's next move."

The price of gold fell $18.20, or 1.5 percent, to $1,211.60 an ounce, following a 3.6 percent slump Wednesday. It traded below $1,200 for the first time since August 2010. Gold has dropped 28 percent this year as Treasury yields have risen and the dollar has strengthened, diminishing gold's appeal as an alternative investment.

Crude oil rose $1.55, or 1.6 percent, to $97.05 a barrel. The dollar fell against the euro and the Japanese yen.

Among stocks making big moves:

”” ConAgra Foods rose $1.69, or 5.1 percent, to $35.04 after the company posted a quarterly profit that came in a penny above the forecasts of Wall Street analysts. The maker of Chef Boyardee, Hebrew National and other packaged foods benefited from acquisitions and price cuts that helped increase sales.

””Payroll processor Paychex fell $1.39, or 3.7 percent, to $36.60 after posting earnings that fell short of analysts' expectations. The company said profit for the three months through May 31 came in roughly flat at 34 cents per share. Analysts had expected earnings of 37 cents a share.

 

[bigdog]

Source: http://finance.yahoo.com

Given the wild trading of late, it was a calm close to the month.

After flitting between tiny gains and losses most of Friday, the stock market closed mostly lower, a peaceful end to the most volatile month in nearly two years.

"It's a dull Friday," said Gary Flam, a stock manager at Bel Air Investment Advisors. A bull market, he added, is "rarely a straight march up."

The Standard & Poor's 500 index ended its bumpy ride in June down 1.5 percent, the first monthly loss since October. The index still had its best first half of a year since 1998.

Investors seemed unsure how to react to recent statements by Federal Reserve officials about when the central bank might end its support for the economy. Mixed economic news Friday added to investor uncertainty after big stock gains.

On Friday, an index consumer confidence was up but a gauge of business activity in the Chicago area plunged.

"Investors don't know what to make of the news," said John Toohey, vice president of stock investments at USAA Investment Management. "I wouldn't be surprised to see more ups and downs."

The S&P 500 stock index closed down 6.92 points, or 0.4 percent, to 1,606.28. The Dow Jones industrial average fell 114.89 points, or 0.8 percent, to 14,909.60. The Nasdaq composite index rose 1.38 points, or 0.04 percent, to 3,403.25.

Stocks have jumped around in June. By contrast, the first five months of the year were mostly calm, marked by small but steady gains as investors bought on news of higher home prices, record corporate earnings and an improving jobs market.

By May 21, the S&P 500 had climbed to a record 1,669, up 18 percent for the year. Fed Chairman Ben Bernanke spoke the next day, and prices began gyrating.

Investors have long known that the central bank would eventually pull back from its bond purchases, which are designed to lower interest rates and get people to borrow and spend more. Last week, Bernanke got more specific about the timing. He said the Fed could start purchasing fewer bonds later this year, and stop buying them completely by the middle of next year, if the economy continued to strengthen.

Investors dumped stocks, but then had second thoughts this week as other Fed officials stressed that the central bank wouldn't pull back on its support soon. The Dow gained 365 points over the previous three days this week. The Dow has had 16 triple-digit moves for the month, the most since September 2011.

Bonds have also been on a bumpy ride in recent weeks, mostly down.

The NYSE DOW closed LOWER ▼ -114.89 points or ▼ -0.76% Friday, 28 June 2013
Symbol …........Last ......Change.....
Dow_Jones 14,909.60 ▼ -114.89 ▼ -0.76%
Nasdaq___ 3,403.25 ▲ 1.38 ▲ 0.04%
S&P_500__ 1,606.28 ▼ -6.92 ▼ -0.43%
30_Yr_Bond 3.500 ▼ -0.05 ▼ -1.38%

NYSE Volume 5,433,570,500
Nasdaq Volume 3,590,460,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,215.47 ▼ -27.93 ▼ -0.45%
DAX_____ 7,959.22 ▼ -31.53 ▼ -0.39%
CAC_40__ 3,738.91 ▼ -23.28 ▼ -0.62%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,775.40 ▼ -9.40 ▼ -0.20%
Shanghai_Comp 1,979.21 ▲ 29.19 ▲ 1.50%
Taiwan_Weight 8,062.21 ▲ 178.31 ▲ 2.26%
Nikkei_225____ 13,677.32 ▲ 463.77 ▲ 3.51%
Hang_Seng____ 20,803.29 ▲ 363.21 ▲ 1.78%
Strait_Times___ 3,150.44 ▲ 32.41 ▲ 1.04%
NZX_50_Index__ 4,440.17 ▲ 23.21 ▲ 0.53%

http://finance.yahoo.com/news/us-stocks-fall-quiet-end-205627315.html

US stocks fall in quiet end to a bumpy month

Stocks fall at end of volatile month but still up big for half-year; BlackBerry maker plunges

By Bernard Condon, AP Business Writer

Given the wild trading of late, it was a calm close to the month.

After flitting between tiny gains and losses most of Friday, the stock market closed mostly lower, a peaceful end to the most volatile month in nearly two years.

"It's a dull Friday," said Gary Flam, a stock manager at Bel Air Investment Advisors. A bull market, he added, is "rarely a straight march up."

The Standard & Poor's 500 index ended its bumpy ride in June down 1.5 percent, the first monthly loss since October. The index still had its best first half of a year since 1998.

Investors seemed unsure how to react to recent statements by Federal Reserve officials about when the central bank might end its support for the economy. Mixed economic news Friday added to investor uncertainty after big stock gains.

On Friday, an index consumer confidence was up but a gauge of business activity in the Chicago area plunged.

"Investors don't know what to make of the news," said John Toohey, vice president of stock investments at USAA Investment Management. "I wouldn't be surprised to see more ups and downs."

The S&P 500 stock index closed down 6.92 points, or 0.4 percent, to 1,606.28. The Dow Jones industrial average fell 114.89 points, or 0.8 percent, to 14,909.60. The Nasdaq composite index rose 1.38 points, or 0.04 percent, to 3,403.25.

Stocks have jumped around in June. By contrast, the first five months of the year were mostly calm, marked by small but steady gains as investors bought on news of higher home prices, record corporate earnings and an improving jobs market.

By May 21, the S&P 500 had climbed to a record 1,669, up 18 percent for the year. Fed Chairman Ben Bernanke spoke the next day, and prices began gyrating.

Investors have long known that the central bank would eventually pull back from its bond purchases, which are designed to lower interest rates and get people to borrow and spend more. Last week, Bernanke got more specific about the timing. He said the Fed could start purchasing fewer bonds later this year, and stop buying them completely by the middle of next year, if the economy continued to strengthen.

Investors dumped stocks, but then had second thoughts this week as other Fed officials stressed that the central bank wouldn't pull back on its support soon. The Dow gained 365 points over the previous three days this week. The Dow has had 16 triple-digit moves for the month, the most since September 2011.

Bonds have also been on a bumpy ride in recent weeks, mostly down.

The prospect of fewer purchases by the Fed sent investors fleeing from all sorts of bonds ”” municipals, U.S. Treasury securities, corporate bonds, foreign government debt and high-yield bonds. Investors pulled a record $23 billion from bond mutual funds in the five trading days ended Wednesday, according to Bank of America Merrill Lynch.

Bond yields, which move in the opposite direction of bond prices, have rocketed.

The yield on the 10-year Treasury note rose to 2.49 percent from 2.47 percent late Thursday. Last month, the yield was as low as 1.63 percent. Treasury yields help set borrowing costs for a large range of consumer and business loans.

It's been a rocky month in foreign markets, too. Major indexes in France, Germany and Britain have lost about 5 percent in June.

In U.S. economic news Friday, the University of Michigan said its index of consumer sentiment dipped to 84.1 in June from 84.5 the previous month. But that was still relatively high. May's reading was the highest since July 2007.

Meanwhile, the Chicago Business Barometer sank to 51.6 from a 14-month high of 58.7 in May. That was well below the level of 55 that economists polled by FactSet were expecting.

Bill Strazzullo, chief strategist of Bell Curve Trading, is worried stock investors will sell on any signs the Fed is slowing down its economic stimulus program.

"This rally is still very much being supported by monetary easing by central banks," he said. He added, referring to Friday's quiet trading: "It's the calm before the storm."

Eight of the 10 industry groups in the S&P 500 were down for the day, led by health care companies. They fell 0.9 percent.

In commodities trading, gold gained $12.10 to $1,223.70 an ounce. The price of crude oil fell 49 cents to $96.56 a barrel. The dollar rose against the euro and the Japanese yen.

Among stocks making big moves:

”” BlackBerry maker Research In Motion plunged $4.02, or 28 percent, to $10.46 after the company posted a surprise loss in the first quarter and warned of future losses despite releasing its new line of smartphones this year. The company also discontinued making new versions of its slow-selling tablet device, The Playbook.

”” Accenture fell $8.26, or 10 percent, to $71.96. The consulting firm cut its revenue and profit outlook for its fiscal year ending in August. Revenue was hurt by lower demand in Europe as well as its communications, media and technology division.

”” Hospira rose $2.16, or 6 percent, to $38.31. The drug company said it had received a positive opinion from a European drug regulator for a drug to treat rheumatoid arthritis, among other illnesses. A final decision could come three months.

5087

 

[bigdog]

Source: http://finance.yahoo.com

Investors have stopped worrying about the Federal Reserve. At least for now.

Stocks rose on Wall Street Monday as investors judged that the economy still isn't growing fast enough for the central bank to cut back on its stimulus program.

U.S. manufacturing grew modestly in June after a pickup in new orders and stronger production, according to a private survey. The Institute for Supply Management said its factory index increased to 50.9 in June from 49 in the previous month.

The Standard & Poor's 500 index logged its first monthly decline since October last month after investors were unsettled by comments from Federal Reserve Chairman Ben Bernanke. Bernanke said last month that the Fed could ease back on its stimulus later this year and end it next year, providing the economy continues to recover.

"The market has ... stepped back from the knee-jerk reaction that the Fed news provided," said Jim Russell, a regional investment director at US Bank. "The manufacturing ISM number came in strong enough ”” not too hot, not too cold."

If the manufacturing report had been stronger, Russell said, stocks might have fallen as investors speculated that the Fed would be inclined to ease back on its stimulus sooner.

A separate report on construction spending added to the picture of a gradually improving economy. Construction spending rose 0.5 percent in May compared with April, when spending was up 0.1 percent.

The Dow Jones industrial average gained 65.36 points, or 0.4 percent, to 14,974. The Dow gained as much as 173 points in during morning trading before drifting lower throughout the afternoon.

The S&P 500 index rose 8.68 points, or 0.54 percent, to 1,614. The Nasdaq composite rose 31.24 points, or 0.9 percent, to 3,434.

The Fed is currently buying $85 billion of bonds a month to keep interest rates low and encourage borrowing and spending. That stimulus has been a major factor supporting a rally in stocks this year and the threat of it being withdrawn made stock markets more volatile last month.

The S&P 500 closed at a record high of 1,669 on May 21. A day later, stocks began dropping after minutes of a Fed meeting were released suggesting the stimulus could be scaled back. The sell-off picked up pace June 19, when Bernanke laid out a possible road map for ending the bond purchases.

The S&P closed at 1,573 on June 24, almost 6 percent down from its record, before regaining some of its loss. The index is still up 13.2 percent this year.

The market is more than twice as likely to gain as decline on the first trading day of a new quarter, according to data from S&P Dow Jones Indices. The index has risen 27 times and fallen 13 times during the past 10 years on the first trading day of the quarter.

The NYSE DOW closed HIGHER ▲ 65.36 points or ▲ 0.44% Monday, 1 July 2013
Symbol …........Last ......Change.....
Dow_Jones 14,974.96 ▲ 65.36 ▲ 0.44%
Nasdaq___ 3,434.49 ▲ 31.24 ▲ 0.92%
S&P_500__ 1,614.96 ▲ 8.68 ▲ 0.54%
30_Yr_Bond 3.490 ▼ -0.01 ▼ -0.26%

NYSE Volume 3,525,776,750
Nasdaq Volume 1,572,239,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,307.78 ▲ 64.38 ▲ 1.03%
DAX_____ 7,983.92 ▲ 24.70 ▲ 0.31%
CAC_40__ 3,767.48 ▲ 28.57 ▲ 0.76%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,689.70 ▼ -85.70 ▼ -1.79%
Shanghai_Comp 1,995.24 ▲ 16.04 ▲ 0.81%
Taiwan_Weight 8,036.00 ▼ -26.21 ▼ -0.33%
Nikkei_225____ 13,852.50 ▲ 175.18 ▲ 1.28%
Hang_Seng____ 20,803.29 ▲ 363.21 ▲ 1.78%
Strait_Times___ 3,140.93 ▼ -9.51 ▼ -0.30%
NZX_50_Index__ 4,418.05 ▼ -22.12 ▼ -0.50%

http://finance.yahoo.com/news/us-stocks-advance-stimulus-concerns-144725940.html

US stocks advance as stimulus concerns fade

Stocks advance on Wall Street as concerns ease of a sudden reduction in Fed stimulus

By Steve Rothwell, AP Markets Writer

Investors have stopped worrying about the Federal Reserve. At least for now.

Stocks rose on Wall Street Monday as investors judged that the economy still isn't growing fast enough for the central bank to cut back on its stimulus program.

U.S. manufacturing grew modestly in June after a pickup in new orders and stronger production, according to a private survey. The Institute for Supply Management said its factory index increased to 50.9 in June from 49 in the previous month.

The Standard & Poor's 500 index logged its first monthly decline since October last month after investors were unsettled by comments from Federal Reserve Chairman Ben Bernanke. Bernanke said last month that the Fed could ease back on its stimulus later this year and end it next year, providing the economy continues to recover.

"The market has ... stepped back from the knee-jerk reaction that the Fed news provided," said Jim Russell, a regional investment director at US Bank. "The manufacturing ISM number came in strong enough ”” not too hot, not too cold."

If the manufacturing report had been stronger, Russell said, stocks might have fallen as investors speculated that the Fed would be inclined to ease back on its stimulus sooner.

A separate report on construction spending added to the picture of a gradually improving economy. Construction spending rose 0.5 percent in May compared with April, when spending was up 0.1 percent.

The Dow Jones industrial average gained 65.36 points, or 0.4 percent, to 14,974. The Dow gained as much as 173 points in during morning trading before drifting lower throughout the afternoon.

The S&P 500 index rose 8.68 points, or 0.54 percent, to 1,614. The Nasdaq composite rose 31.24 points, or 0.9 percent, to 3,434.

The Fed is currently buying $85 billion of bonds a month to keep interest rates low and encourage borrowing and spending. That stimulus has been a major factor supporting a rally in stocks this year and the threat of it being withdrawn made stock markets more volatile last month.

The S&P 500 closed at a record high of 1,669 on May 21. A day later, stocks began dropping after minutes of a Fed meeting were released suggesting the stimulus could be scaled back. The sell-off picked up pace June 19, when Bernanke laid out a possible road map for ending the bond purchases.

The S&P closed at 1,573 on June 24, almost 6 percent down from its record, before regaining some of its loss. The index is still up 13.2 percent this year.

The market is more than twice as likely to gain as decline on the first trading day of a new quarter, according to data from S&P Dow Jones Indices. The index has risen 27 times and fallen 13 times during the past 10 years on the first trading day of the quarter.

"You're seeing new money come in to the markets as we are in a new quarter," said Quincy Krosby, a market strategist at Prudential Financial. "New money is being put to work."

Eight of the 10 industry groups that make up the S&P 500 index rose, led by materials companies, a category that includes miners and chemical makers, and industrial companies. Utilities and phone companies were the only ones to decline.

This week's most closely watched economic release will be the government's monthly employment report Friday. Economists expect the U.S. added 165,000 jobs in June, a figure that would affirm the economy's steady, but slow, trajectory, said Scott Wren, a senior equity strategist at Wells Fargo Advisors.

"It's a confirmation of more of the same," said Wren. "More modest growth, more modest inflation, but not a big acceleration."

U.S. stocks also followed global markets higher. Japan's Nikkei 225 rose 1.3 percent, boosted by signs of improvement in Japan's economy.

In Europe, stock indexes rose after a mixed set of economic indicators for the region. While unemployment in the 17 countries that use the euro rose to another record high in May, manufacturing picked up in Britain, France and Italy and stabilized in Spain.

Germany's DAX index rose 0.3 percent and Britain's FTSE 100 index climbed 1.5 percent.

The yield on the 10-year Treasury note was unchanged from Friday at 2.49 percent. The note's yield surged to 2.66 percent last Monday as investors worried that the Fed was poised to reduce on its bond purchases. The yield on the 10-year Treasury note is used to set interest rates on many kinds of loans including home mortgages.

In commodities trading, the price of oil climbed $1.43, or 1.5 percent, to $97.99 a barrel. The price of oil rose on concerns that unrest in Egypt, the largest Arab nation, could spread and affect the transport of oil supplies in the Middle East and Africa.

Gold rose $32, or 2.6 percent, to $1,255.70 an ounce.

Trading will be curtailed this week due to the Independence Day holiday Thursday. The New York Stock Exchange will close at 1 p.m. on Wednesday and reopen on Friday.

The dollar edged lower against the euro and rose against the Japanese yen.

Among stocks making big moves:

”” Onyx Pharmaceuticals surged $44.51, or 51 percent, to $131.33 after the company rejected a takeover bid from Amgen, a larger biotechnology company. Onyx said other companies have expressed interest in a buyout.

”” Cablevision rose $1.62, or 9.6 percent, to $18.44 after Reuters reported that Time Warner Cable is considering making a bid for the company.

”” Best Buy rose $2.41, or 8.8 percent, to $29.74 after Credit Suisse resumed its coverage of the stock with an "outperform" rating and a target price of $42. Analysts at the investment bank believe that the company's new approach to serving customers will help it increase its earnings.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market will close at 1 p.m. on Wednesday, ahead of the Independence Day holiday on Thursday. The market re-opens Friday.

The stock market ended slightly lower Tuesday after reports of intensifying political turmoil in Egypt offset good news about the U.S. economy.

Stocks rose most of the day on positive news about car sales, home prices and manufacturing. But major indexes turned lower after 1:40 p.m. Eastern Daylight Time after news emerged that Egypt's military had drawn up plans to suspend the country's constitution, dissolve its legislature and set up an interim government. Millions of protesters are demanding the ouster of President Mohammed Morsi.

The price of oil climbed close to $100 a barrel on concern that the crisis in the largest Arab nation could disrupt the flow of crude from the region.

"It's more or less Egypt unrest," said Sal Arnuk, co-founder of Themis Trading, a brokerage firm that specializes in stocks. "These very large protests are being televised and broadcast ”” that's spooking people."

The Standard & Poor's 500 index had climbed as much as 9 points shortly before midday. It then fell as much as 8 points before closing down 0.88 point, or 0.1 percent, at 1,614.08

The Dow Jones industrial average fell 42.55 points, or 0.3 percent, to 14,932.41 The Nasdaq composite slipped 1.09 points, a fraction of a percentage point, at 3,433.40

Trading activity was lighter than normal, influenced by the upcoming July 4 holiday. The stock market will close at 1 p.m. on Wednesday, ahead of the Independence Day holiday on Thursday. The market re-opens Friday.

Crude oil jumped about $1 a barrel after news emerged of the worsening political situation in Egypt. Oil closed up $1.61 at $99.60 a barrel in New York. It last crossed $100 on Sept. 14 of last year.

The market's early gains were driven by a number of strong economic reports.

U.S. auto sales reached 7.8 million in the six months to June, the highest first-half total since 2007. That helped lift Ford's stock 44 cents, or 2.8 percent, to $16.18.

U.S. factory orders rose in May, helped by a third straight month of stronger business investment.

Also, U.S. home prices jumped 12.2 percent in May from a year earlier, the most in seven years, according to real estate data provider CoreLogic. The increase suggests the housing recovery is strengthening.

When trading resumes Friday, investors will turn their attention to a key gauge of the economy ”” the government's monthly employment report.

The NYSE DOW closed LOWER ▼ -42.55 points or ▼ -0.28% Tuesday, 2 July 2013
Symbol …........Last ......Change.....
Dow_Jones 14,932.41 ▼ -42.55 ▼ -0.28%
Nasdaq___ 3,433.40 ▼ -1.09 ▼ -0.03%
S&P_500__ 1,614.08 ▼ -0.88 ▼ -0.05%
30_Yr_Bond 3.470 ▼ -0.02 ▼ -0.57%

NYSE Volume 3,685,526,750
Nasdaq Volume 1,705,150,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,303.94 ▼ -3.84 ▼ -0.06%
DAX_____ 7,910.77 ▼ -73.15 ▼ -0.92%
CAC_40__ 3,742.57 ▼ -24.91 ▼ -0.66%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,810.30 ▲ 120.60 ▲ 2.57%
Shanghai_Comp 2,006.56 ▲ 11.32 ▲ 0.57%
Taiwan_Weight 8,015.86 ▼ -20.14 ▼ -0.25%
Nikkei_225____ 14,098.74 ▲ 246.24 ▲ 1.78%
Hang_Seng____ 20,658.65 ▼ -144.64 ▼ -0.70%
Strait_Times___ 3,171.47 ▲ 30.54 ▲ 0.97%
NZX_50_Index__ 4,458.25 ▲ 40.20 ▲ 0.91%

http://finance.yahoo.com/news/us-stocks-turn-lower-egypt-194502648.html

US stocks turn lower after Egypt turmoil worsens

US stocks turn slightly lower after political turmoil worsens in Egypt; Oil prices rise

By Steve Rothwell, AP Markets Writer

The stock market ended slightly lower Tuesday after reports of intensifying political turmoil in Egypt offset good news about the U.S. economy.

Stocks rose most of the day on positive news about car sales, home prices and manufacturing. But major indexes turned lower after 1:40 p.m. Eastern Daylight Time after news emerged that Egypt's military had drawn up plans to suspend the country's constitution, dissolve its legislature and set up an interim government. Millions of protesters are demanding the ouster of President Mohammed Morsi.

The price of oil climbed close to $100 a barrel on concern that the crisis in the largest Arab nation could disrupt the flow of crude from the region.

"It's more or less Egypt unrest," said Sal Arnuk, co-founder of Themis Trading, a brokerage firm that specializes in stocks. "These very large protests are being televised and broadcast ”” that's spooking people."

The Standard & Poor's 500 index had climbed as much as 9 points shortly before midday. It then fell as much as 8 points before closing down 0.88 point, or 0.1 percent, at 1,614.08

The Dow Jones industrial average fell 42.55 points, or 0.3 percent, to 14,932.41 The Nasdaq composite slipped 1.09 points, a fraction of a percentage point, at 3,433.40

Trading activity was lighter than normal, influenced by the upcoming July 4 holiday. The stock market will close at 1 p.m. on Wednesday, ahead of the Independence Day holiday on Thursday. The market re-opens Friday.

Crude oil jumped about $1 a barrel after news emerged of the worsening political situation in Egypt. Oil closed up $1.61 at $99.60 a barrel in New York. It last crossed $100 on Sept. 14 of last year.

The market's early gains were driven by a number of strong economic reports.

U.S. auto sales reached 7.8 million in the six months to June, the highest first-half total since 2007. That helped lift Ford's stock 44 cents, or 2.8 percent, to $16.18.

U.S. factory orders rose in May, helped by a third straight month of stronger business investment.

Also, U.S. home prices jumped 12.2 percent in May from a year earlier, the most in seven years, according to real estate data provider CoreLogic. The increase suggests the housing recovery is strengthening.

When trading resumes Friday, investors will turn their attention to a key gauge of the economy ”” the government's monthly employment report.

Economists forecast that the U.S. economy added 165,000 jobs in June, according to data compiled by FactSet. The Dow surged 200 points June 7 after the Labor Department said that U.S. employers added 175,000 jobs in May. The Federal Reserve has said the jobs market will be critical in determining when it ends its bond buying, which has kept interest rates low and driven a surge in stocks this year.

Investors and traders are also starting to think about corporate earnings, which begin in earnest next week. While corporate profits have reached record levels, most of the gains have come from cutting costs rather than increasing sales.

"We're in the middle of a transition," said Chris Wolfe, chief investment officer at Merrill Lynch Private Banking and Investment Group. "You would expect to see, over the balance of this year and going into next year, somewhat stronger macroeconomic data that translates directly into stronger corporate revenue growth."

Alcoa, the first company in the Dow to report earnings, will release its second-quarter results after the market closes July 8.

In government bond trading, the yield on the 10-year Treasury note was unchanged at 2.48 percent.

In other trading, the price of gold fell $12.30, or 1 percent, to close at $1,243.40 an ounce.

Among stocks making big moves:

”” Zynga jumped 20 cents, or 6.5 percent, to $3.27 after the troubled maker of "FarmVille" and other online games said CEO Mark Pincus would step aside. The company's stock is down almost 70 percent since its 2011 initial public offering at $10 per share.

”” Achillion Pharmaceuticals fell $2.10, or 25.1 percent, to $6.26 after the drug developer said regulators Monday placed a hold on an early-stage study involving its potential hepatitis C treatment.

”” DaVita HealthCare Partners fell $7.15, or 5.9 percent, to $114, after the government proposed cutting the rates of Medicare payments to dialysis service providers.

 

[bigdog]

Source: http://finance.yahoo.com

Encouraging news about the U.S. jobs market trumped higher oil prices and worrying developments in Europe's debt crisis on Wednesday.

Oil climbed above $102 a barrel for the first time in more than a year as the political turmoil in Egypt intensified, raising the risk of supply disruptions in the Suez Canal. In Europe, traders dumped Portuguese stocks and bonds as the country's government teetered on the edge of collapse.

That news was offset though by a brighter outlook on U.S. jobs ahead of Friday's monthly employment report. The stock market opened lower, then drifted higher in late morning trading. By noon, indexes turned positive.

"The key takeaway is that jobs matter more than Egypt," said Alec Young, a global equity strategist at S&P Capital IQ. "Nothing is more important to the state of the economy than the jobs market."

In the U.S., fewer people sought unemployment benefits last week and ADP, a payrolls processor, said businesses added more jobs last month than analysts had expected. The government's broader monthly survey of U.S. employment is scheduled to be released Friday morning. Economists predict that employers added 165,000 jobs in June.

The Dow Jones industrial average closed up 56.14 points, or 0.4 percent, to close at 14,988.55.

The Standard & Poor's 500 rose 1.33 points, or 0.1 percent, to 1,615.41. The Nasdaq composite gained 10.27 points, or 0.3 percent, to 3,443.67.

Trading closed at 1 p.m. Eastern Daylight Time ahead of the July 4th holiday Thursday. Regular trading will resume Friday.

Investors will be watching the government's jobs report closely in hopes of figuring out what the Federal Reserve will do next.

The NYSE DOW closed HIGHER ▲ 56.14 points or ▲ 0.38% Wednesday, 3 July 2013
Symbol …........Last ......Change.....
Dow_Jones 14,988.55 ▲ 56.14 ▲ 0.38%
Nasdaq___ 3,443.67 ▲ 10.27 ▲ 0.30%
S&P_500__ 1,615.41 ▲ 1.33 ▲ 0.08%
30_Yr_Bond 3.500 ▲ 0.03 ▲ 0.81%

NYSE Volume 2,174,899,000
Nasdaq Volume 914,058,310

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,229.87 ▼ -74.07 ▼ -1.17%
DAX_____ 7,829.32 ▼ -81.45 ▼ -1.03%
CAC_40__ 3,702.01 ▼ -40.56 ▼ -1.08%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,727.80 ▼ -82.50 ▼ -1.72%
Shanghai_Comp 1,994.27 ▼ -12.29 ▼ -0.61%
Taiwan_Weight 7,911.42 ▼ -104.44 ▼ -1.30%
Nikkei_225____ 14,055.56 ▼ -43.18 ▼ -0.31%
Hang_Seng____ 20,147.31 ▼ -511.34 ▼ -2.48%
Strait_Times___ 3,130.61 ▼ -42.71 ▼ -1.35%
NZX_50_Index__ 4,450.76 ▼ -7.50 ▼ -0.17%

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

Stocks gain after encouraging US hiring news

Stocks end higher as encouraging news about US job market offsets crises in Portugal, Egypt

By Steve Rothwell, AP Markets Writer

Encouraging news about the U.S. jobs market trumped higher oil prices and worrying developments in Europe's debt crisis on Wednesday.

Oil climbed above $102 a barrel for the first time in more than a year as the political turmoil in Egypt intensified, raising the risk of supply disruptions in the Suez Canal. In Europe, traders dumped Portuguese stocks and bonds as the country's government teetered on the edge of collapse.

That news was offset though by a brighter outlook on U.S. jobs ahead of Friday's monthly employment report. The stock market opened lower, then drifted higher in late morning trading. By noon, indexes turned positive.

"The key takeaway is that jobs matter more than Egypt," said Alec Young, a global equity strategist at S&P Capital IQ. "Nothing is more important to the state of the economy than the jobs market."

In the U.S., fewer people sought unemployment benefits last week and ADP, a payrolls processor, said businesses added more jobs last month than analysts had expected. The government's broader monthly survey of U.S. employment is scheduled to be released Friday morning. Economists predict that employers added 165,000 jobs in June.

The Dow Jones industrial average closed up 56.14 points, or 0.4 percent, to close at 14,988.55.

The Standard & Poor's 500 rose 1.33 points, or 0.1 percent, to 1,615.41. The Nasdaq composite gained 10.27 points, or 0.3 percent, to 3,443.67.

Trading closed at 1 p.m. Eastern Daylight Time ahead of the July 4th holiday Thursday. Regular trading will resume Friday.

Investors will be watching the government's jobs report closely in hopes of figuring out what the Federal Reserve will do next.

Fed chairman Ben Bernanke said June 19 that the central bank was considering easing back on its stimulus program later this year if the economy strengthens enough. The central bank is buying $85 billion in bonds every month to keep interest rates low and encourage spending.

The Fed may be forced to keep stimulating the economy because U.S. growth remains muted, said Derek Gabrielsen, a wealth advisor, at Strategic Wealth Partners. That will provide a boost to stocks.

"The schedule that (Bernanke) laid out is not going to be realized as quickly as he said," Gabrielsen said. "I don't think the economy can handle it."

Payroll processing firm ADP said that U.S. employers added 188,000 jobs in June, more than the 155,000 forecast by economists. Also, the government's weekly report on unemployment claims provided more evidence that layoffs remain low and job gains steady. The number of Americans seeking unemployment benefits fell 5,000 to 343,000.

In U.S. government bond trading, the yield on the 10-year Treasury note was unchanged at 2.48 percent from Tuesday.

In Europe, stock markets slumped after the yield on Portugal's benchmark 10-year bond surged almost a percentage point to 7.31 percent. Investors are worried about the future of the bailed-out country and its efforts to get a handle on its debt after two Cabinet members quit.

Germany's DAX index fell 1 percent to 7,829 and the U.K.'s FTSE 100 fell 1.2 percent to 6,229.

The price of oil climbed $1.43, or 1.5 percent, to $101.03. Oil has climbed almost 8 percent since Monday last week. The price of gold rose $8.50, or 0.7 percent, to close at $1,251.90.

Among stocks making big moves:

”” Alcoa fell 9 cents, or 1.2 percent, to $7.71 after the Citigroup analyst Brian Yu reduced his second-quarter and full-year profit predictions for the aluminum producer, citing low prices for the metal.

”” AutoNation gained 71 cents, or 1.6 percent, to $45.27 after Credit Suisse raised its rating on the stock to "outperform" from "neutral," citing a positive outlook for the company's parts and servicing business.

”” Mead Johnson fell $6.05, or 8.1 percent, to $68.85 adding to a 5.7 percent slump Tuesday. The Chinese government is investigating the nutritional products maker for possibly violating anti-monopoly laws in its pricing of infant formula, Bloomberg News reported yesterday.

 

[bigdog]

Source: http://finance.yahoo.com

World stocks shrugged off worries over political turmoil in Egypt and rallied strongly Thursday on optimism that easy monetary policy from central banks in Europe is set to continue for some time to come. U.S. markets were closed for Independence Day.

The biggest gains were in Britain, where the Bank of England surprised markets after its first monetary policy meeting held under new governor Mark Carney. It said afterward that expectations it would raise rates in coming months were unwarranted, despite the improving economic backdrop.

Meanwhile, the European Central Bank kept rates at record low rates in light of the eurozone's ongoing recession, with President Mario Draghi for the first time saying they will remain there "for an exended period of time."

Stocks surged after each statement.

Britain's FTSE 100 index jumped 3.1 percent to close at 6,421.67 while Germany's DAX rose 2.1 percent to 7,994.31. France's CAC 40 gained 2.9 percent to 3,809.31.

The central bank statements contributed to strong declines in the euro and British pound against the dollar. Looser monetary policies tend to weaken a currency as low interest rates mean lower returns on investments and more attractive opportunities can be found elsewhere. The euro fell 0.7 percent to $1.2916, while the British pound fell 1.4 percent to $1.5066.

Financial shares were among the strongest gainers, with Royal Bank of Scotland PLC stock rising 5.1 percent, Barclays PLC up 4.7 percent and HSBC PLC up 4.6 percent.

"Global markets stormed ahead today as...Draghi confirmed that interest rates will be kept at current record lows or even further lowered in order to inject more liquidity into struggling eurozone nations," said Spreadex trader Shavaz Dhalla in a note on markets.

However, "there is still the concern that volumes are thin today owing to the U.S market being closed."

Earlier in Asia, Hong Kong's Hang Seng index was the strongest gainer, rising 1.6 percent to 20,468.67. China's Shanghai Composite rose 0.6 percent to 2,006.10.

Tokyo's Nikkei 225 bucked the trend, slipping 0.3 percent to 14,018.93, despite remarks from Bank of Japan Governor Haruhiko Kuroda that the country's economy is headed for recovery.

U.S. markets were closed for Independence Day July 4; The NYSE DOW closed HIGHER ▲ 56.14 points or ▲ 0.38% Thursday, 4 July 2013
Symbol …........Last ......Change.....
Dow_Jones 14,988.55 ▲ 56.14 ▲ 0.38%
Nasdaq___ 3,443.67 ▲ 10.27 ▲ 0.30%
S&P_500__ 1,615.41 ▲ 1.33 ▲ 0.08%
30_Yr_Bond 3.500 ▲ 0.03 ▲ 0.81%

NYSE Volume 2,174,899,000
Nasdaq Volume 914,058,310

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,421.67 ▲ 191.80 ▲ 3.08%
DAX_____ 7,994.31 ▲ 164.99 ▲ 2.11%
CAC_40__ 3,809.31 ▲ 107.30 ▲ 2.90%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,781.00 ▲ 53.20 ▲ 1.13%
Shanghai_Comp 2,006.10 ▲ 11.83 ▲ 0.59%
Taiwan_Weight 7,893.72 ▼ -17.70 ▼ -0.22%
Nikkei_225____ 14,018.93 ▼ -36.63 ▼ -0.26%
Hang_Seng____ 20,468.67 ▲ 321.36 ▲ 1.60%
Strait_Times___ 3,148.94 ▲ 19.45 ▲ 0.62%
NZX_50_Index__ 4,458.95 ▲ 8.20 ▲ 0.18%

http://finance.yahoo.com/news/stocks-rally-european-central-banks-134020659.html

Stocks rally on European central banks' comments

With US markets closed, stocks rally after eurozone, UK central banks say rates to stay low

By Toby Sterling, AP Business Writer

World stocks shrugged off worries over political turmoil in Egypt and rallied strongly Thursday on optimism that easy monetary policy from central banks in Europe is set to continue for some time to come. U.S. markets were closed for Independence Day.

The biggest gains were in Britain, where the Bank of England surprised markets after its first monetary policy meeting held under new governor Mark Carney. It said afterward that expectations it would raise rates in coming months were unwarranted, despite the improving economic backdrop.

Meanwhile, the European Central Bank kept rates at record low rates in light of the eurozone's ongoing recession, with President Mario Draghi for the first time saying they will remain there "for an exended period of time."

Stocks surged after each statement.

Britain's FTSE 100 index jumped 3.1 percent to close at 6,421.67 while Germany's DAX rose 2.1 percent to 7,994.31. France's CAC 40 gained 2.9 percent to 3,809.31.

The central bank statements contributed to strong declines in the euro and British pound against the dollar. Looser monetary policies tend to weaken a currency as low interest rates mean lower returns on investments and more attractive opportunities can be found elsewhere. The euro fell 0.7 percent to $1.2916, while the British pound fell 1.4 percent to $1.5066.

Financial shares were among the strongest gainers, with Royal Bank of Scotland PLC stock rising 5.1 percent, Barclays PLC up 4.7 percent and HSBC PLC up 4.6 percent.

"Global markets stormed ahead today as...Draghi confirmed that interest rates will be kept at current record lows or even further lowered in order to inject more liquidity into struggling eurozone nations," said Spreadex trader Shavaz Dhalla in a note on markets.

However, "there is still the concern that volumes are thin today owing to the U.S market being closed."

Earlier in Asia, Hong Kong's Hang Seng index was the strongest gainer, rising 1.6 percent to 20,468.67. China's Shanghai Composite rose 0.6 percent to 2,006.10.

Tokyo's Nikkei 225 bucked the trend, slipping 0.3 percent to 14,018.93, despite remarks from Bank of Japan Governor Haruhiko Kuroda that the country's economy is headed for recovery.

The dollar gained fractionally against the yen, just passing the 100 yen mark to 100.01 yen.

Mike McCudden, head of derivatives at Interactive Investor, noted that while physical exchanges are closed in the U.S., futures are still trading, and they indicate Wednesday's rally on the back of favorable jobs and unemployment data has continued, with Dow Jones Industrial Index futures now trading above 15,000. The index closed at 14,988.50 Wednesday.

"Whether this can be sustained will clearly be reflected by what's happening on a global basis," he said in a note on markets. "The situation in Egypt remains hugely sensitive, whilst resurgent eurozone woes could knock sentiment."

Investors around the world were also keeping a close watch on the oil price, which has passed $100 per barrel due to Wednesday's events in the Middle East: Egypt's military overthrew Mohammed Morsi, the country's first democratically elected president, after he defied calls to resign despite the demands of millions of protesters.

Egypt is not an oil producer but its control of the Suez canal ”” one of the world's busiest shipping lanes, which links the Mediterranean with the Red Sea ”” gives it a crucial role in maintaining global energy supplies. High energy costs act as a drag on economic growth, but oil has eased somewhat from its Wednesday highs and was down 25 cents to $100.99.

The Bank of England and ECB statements also led to lower government bond yields in Southern Europe, where fears have been brewing that a crisis in Portugal's governing coalition could bring Europe's debt crisis back to a boil.

"These actions should help limit increases in bond yields in the U.K. and Europe, even as Treasury yields grind higher amid Fed tapering speculation," said BMO Economist Benjamin Reitzes.

Over the past few weeks, markets have sputtered amid speculation that the U.S. Federal Reserve might taper off its policy of buying $85 billion in bonds every month to keep interest rates low and encourage spending.

But on Wednesday, unemployment and jobs data out of the U.S. were just right for stocks, analysts said: good enough to restore confidence that the U.S. economic recovery is continuing, but not so good that the Fed is likely to pull back on stimulus.

"We have had a period of extreme volatility, and now we have some settling going on," said Lorraine Tan, director at Standard & Poor's equity research in Singapore. "I think there's a realization that the (negative) reaction may have been overdone."

 

[bigdog]

Source: http://finance.yahoo.com

A see-saw start for stocks ended with a rally Friday, as traders decided that a healthy job market mattered more than the Federal Reserve scaling back its economic stimulus.

After the government reported strong hiring for June, traders and investors struggled over how to react. At first, they pushed stocks higher because the report was better than expected. Then they pushed stocks lower because improved hiring made it more likely the Federal Reserve would ease back on its economic stimulus.

After waffling early, investors and finally settled on an optimistic outlook.

"In general, I think our economy is standing on its own two feet right now," said David Brown, chief market strategist at Sabrient, a Santa Barbara, Calif., research firm for institutional investors.

U.S. stock indexes shot higher when the market opened, fueled by the Labor Department's report that the U.S. economy added a stronger-than-expected 195,000 jobs last month. The Dow Jones industrial average jumped as much as 115 points.

But the gains tapered off within the hour, and all the major indexes dipped briefly into the red.

By the end of the day, the three main U.S. indexes had more than recovered, each ending about 1 percent higher.

The Dow Jones industrial average rose 147.29 points to 15,135.84. The Standard & Poor's 500 rose 16.48 points to 1,631.89. The Nasdaq composite climbed 35.71 to 3,479.38.

"I think the initial reaction was, 'Yay, all these people are employed, and then, 'whoops,'" Brown said, during late-morning trading.

The whiplash day illustrated the complex and outsized role that the Fed has played in the stock market in recent weeks.

The Federal Reserve, led by Chairman Ben Bernanke, has been propping up the economy by buying bonds and keeping interest rates low. Investors know that the Fed isn't going to continue the stimulus forever, but they worry that developments like Friday's positive jobs report could make the Fed yank away the stimulus too soon.

The jobs picture "gives Bernanke more of a mandate" to rein in Fed stimulus programs, Brown said.

As investors bought stocks, they sold bonds, another sign that they think the Fed will tamp down its bond buying. The yield on the 10-year Treasury note jumped dramatically to 2.73 percent from late Wednesday's level of 2.51 percent. That was the highest yield for the 10-year note since August 2011.

The NYSE DOW closed HIGHER ▲ 147.29 points or ▲ 0.98% Friday, 5 July 2013
Symbol …........Last ......Change.....
Dow_Jones 15,135.84 ▲ 147.29 ▲ 0.98%
Nasdaq___ 3,479.38 ▲ 35.71 ▲ 1.04%
S&P_500__ 1,631.89 ▲ 16.48 ▲ 1.02%
30_Yr_Bond 3.680 ▲ 0.18 ▲ 5.15%

NYSE Volume 2,960,383,000
Nasdaq Volume 1,220,660,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,375.52 ▼ -46.15 ▼ -0.72%
DAX_____ 7,806.00 ▼ -188.31 ▼ -2.36%
CAC_40__ 3,753.85 ▼ -55.46 ▼ -1.46%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,826.40 ▲ 45.40 ▲ 0.95%
Shanghai_Comp 2,007.20 ▲ 1.10 ▲ 0.05%
Taiwan_Weight 8,001.82 ▲ 108.10 ▲ 1.37%
Nikkei_225____ 14,309.97 ▲ 291.04 ▲ 2.08%
Hang_Seng____ 20,854.67 ▲ 386.00 ▲ 1.89%
Strait_Times___ 3,169.73 ▲ 22.61 ▲ 0.72%
NZX_50_Index__ 4,489.86 ▲ 30.91 ▲ 0.69%

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

Stocks end with strong gains after jobs report

US stocks end with a surge as encouraging jobs report outweighs Fed worries

By Christina Rexrode, AP Business Writer

A see-saw start for stocks ended with a rally Friday, as traders decided that a healthy job market mattered more than the Federal Reserve scaling back its economic stimulus.

After the government reported strong hiring for June, traders and investors struggled over how to react. At first, they pushed stocks higher because the report was better than expected. Then they pushed stocks lower because improved hiring made it more likely the Federal Reserve would ease back on its economic stimulus.

After waffling early, investors and finally settled on an optimistic outlook.

"In general, I think our economy is standing on its own two feet right now," said David Brown, chief market strategist at Sabrient, a Santa Barbara, Calif., research firm for institutional investors.

U.S. stock indexes shot higher when the market opened, fueled by the Labor Department's report that the U.S. economy added a stronger-than-expected 195,000 jobs last month. The Dow Jones industrial average jumped as much as 115 points.

But the gains tapered off within the hour, and all the major indexes dipped briefly into the red.

By the end of the day, the three main U.S. indexes had more than recovered, each ending about 1 percent higher.

The Dow Jones industrial average rose 147.29 points to 15,135.84. The Standard & Poor's 500 rose 16.48 points to 1,631.89. The Nasdaq composite climbed 35.71 to 3,479.38.

"I think the initial reaction was, 'Yay, all these people are employed, and then, 'whoops,'" Brown said, during late-morning trading.

The whiplash day illustrated the complex and outsized role that the Fed has played in the stock market in recent weeks.

The Federal Reserve, led by Chairman Ben Bernanke, has been propping up the economy by buying bonds and keeping interest rates low. Investors know that the Fed isn't going to continue the stimulus forever, but they worry that developments like Friday's positive jobs report could make the Fed yank away the stimulus too soon.

The jobs picture "gives Bernanke more of a mandate" to rein in Fed stimulus programs, Brown said.

As investors bought stocks, they sold bonds, another sign that they think the Fed will tamp down its bond buying. The yield on the 10-year Treasury note jumped dramatically to 2.73 percent from late Wednesday's level of 2.51 percent. That was the highest yield for the 10-year note since August 2011.

Relatively few shares changed hands Friday because many traders were still on vacation after the Fourth of July holiday Thursday. Light volume may have contributed to the market's early volatility. The market can be moved by changes in even a relatively small numbers of shares.

Traders also noted that U.S. stock indexes were playing catch-up after missing out on Europe's big gains Thursday.

Stocks in Europe had jumped Thursday, including a 3 percent gain in Britain's main index, after the European Central Bank and the Bank of England sought to soothe markets by saying they'd keep interest rates low for the foreseeable future. Investors there have been scared that their own central banks may follow the Fed's lead and rein in their economic stimulus measures soon.

The calming effect didn't last long. Markets were down throughout Europe on Friday, as investors there fretted over whether the Fed would pull back.

As for U.S. government bond trading, investors have been selling 10-year Treasuries for weeks in anticipation of a Fed pullback. As recently as May 3, the yield on the 10-year note was 1.6 percent. The current yield, while still low by historical standards, has created a sea change in the way investors view bonds.

Jordan Waxman, managing director and partner at HighTower, a wealth management firm in New York, said investors who had fled to bonds because they seemed safe weren't exactly soothed by their recent performance.

"It's like going to your favorite restaurant month in and month out, and then one day you see a rodent running across the restaurant," Waxman said. "It's going to be a while before you go back."

For the past three decades, bond interest rates have tended to move down rather than up, so the recent gains are throwing many investors for a loop, noted Craig Fehr, an investment strategist at Edward Jones in St. Louis.

"This is catching a lot of bond investors off guard," said Fehr. He's been telling clients to trim their holdings on long-term bonds.

The effects of potentially higher interest rates were evident throughout financial markets Friday. Stocks for small banks rose because investors believe those companies will benefit from being able to charge higher rates when they make loans

But homebuilder Lennar was the second-biggest decliner on the S&P 500, falling $1.42, or 4 percent, to $33.93. Investors worried that higher interest rates will make mortgages more expensive and tamp down on demand, although rates will still be low by historical standards.

The price of oil rose $1.98, or 2 percent, to $103.22 a barrel in New York. That could signal investors are optimistic about U.S. manufacturing and the broader economy ”” or it could mean they're unnerved by political unrest in Egypt. On Wednesday, the Egyptian military ousted President Mohammed Morsi, and his supporters began a series of protests and attacks Friday.

The dollar rose, which likely means that investors were feeling confident about the U.S. economy.

As for the U.S. jobs report, investors said it represented an economy on the mend.

The 195,000 additional jobs in June handily beat expectations for an increase of 165,000. The government also said that the economy added 70,000 more jobs in April and May combined than previously thought.

But there were also reasons for caution. More than half the job additions came from hotels, restaurants, entertainment and retail, which are usually lower paying.

Among stocks making big moves:

””KB Home fell 64 cents, or 3.4 percent, to $18.07. Beazer Homes lost 18 cents, or 1 percent, to $17.22.

””Lululemon, which makes high-end yoga clothing, fell after the company said its founder and chairman plans to sell a large portion of his stock. The stock lost 95 cents, or 1.5 percent, to $63.55.

””Newmont Mining was the biggest decliner in the S&P 500, hurt by a dip in gold prices. The stock lost $1.24, or 4.3 percent, to $27.78.

””Restoration Hardware, which sells high-end home products, fell after disclosing that an unnamed group of stockholders plan to sell some of its shares. The stock lost $1.28, or 1.7 percent, to $74.65.

5526

 

[bigdog]

Source: http://finance.yahoo.com

Cautious optimism about corporate earnings sent the stock market higher Monday.

U.S. companies start reporting their second-quarter results this week, led by aluminum producer Alcoa. Other major companies that will report include JPMorgan and Wells Fargo.

Analysts predict that earnings growth for companies in the Standard & Poor's 500 index will come in at 3 percent in the second quarter. While that rate would be down from 5 percent in the first quarter, earnings are still expected to reach record levels.

Investors and traders will search for evidence that companies are increasing revenues, not just cutting costs to boost profits. Sales growth is predicted to fall 0.3 percent in the second quarter.

"We'll be looking to see where revenue comes in," said Jim Dunigan, an executive vice president of investments at PNC.

The Dow rose 88.85 points, or 0.6 percent, to close at 15,224.69. The Standard & Poor's 500 index gained 8.57 points, or 0.5 percent, to end at 1,640.46.

Dell was among the big gainers in the S&P 500 index. An advisory firm recommended that company shareholders support a plan to take the computer company private. Founder Michael Dell and Silver Lake Partners have offered to buy Dell for $24.4 billion, or $13.65 a share. Dell rose 41 cents, or 3.1 percent, to $13.44.

The Russell 2000 index, an index of small-company stocks, closed at an all-time high 1,009.25. The index past the 1,000 mark for the first time Friday and has gained 19 percent this year, a sign that investors are more willing to take on risk. The gains have outpaced those of the Dow and S&P 500, which are up 16 percent and 15 percent, respectively.

In other trading, the Nasdaq composite rose 5.45, or 0.2 percent, to 3,484.83, the smallest gain of the major indexes.

The index was weighed down by a slump in Intel. The chipmaker fell after a Citigroup analyst wrote that weak PC sales and waning demand for smartphones would stunt the company's growth. Intel, which makes up 2.2 percent of the Nasdaq, fell 88 cents, or 3.6 percent, to $23.18.

The NYSE DOW closed HIGHER ▲ 88.85 points or ▲ 0.59% Monday, 8 July 2013
Symbol …........Last ......Change.....
Dow_Jones 15,224.69 ▲ 88.85 ▲ 0.59%
Nasdaq___ 3,484.83 ▲ 5.45 ▲ 0.16%
S&P_500__ 1,640.46 ▲ 8.57 ▲ 0.53%
30_Yr_Bond 3.640 ▼ -0.03 ▼ -0.92%

NYSE Volume 3,861,930,000
Nasdaq Volume 1,498,941,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,450.07 ▲ 28.40 ▲ 0.44%
DAX_____ 7,968.54 ▲ 162.54 ▲ 2.08%
CAC_40__ 3,823.83 ▲ 69.98 ▲ 1.86%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,797.60 ▼ -28.80 ▼ -0.60%
Shanghai_Comp 1,958.27 ▼ -48.93 ▼ -2.44%
Taiwan_Weight 7,886.34 ▼ -115.48 ▼ -1.44%
Nikkei_225____ 14,109.34 ▼ -200.63 ▼ -1.40%
Hang_Seng____ 20,582.19 ▼ -272.48 ▼ -1.31%
Strait_Times___ 3,155.47 ▼ -14.26 ▼ -0.45%
NZX_50_Index__ 4,493.30 ▲ 3.43 ▲ 0.08%

http://finance.yahoo.com/news/stocks-rise-earnings-kick-off-214403277.html

Stocks rise as earnings kick off; chipmakers fall

Stock market rises ahead of corporate earnings reports; Intel slump holds back Nasdaq

By Steve Rothwell, AP Markets Writer

Cautious optimism about corporate earnings sent the stock market higher Monday.

U.S. companies start reporting their second-quarter results this week, led by aluminum producer Alcoa. Other major companies that will report include JPMorgan and Wells Fargo.

Analysts predict that earnings growth for companies in the Standard & Poor's 500 index will come in at 3 percent in the second quarter. While that rate would be down from 5 percent in the first quarter, earnings are still expected to reach record levels.

Investors and traders will search for evidence that companies are increasing revenues, not just cutting costs to boost profits. Sales growth is predicted to fall 0.3 percent in the second quarter.

"We'll be looking to see where revenue comes in," said Jim Dunigan, an executive vice president of investments at PNC.

The Dow rose 88.85 points, or 0.6 percent, to close at 15,224.69. The Standard & Poor's 500 index gained 8.57 points, or 0.5 percent, to end at 1,640.46.

Dell was among the big gainers in the S&P 500 index. An advisory firm recommended that company shareholders support a plan to take the computer company private. Founder Michael Dell and Silver Lake Partners have offered to buy Dell for $24.4 billion, or $13.65 a share. Dell rose 41 cents, or 3.1 percent, to $13.44.

The Russell 2000 index, an index of small-company stocks, closed at an all-time high 1,009.25. The index past the 1,000 mark for the first time Friday and has gained 19 percent this year, a sign that investors are more willing to take on risk. The gains have outpaced those of the Dow and S&P 500, which are up 16 percent and 15 percent, respectively.

In other trading, the Nasdaq composite rose 5.45, or 0.2 percent, to 3,484.83, the smallest gain of the major indexes.

The index was weighed down by a slump in Intel. The chipmaker fell after a Citigroup analyst wrote that weak PC sales and waning demand for smartphones would stunt the company's growth. Intel, which makes up 2.2 percent of the Nasdaq, fell 88 cents, or 3.6 percent, to $23.18.

Other chipmakers also declined. Qualcomm dropped 96 cents, or 1.6 percent, to $59.99.

In government bond trading, the yield on the 10-year government note pulled back from a two-year high of 2.74 Friday. It fell to 2.64 percent on Monday.

The yield had jumped after the government reported strong U.S. hiring for June on Friday. Investors believe that the improving jobs market will prompt the Federal Reserve to ease back on its bond-buying program. The Fed is buying $85 billion in bonds each month to keep interest rates low and spur borrowing and investing.

For the first five months of the year stocks moved higher, supported by the backdrop of low interest rates, a recovering housing market and increased hiring. The S&P 500 index gained 17 percent by May 21 and stood at a record 1,669.

But the stock market pulled back when Fed chairman Ben Bernanke said that the central bank might consider easing its stimulus.

The S&P 500 dropped as low as 1,573 on June 24, about 5.7 percent below its record close.

Since then stocks have gradually recouped losses as investors appear to be getting more comfortable with higher interest rates. The S&P 500 is now 2.2 percent below its May record.

"Interest rates, even though they've risen, are still incredibly low," said Brent Schutte, a market strategist at BMO Private Bank. "Right now, increases in rates are a good thing because it means the economy is doing a little bit better."

The rising rates are still making bond investors nervous though.

Investors pulled a net $900 million from U.S. stock funds for the week ending June 26, but they withdrew $28.1 billion from bond funds over the same period, according to data from the Investment Company Institute.

That sell-off may boost stocks as investors look to reinvest their proceeds from bonds.

In commodities trading, the price of oil was little changed at $103.14 a barrel. The price of gold rose $22.20, or 1.8 percent, to $1,234.90 an ounce.

After the market closed Monday, Alcoa reported a wider second-quarter loss due to weak aluminum prices.

Alcoa lost $119 million, or 11 cents per share, in the April-through-June quarter. That compared with a loss of $2 million, or break-even on a per-share basis, a year earlier.

Alcoa fell 5 cents, or 0.6 percent, to $7.87 in after-hours trading.

Among other stocks making big moves:

Priceline rose $33.47, or 3.9 percent, to $888.60 after investment bank Morgan Stanley raised its price target for the online bookings company. Analysts at the bank believe that Priceline can climb as high as $1,010 as it continues to grow internationally and worries about shrinking profits dissipate.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market edged higher Tuesday as investors bought companies that fare best when the economic outlook is bright.

All major stocks indexes rose, but gains were led by the riskier parts of the market. The Russell 2000, an index of small-company stocks, climbed for a fourth straight day. The Dow Jones transportation average, seen as a leading indicator for the broader economy, also jumped.

The gains suggest that investors are getting more confident about the economy's prospects. In the first half of the year, stock markets were powered by the safer companies that paid large dividends.

"When you see that leadership from the smaller caps that's probably a good sign overall for the bigger blue chips to potentially follow suite," said Ryan Detrick, a senior technical strategist at Schaeffer's Investment Research. "People are leaving the more defensive areas."

The Russell 2000 rose eight points, or 0.9 percent, to 1,018.05. It has gained 4.2 percent in July and is moving deeper into record territory. The index has risen more this year than its large-company counterparts, the Dow Jones industrial average and the Standard & Poor's 500 index.

The Dow Jones transportation index rose the most among major U.S. indexes Tuesday, led by strong gains for Alaska Air Group and FedEx.

The index jumped 148 points, or 2.4 percent, to 6,446. Alaska Air Group rose 7 percent after it forecast an additional $50 million a year in revenue from increased fees. FedEx rose 6 percent on speculation that William Ackman's hedge fund, Pershing Square, could invest in the company.

Wall Street is also turning its attention to corporate earnings. The second-quarter results should give traders and investors fresh insights into the economy. Market watchers spent most of June trying to figure out where the Federal Reserve was headed with its economic stimulus program.

Along with the quarterly results, investors want to see how confident companies are about the rest of the year, said Cam Albright, director of asset allocation for Wilmington Trust Investment Advisors.

Major U.S. stock indexes have notched a series of all-time highs this year on expectations that earnings will remain at record levels.

"A lot of what the market has justified its advances on is a strong second-half for the economy and a strong second-half for earnings," said Albright. "It's important that we see verification of that."

The NYSE DOW closed HIGHER ▲ 75.65 points or ▲ 0.50% Tuesday, 9 July 2013
Symbol …........Last ......Change.....
Dow_Jones 15,300.34 ▲ 75.65 ▲ 0.50%
Nasdaq___ 3,504.26 ▲ 19.43 ▲ 0.56%
S&P_500__ 1,652.32 ▲ 11.86 ▲ 0.72%
30_Yr_Bond 3.650 ▲ 0.01 ▲ 0.30%

NYSE Volume 3,490,723,250
Nasdaq Volume 1,594,893,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,513.08 ▲ 63.01 ▲ 0.98%
DAX_____ 8,057.75 ▲ 89.21 ▲ 1.12%
CAC_40__ 3,843.56 ▲ 19.73 ▲ 0.52%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,866.50 ▲ 68.90 ▲ 1.44%
Shanghai_Comp 1,965.45 ▲ 7.18 ▲ 0.37%
Taiwan_Weight 7,971.18 ▲ 84.84 ▲ 1.08%
Nikkei_225____ 14,472.90 ▲ 363.56 ▲ 2.58%
Hang_Seng____ 20,683.01 ▲ 100.82 ▲ 0.49%
Strait_Times___ 3,182.87 ▲ 27.40 ▲ 0.87%
NZX_50_Index__ 4,523.69 ▲ 30.39 ▲ 0.68%

http://finance.yahoo.com/news/stocks-head-higher-fourth-day-142402032.html

Stocks head higher for fourth day

Stocks rise for 4th day as bullish signals grow; gains led by small companies

By Steve Rothwell, AP Markets Writer

The stock market edged higher Tuesday as investors bought companies that fare best when the economic outlook is bright.

All major stocks indexes rose, but gains were led by the riskier parts of the market. The Russell 2000, an index of small-company stocks, climbed for a fourth straight day. The Dow Jones transportation average, seen as a leading indicator for the broader economy, also jumped.

The gains suggest that investors are getting more confident about the economy's prospects. In the first half of the year, stock markets were powered by the safer companies that paid large dividends.

"When you see that leadership from the smaller caps that's probably a good sign overall for the bigger blue chips to potentially follow suite," said Ryan Detrick, a senior technical strategist at Schaeffer's Investment Research. "People are leaving the more defensive areas."

The Russell 2000 rose eight points, or 0.9 percent, to 1,018.05. It has gained 4.2 percent in July and is moving deeper into record territory. The index has risen more this year than its large-company counterparts, the Dow Jones industrial average and the Standard & Poor's 500 index.

The Dow Jones transportation index rose the most among major U.S. indexes Tuesday, led by strong gains for Alaska Air Group and FedEx.

The index jumped 148 points, or 2.4 percent, to 6,446. Alaska Air Group rose 7 percent after it forecast an additional $50 million a year in revenue from increased fees. FedEx rose 6 percent on speculation that William Ackman's hedge fund, Pershing Square, could invest in the company.

Wall Street is also turning its attention to corporate earnings. The second-quarter results should give traders and investors fresh insights into the economy. Market watchers spent most of June trying to figure out where the Federal Reserve was headed with its economic stimulus program.

Along with the quarterly results, investors want to see how confident companies are about the rest of the year, said Cam Albright, director of asset allocation for Wilmington Trust Investment Advisors.

Major U.S. stock indexes have notched a series of all-time highs this year on expectations that earnings will remain at record levels.

"A lot of what the market has justified its advances on is a strong second-half for the economy and a strong second-half for earnings," said Albright. "It's important that we see verification of that."

Alcoa was the first major company to announce second-quarter results. The aluminum maker late Monday reported a second-quarter loss that wasn't as big as financial analysts feared. The company benefited from strong demand for aluminum used in autos and airplanes, although that was offset by weaker prices.

Traders weren't blown away by the results, though. After initially rising, the stock ended down 1 cent, or 0.1 percent, to $7.91.

Yum Brands, which owns KFC, Pizza Hut and Taco Bell, and Family Dollar store are among the companies reporting their earnings this week. JPMorgan Chase and Wells Fargo will also report.

The Dow Jones industrial average rose 75 points, or 0.5 percent, to 15,300.34. The S&P 500 index gained 11 points, or 0.7 percent, to 1,652.32 The Nasdaq composite rose 19 points, or 0.6 percent, to 3,504.26

The S&P 500 has risen for four straight days, its best streak in almost two months. Gains were led by industrial firms and companies that provide raw materials. Telecommunications companies, which investors turn to when the economic outlook is gloomier, fell.

The S&P 500 is now just 1 percent below its May 21 record of 1,669. It was down almost 6 percent to 1,573 on June 24.

Stocks have recovered since Fed Chairman Ben Bernanke said that the central bank planned to reduce its economic stimulus.

The central bank is buying $85 billion in bonds a month to keep interest rates low and encourage borrowing and spending. That stimulus has been a major support in the stock markets' five-year rally.

Stock markets are likely to become more volatile as investors try to assess when and how quickly the central bank will cut back on stimulus, said Dean Junkas, chief investment officer of Wells Fargo Private Bank.

"More volatility in the second half of the year is what we're expecting," said Junkas.

In government bond trading, the yield on the 10-year Treasury note was little changed at 2.64 percent early Tuesday. The yield has pulled back after surging to 2.74 percent Friday, its highest level in almost two years, after the government reported strong hiring for June.

In commodities trading, the price of oil rose 17 cents, or 0.2 percent to $103.33 a barrel. Gold rose $12, or 1 percent, to $1,246.90.

Among other stocks making big moves:

”” WD-40 rose $3.13, or 5 percent, to $60.77 after the company reported earnings that beat financial analysts' forecasts.

”” Barnes and Noble rose 64 cents, or 3.6 percent, to $18.32 after the bookseller said Monday its CEO is leaving after three years. The company didn't name a replacement.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market's answer to Wednesday's Federal Reserve minutes? Yawn.

Major stock indexes were down a fraction of a percent more than an hour after the Fed released a report on its latest policy meeting in June. The declines mirrored those just before the Fed announcement, which offered no surprises.

The Dow Jones industrial average was down 20 points, or a fraction of a percent, at 15,279 as of 3:39 p.m. Eastern Daylight Time. The Standard & Poor's 500 dropped two points, or 0.1 percent, to 1,650. The Nasdaq was up 15, or 0.4 percent, at 3,519.

"I don't think the minutes offered anything that would change (my) view of the market's direction or the Fed's intentions," said Quincy Krosby, market strategist for Prudential Annuities.

Stocks slumped June 19 after the Fed meeting when Fed Chairman Ben Bernanke said that the central bank was considering easing back on its $85 billion bond-buying program. The market has since rebounded after a number of Fed policymakers reassured investors that the Fed would not curb its stimulus too quickly.

Investors will also focus on a speech Bernanke will deliver at the National Bureau of Economic Research after the market closes Wednesday.

Stocks had risen for four days in a row as investors became more confident about the economy after a strong June employment report.

Investors are watching earnings as companies start to report results for the second quarter, which ended 10 days ago. Analysts expect earnings growth to average 2.8 percent for the companies in the S&P 500, according to data from S&P Capital IQ.

In government bond trading, the yield on the 10-year Treasury note rose to 2.69 percent from 2.64 percent late Tuesday.

The NYSE DOW closed LOWER ▼ -8.68 points or ▼ -0.06% Wednesday, 10 July 2013
Symbol …........Last ......Change.....
Dow_Jones 15,291.66 ▼ -8.68 ▼ -0.06%
Nasdaq___ 3,520.76 ▲ 16.50 ▲ 0.47%
S&P_500__ 1,652.62 ▲ 0.30 ▲ 0.02%
30_Yr_Bond 3.690 ▲ 0.03 ▲ 0.93%

NYSE Volume 3,348,736,250
Nasdaq Volume 1,536,346,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,504.96 ▼ -8.12 ▼ -0.12%
DAX_____ 8,066.48 ▲ 8.73 ▲ 0.11%
CAC_40__ 3,840.53 ▼ -3.03 ▼ -0.08%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,885.40 ▲ 18.90 ▲ 0.39%
Shanghai_Comp 2,008.13 ▲ 42.67 ▲ 2.17%
Taiwan_Weight 8,011.69 ▲ 40.51 ▲ 0.51%
Nikkei_225____ 14,416.60 ▼ -56.30 ▼ -0.39%
Hang_Seng____ 20,904.56 ▲ 221.55 ▲ 1.07%
Strait_Times___ 3,188.04 ▲ 9.41 ▲ 0.30%
NZX_50_Index__ 4,556.77 ▲ 33.08 ▲ 0.73%

http://finance.yahoo.com/news/stocks-little-changed-fed-releases-194325574.html

Stocks little changed after Fed releases minutes

Stocks flat in afternoon trade after Fed minutes suggest no quick end to bond purchases

By Steve Rothwell, AP Markets Writer

The stock market's answer to Wednesday's Federal Reserve minutes? Yawn.

Major stock indexes were down a fraction of a percent more than an hour after the Fed released a report on its latest policy meeting in June. The declines mirrored those just before the Fed announcement, which offered no surprises.

The Dow Jones industrial average was down 20 points, or a fraction of a percent, at 15,279 as of 3:39 p.m. Eastern Daylight Time. The Standard & Poor's 500 dropped two points, or 0.1 percent, to 1,650. The Nasdaq was up 15, or 0.4 percent, at 3,519.

"I don't think the minutes offered anything that would change (my) view of the market's direction or the Fed's intentions," said Quincy Krosby, market strategist for Prudential Annuities.

Stocks slumped June 19 after the Fed meeting when Fed Chairman Ben Bernanke said that the central bank was considering easing back on its $85 billion bond-buying program. The market has since rebounded after a number of Fed policymakers reassured investors that the Fed would not curb its stimulus too quickly.

Investors will also focus on a speech Bernanke will deliver at the National Bureau of Economic Research after the market closes Wednesday.

Stocks had risen for four days in a row as investors became more confident about the economy after a strong June employment report.

Investors are watching earnings as companies start to report results for the second quarter, which ended 10 days ago. Analysts expect earnings growth to average 2.8 percent for the companies in the S&P 500, according to data from S&P Capital IQ.

In government bond trading, the yield on the 10-year Treasury note rose to 2.69 percent from 2.64 percent late Tuesday.

The price of crude oil jumped almost 3 percent to the highest level in 14 months after the U.S. government reported another steep decline in the nation's supplies. Oil rose $2.99 to $105.71 a barrel in New York.

The price of gold rose $1.5, or 0.1 percent, to $1,247.40 an ounce.

Among stocks making big moves:

”” Family Dollar Stores rose $5.28, or 8.3 percent, to $69.23 after the company's earnings beat analysts' forecasts.

”” Hewlett-Packard rose 44 cents, or 1.7 percent, to $25.91 after a Citigroup analyst raised his rating on the company. The analyst doubled his price target for the stock, saying the PC maker's turnaround efforts are taking hold.

””Fastenal, an industrial and construction supplies distributor, fell $1.51, or 3.2 percent, to $45.60 after the company reported that its second-quarter revenue fell short of analysts' estimates.

 

[bigdog]

Source: http://finance.yahoo.com

Call it the Bernanke Boost.

The stock market, which has been marching higher for a week, got extra fuel Thursday after Federal Reserve Chairman Ben Bernanke said the central bank will keep supporting the economy.

The Dow Jones industrial average and Standard & Poor's 500 surged to all-time highs. And the yield on the 10-year Treasury note continued to decline as investors bought bonds. Stocks that benefit most from a continuation of low interest rates, such as homebuilders, notched some of the biggest gains.

The chairman made the comments in a speech late Wednesday after U.S. markets had closed, saying the economy needs the Fed's easy-money policy "for the foreseeable future."

The U.S. economy needs help because unemployment is high, Bernanke said. His remarks seemed to ease investors' fears that the central bank will pull back on its economic stimulus too quickly. The Fed is currently buying $85 billion a month in bonds to keep interest rates low and to encourage spending and hiring.

Stock index futures rose overnight. Stocks surged when the market opened Thursday and stayed high for the rest of the day.

"The Fed has made it unequivocally clear that they are not in any hurry to do anything," said Alec Young, Global Equity Strategist at S&P Capital IQ. "It's very bullish for stocks."

The S&P 500 index jumped 22.40 points, or, 1.4 percent, to 1,675.02, surpassing its previous record close of 1,669 from May 21. The index rose for a sixth straight day, its longest streak in four months.

The Dow rose 169.26 points, or 1.1 percent, to 15,460.92, above its own all-time closing high of 15,409 set May 28.

The Nasdaq composite rose 57.55 points, or 1.4 percent, to 3,578.30, its highest level in nearly 13 years.

In government bond trading, the yield on the 10-year note fell to 2.57 percent from 2.63 percent Wednesday. The yield was as high as 2.74 percent Friday after the government reported strong hiring in June. Many traders took that report as a signal that the Fed would be more likely to slow its bond purchases sooner rather than later.

The Fed has also said it plans to keep short-term rates at record lows, at least until unemployment falls to 6.5 percent. Bernanke emphasized Wednesday that the level of unemployment is a threshold, not a trigger. The central bank might decide to keep its benchmark short-term rate near zero even after unemployment falls that low.

"It's back to the old accommodative Fed, so the markets are happy again," said Randy Frederick, Managing Director of Active Trading and Derivatives at the Schwab Center for Financial Research.

The market pulled back last month after Bernanke laid out a timetable for the Fed to wind down its bond-buying program. He said the central bank would likely ease back on its monthly purchases if the economy strengthened sufficiently.

The NYSE DOW closed HIGHER ▲ 169.26 points or ▲ 1.11% Thursday, 11 July 2013
Symbol …........Last ......Change.....
Dow_Jones 15,460.92 ▲ 169.26 ▲ 1.11%
Nasdaq___ 3,578.30 ▲ 57.55 ▲ 1.63%
S&P_500__ 1,675.02 ▲ 22.40 ▲ 1.36%
30_Yr_Bond 3.620 ▼ -0.06 ▼ -1.71%

NYSE Volume 3,823,326,500
Nasdaq Volume 1,689,659,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,543.41 ▲ 38.45 ▲ 0.59%
DAX_____ 8,158.80 ▲ 92.32 ▲ 1.14%
CAC_40__ 3,868.98 ▲ 28.45 ▲ 0.74%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,946.90 ▲ 61.50 ▲ 1.26%
Shanghai_Comp 2,072.99 ▲ 64.86 ▲ 3.23%
Taiwan_Weight 8,179.54 ▲ 167.85 ▲ 2.10%
Nikkei_225____ 14,472.58 ▲ 55.98 ▲ 0.39%
Hang_Seng____ 21,437.49 ▲ 532.93 ▲ 2.55%
Strait_Times___ 3,246.17 ▲ 58.13 ▲ 1.82%
NZX_50_Index__ 4,560.05 ▲ 3.29 ▲ 0.07%

http://finance.yahoo.com/news/stocks-surge-bernanke-allays-taper-212405098.html

Stocks surge after Bernanke allays taper fear

Stocks market rises to record high after Bernanke says Fed is in no rush to curtail stimulus

Call it the Bernanke Boost.

The stock market, which has been marching higher for a week, got extra fuel Thursday after Federal Reserve Chairman Ben Bernanke said the central bank will keep supporting the economy.

The Dow Jones industrial average and Standard & Poor's 500 surged to all-time highs. And the yield on the 10-year Treasury note continued to decline as investors bought bonds. Stocks that benefit most from a continuation of low interest rates, such as homebuilders, notched some of the biggest gains.

The chairman made the comments in a speech late Wednesday after U.S. markets had closed, saying the economy needs the Fed's easy-money policy "for the foreseeable future."

The U.S. economy needs help because unemployment is high, Bernanke said. His remarks seemed to ease investors' fears that the central bank will pull back on its economic stimulus too quickly. The Fed is currently buying $85 billion a month in bonds to keep interest rates low and to encourage spending and hiring.

Stock index futures rose overnight. Stocks surged when the market opened Thursday and stayed high for the rest of the day.

"The Fed has made it unequivocally clear that they are not in any hurry to do anything," said Alec Young, Global Equity Strategist at S&P Capital IQ. "It's very bullish for stocks."

The S&P 500 index jumped 22.40 points, or, 1.4 percent, to 1,675.02, surpassing its previous record close of 1,669 from May 21. The index rose for a sixth straight day, its longest streak in four months.

The Dow rose 169.26 points, or 1.1 percent, to 15,460.92, above its own all-time closing high of 15,409 set May 28.

The Nasdaq composite rose 57.55 points, or 1.4 percent, to 3,578.30, its highest level in nearly 13 years.

In government bond trading, the yield on the 10-year note fell to 2.57 percent from 2.63 percent Wednesday. The yield was as high as 2.74 percent Friday after the government reported strong hiring in June. Many traders took that report as a signal that the Fed would be more likely to slow its bond purchases sooner rather than later.

The Fed has also said it plans to keep short-term rates at record lows, at least until unemployment falls to 6.5 percent. Bernanke emphasized Wednesday that the level of unemployment is a threshold, not a trigger. The central bank might decide to keep its benchmark short-term rate near zero even after unemployment falls that low.

"It's back to the old accommodative Fed, so the markets are happy again," said Randy Frederick, Managing Director of Active Trading and Derivatives at the Schwab Center for Financial Research.

The market pulled back last month after Bernanke laid out a timetable for the Fed to wind down its bond-buying program. He said the central bank would likely ease back on its monthly purchases if the economy strengthened sufficiently.

On Thursday, Advanced Micro Devices was the biggest gainer in the S&P 500 after news that it the company will make chips for two big gaming devices. The company rose 47 cents, or 11.8 percent, to $4.45.

Homebuilders, which are sensitive to the outlook for interest rates, were also among top gainers.

D.R. Horton rose $1.93, or 9.2 percent, to $22.98 and Lennar Group climbed $2.88, or 8.3 percent, to $37.44.

The housing market has benefited from low interest rates because they help make mortgages cheaper.

"The Bernanke qualifications have taken the interest rate risk off the table and now it's really about what will earnings say," said Jonathan Lewis, chief investment officer at Samson Capital Advisors.

Corporations began reporting earnings this week for the second quarter, which ended 11 days ago. S&P Capital IQ forecast that companies in the S&P 500 will report average earnings growth of 3 percent compared with the second quarter last year.

The price of gold gained for a fourth straight day, climbing $32.50, or 2.6 percent, to $1,279.90 an ounce. Gold has rebounded this week after falling close to a three-year low.

Gold is rising because the prospect of continued stimulus from the Fed could weaken the dollar and increase the risk of inflation. That, in turn, increases the appeal of gold as an alternative investment.

The rise in gold helped mining stocks. Newport Mining gained $1.51, or 5.7 percent, to $28.12. Freeport-McMoRan Copper & Gold rose $1.24, or 4.6 percent, to $28.53.

In other commodity trading, oil fell back from a 16-month high, dropping $1.61, or 1.5 percent, to $104.91 a barrel.

Among stocks making big moves:

”” Bridgepoint Education rose $3.31, or 26 percent, to $15.92, after the for-profit education company said its Ashford University had won accreditation. Bridgepoint, which also operates the University of the Rockies, struggled with accreditation problems for much of 2012.

”” Rockwell Medical Technologies Inc. jumped 59 cents, or 15.7 percent, to $4.35, after the drug developer said an experimental treatment for kidney patients took a step toward winning approval.

”” Celgene rose $9.84, or 7.9 percent, $134.90 after the Swiss drugmaker said its cancer drug Revlimid met its goals in a late-stage study.

””Microsoft rose 98 cents, or 2.8 percent, to $35.69, after the company announced a major reorganization. The world's largest software maker has been struggling with a steady decline in PC demand as people turn to tablets and other mobile devices.

By Steve Rothwell, AP Markets Writer

 

[bigdog]

Source: http://finance.yahoo.com

It was another record day on Wall Street ”” barely.

After spending most of Friday flat or down, stocks rallied at the last minute and closed slightly higher, just enough to post new record highs for the Dow Jones industrial average and the Standard & Poor's 500 index.

The gains were tiny. And the new record doesn't mean much for investors, who hardly have any more money now than they did a day earlier. But it is a sign that investors believe the market's rally this year may not be over yet.

The S&P 500 has closed higher seven days in a row. The last time it did that was in March.

Investors had to look past a pessimistic outlook from UPS, which said it was seeing a slowdown in U.S. industry. And in the afternoon, Boeing shares tanked after one of its 787s caught on fire in London, reviving fears of the troubles that plane had with smoldering batteries earlier this year.

Other economic news was mixed. Profits at big banks Wells Fargo and JP Morgan came in better than expected, and that helped financial stocks. But a University of Michigan measure of consumer sentiment came in lower than expected for this month.

Investors will get a lot more information next week, when key reports on inflation and retail sales are due. That's also when the pace of company earnings reports picks up sharply. Results are due from the remaining big banks as well as General Electric, Intel, Microsoft and other industry bellwethers.

"This is the jump ball, this is the Lebron James of the market," said David Darst, chief investment strategist for Morgan Stanley Individual Investor Group, referring to the second-quarter earnings rush. "It's going to determine where the market goes."

The Dow closed up 3.38 points, just 0.02 percent, at 15,464.30. The Standard & Poor's 500 index rose 5.17 points, or 0.3 percent, to 1,680.19. Both indexes also closed at all-time highs on Thursday.

The Nasdaq composite edged up 21.78 points, or 0.6 percent, to 3,600.08. It's still well short of its record high of 5,048, set in March 2000.

The Russell 2000, which is made up of smaller companies, rose 3.35 points, or 0.3 percent, to close at 1,036.52.

All the big indexes are ahead for the week.

Stocks spent most of Friday down, but not down much. Analysts believe investors are waiting for several major earnings and economic reports next week before deciding whether the rally has further to run.

The NYSE DOW closed HIGHER ▲ 3.38 points or ▲ 0.02% Friday, 12 July 2013
Symbol …........Last ......Change.....
Dow_Jones 15,464.30 ▲ 3.38 ▲ 0.02%
Nasdaq___ 3,600.08 ▲ 21.78 ▲ 0.61%
S&P_500__ 1,680.19 ▲ 5.17 ▲ 0.31%
30_Yr_Bond 3.650 ▲ 0.02 ▲ 0.66%

NYSE Volume 3,302,820,000
Nasdaq Volume 1,575,734,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,544.94 ▲ 1.53 ▲ 0.02%
DAX_____ 8,212.77 ▲ 53.97 ▲ 0.66%
CAC_40__ 3,855.09 ▼ -13.89 ▼ -0.36%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,957.50 ▲ 10.60 ▲ 0.21%
Shanghai_Comp 2,039.49 ▼ -33.50 ▼ -1.62%
Taiwan_Weight 8,220.49 ▲ 40.95 ▲ 0.50%
Nikkei_225____ 14,506.25 ▲ 33.67 ▲ 0.23%
Hang_Seng____ 21,277.28 ▼ -160.21 ▼ -0.75%
Strait_Times___ 3,236.06 ▼ -12.86 ▼ -0.40%
NZX_50_Index__ 4,568.33 ▲ 8.28 ▲ 0.18%

http://finance.yahoo.com/news/stocks-inch-higher-setting-records-210032307.html

Stocks inch higher, setting new records

US stocks indexes creep higher for a new record; Boeing holds back the Dow

By Joshua Freed, AP Business Writer

It was another record day on Wall Street ”” barely.

After spending most of Friday flat or down, stocks rallied at the last minute and closed slightly higher, just enough to post new record highs for the Dow Jones industrial average and the Standard & Poor's 500 index.

The gains were tiny. And the new record doesn't mean much for investors, who hardly have any more money now than they did a day earlier. But it is a sign that investors believe the market's rally this year may not be over yet.

The S&P 500 has closed higher seven days in a row. The last time it did that was in March.

Investors had to look past a pessimistic outlook from UPS, which said it was seeing a slowdown in U.S. industry. And in the afternoon, Boeing shares tanked after one of its 787s caught on fire in London, reviving fears of the troubles that plane had with smoldering batteries earlier this year.

Other economic news was mixed. Profits at big banks Wells Fargo and JP Morgan came in better than expected, and that helped financial stocks. But a University of Michigan measure of consumer sentiment came in lower than expected for this month.

Investors will get a lot more information next week, when key reports on inflation and retail sales are due. That's also when the pace of company earnings reports picks up sharply. Results are due from the remaining big banks as well as General Electric, Intel, Microsoft and other industry bellwethers.

"This is the jump ball, this is the Lebron James of the market," said David Darst, chief investment strategist for Morgan Stanley Individual Investor Group, referring to the second-quarter earnings rush. "It's going to determine where the market goes."

The Dow closed up 3.38 points, just 0.02 percent, at 15,464.30. The Standard & Poor's 500 index rose 5.17 points, or 0.3 percent, to 1,680.19. Both indexes also closed at all-time highs on Thursday.

The Nasdaq composite edged up 21.78 points, or 0.6 percent, to 3,600.08. It's still well short of its record high of 5,048, set in March 2000.

The Russell 2000, which is made up of smaller companies, rose 3.35 points, or 0.3 percent, to close at 1,036.52.

All the big indexes are ahead for the week.

Stocks spent most of Friday down, but not down much. Analysts believe investors are waiting for several major earnings and economic reports next week before deciding whether the rally has further to run.

Key reports on inflation and retail sales are due next week, and the pace of company earnings reports picks up sharply. Reports are due from the remaining big banks as well as General Electric, Intel, Microsoft and other industry bellwethers.

"This is the jump ball, this is the Lebron James of the market," said David Darst, chief investment strategist for Morgan Stanley Individual Investor Group, referring to the second-quarter earnings rush. "It's going to determine where the market goes."

Anthony Conroy, managing director and head trader for ConvergEx Group, thinks it's likely that stocks will move higher, as long as second-quarter earnings reports at least match the low expectations that investors have. "The three most important things in the next couple of weeks are earnings, earnings, and earnings," he said.

Cost-cutting boosted profits at Wells Fargo, and its stock rose 74 cents, or 1.8 percent, to $42.63. JPMorgan Chase reported a 32 percent jump in profits, but its stock fell 17 cents to $54.97.

Conroy said JPMorgan's credit numbers were strong. "That means the consumer's out there spending and borrowing and propping up the whole economy, and that's a good thing," he said.

United Parcel Service sank $5.33, or 5.8 percent, to $86.12 after saying its second-quarter and full-year earnings will be less than analysts have been expecting because the company's customers are using cheaper shipping options. UPS also said it's seeing a slowdown in U.S. industry.

FedEx fell, too. Its shares were down $2.11, or 2 percent, to $102.29.

Boeing dropped after a fire on a 787 parked at Heathrow Airport, and after another 787 had to divert to a different airport. Boeing struggled earlier this year after its new 787 was grounded for more than three months because of smoldering batteries, and investors are nervous about any additional problems with the plane.

Before news of the fire broke, Boeing set a new 52-week high of $108.15 earlier Friday. The stock dropped $5.01, or 4.7 percent, to close at $101.87 on high volume. Boeing was the biggest decliner in the Dow.

Other stocks with notable moves included:

”” Gap rose 34 cents, or 0.8 percent, to $45.10. Three analysts lifted their price targets after Gap posted revenue at stores open at least a year that was better than the market was expecting.

”” WebMD jumped $6.86, or 25 percent, to $33.82 after the medical website operator sharply raised its forecast for its second-quarter results, citing strong demand from advertisers.

”” RadioShack Corp. rose 29 cents, or 11 percent, to $2.92. Investors were spooked late Thursday after a report that it had hired financial advisers. But they appeared to be reassured after the struggling electronics retailer said it has a strong balance sheet and that the "sole focus" of its discussions with advisers is making its balance sheet stronger.

The yield on the 10-year Treasury note rose slightly to 2.59 percent from 2.57 percent.

The yield has risen almost a full percentage point since early May, pushing interest rates higher for mortgages and other loans. There's a fear that higher rates could hurt housing and business borrowing.

John Fox, director of research at Fenimore Asset Management, said housing is improving, employment is improving, and retail and auto sales are good. "Is that all just going to disappear if we have a 3.5 percent Treasury bond? I don't think it will."

Crude oil rose $1.04 to close at $105.95 per barrel in the U.S. Other energy prices also rose. Gold slipped $2.30 to $1,277.60.

6089

 

[bigdog]

Source: http://finance.yahoo.com

Boeing helped the stock market edge higher Monday, extending a scorching start to July.

The plane maker's stock was one of the standouts as the Standard & Poor's 500 index rose for an eighth straight day, its longest streak of gains since January.

Boeing gained $3.79, or 3.7 percent, to $105.66 after it was found that batteries were not the cause of a fire on one of its 787 aircraft at London's Heathrow airport Friday. Earlier this year, smoldering batteries on two 787s caused the plane to be grounded for more than three months.

The gains continued a hot streak for the market this month. Stocks rose to record levels last week after Federal Reserve Chairman Ben Bernanke said the central bank would not ease its stimulus before the economy was ready. The central banker's comments also stemmed a rise in Treasury yields.

"The general bias to the market is up," said David Kelly, chief global strategist at JPMorgan Funds. "You can see a clear path to economic growth in the United States."

The Dow Jones industrial average rose 19.96 points, or 0.1 percent, to close at 15,484.26.

The Standard & Poor's 500 index rose 2.31 points, also 0.1 percent, to 1,682.50. The S&P is up 4.8 percent so far in July, putting it on track to surpass the 5 percent gain it had in January. Both the Dow and S&P are at all-time highs.

The Nasdaq composite rose 7.41 points, or 0.2 percent, to 3,607.49.

Small-company stocks had the biggest gains Monday. That's a sign investors are becoming confident in taking on more risk in exchange for the possibility of greater returns. The Russell 2000 rose 6.78 points, or 0.7 percent, to 1,043.30, bringing its gains for the year to 22.8 percent. That's far ahead of the S&P's year-to-date gain of 18 percent.

Investors will be listening to comments from Bernanke again this week for more clues about the central bank's outlook for the economy. The Fed chairman will give his semi-annual testimony to Congress on Wednesday. The central bank is currently buying $85 billion of bonds a month to keep interest rates low and to encourage borrowing and hiring.

The pace of companies reporting earnings will also increase this week.

"We expect modest earnings gains and we expect that management teams will guide for a cautiously optimistic view in the second half," said Jim Russell, a regional investment director at US Bank.

Earnings for the second quarter will rise by an average 3.2 percent for S&P 500 companies from a year ago, according to data from S&P Capital IQ. Earnings at financial companies are expected to rise by 18.8 percent, the most of any industry group.

The NYSE DOW closed HIGHER ▲ 19.96 points or ▲ 0.13% Monday, 15 July 2013
Symbol …........Last ......Change.....
Dow_Jones 15,484.26 ▲ 19.96 ▲ 0.13%
Nasdaq___ 3,607.49 ▲ 7.41 ▲ 0.21%
S&P_500__ 1,682.50 ▲ 2.31 ▲ 0.14%
30_Yr_Bond 3.610 ▼ -0.04 ▼ -1.04%

NYSE Volume 2,845,119,000
Nasdaq Volume 1,484,063,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,586.11 ▲ 42.70 ▲ 0.65%
DAX_____ 8,234.81 ▲ 22.04 ▲ 0.27%
CAC_40__ 3,878.58 ▲ 23.49 ▲ 0.61%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,965.60 ▲ 8.10 ▲ 0.16%
Shanghai_Comp 2,059.39 ▲ 19.90 ▲ 0.98%
Taiwan_Weight 8,254.68 ▲ 34.19 ▲ 0.42%
Nikkei_225____ 14,506.25 ▲ 33.67 ▲ 0.23%
Hang_Seng____ 21,303.31 ▲ 26.03 ▲ 0.12%
Strait_Times___ 3,236.82 ▲ 0.76 ▲ 0.02%
NZX_50_Index__ 4,606.24 ▲ 37.91 ▲ 0.83%

http://finance.yahoo.com/news/stocks-edge-higher-extending-hot-182651965.html

Stocks edge higher, extending a hot start to July

A gain by Boeing helps the stock market edge higher, extending a scorching start to July

By Steve Rothwell, AP Markets Writer

Boeing helped the stock market edge higher Monday, extending a scorching start to July.

The plane maker's stock was one of the standouts as the Standard & Poor's 500 index rose for an eighth straight day, its longest streak of gains since January.

Boeing gained $3.79, or 3.7 percent, to $105.66 after it was found that batteries were not the cause of a fire on one of its 787 aircraft at London's Heathrow airport Friday. Earlier this year, smoldering batteries on two 787s caused the plane to be grounded for more than three months.

The gains continued a hot streak for the market this month. Stocks rose to record levels last week after Federal Reserve Chairman Ben Bernanke said the central bank would not ease its stimulus before the economy was ready. The central banker's comments also stemmed a rise in Treasury yields.

"The general bias to the market is up," said David Kelly, chief global strategist at JPMorgan Funds. "You can see a clear path to economic growth in the United States."

The Dow Jones industrial average rose 19.96 points, or 0.1 percent, to close at 15,484.26.

The Standard & Poor's 500 index rose 2.31 points, also 0.1 percent, to 1,682.50. The S&P is up 4.8 percent so far in July, putting it on track to surpass the 5 percent gain it had in January. Both the Dow and S&P are at all-time highs.

The Nasdaq composite rose 7.41 points, or 0.2 percent, to 3,607.49.

Small-company stocks had the biggest gains Monday. That's a sign investors are becoming confident in taking on more risk in exchange for the possibility of greater returns. The Russell 2000 rose 6.78 points, or 0.7 percent, to 1,043.30, bringing its gains for the year to 22.8 percent. That's far ahead of the S&P's year-to-date gain of 18 percent.

Investors will be listening to comments from Bernanke again this week for more clues about the central bank's outlook for the economy. The Fed chairman will give his semi-annual testimony to Congress on Wednesday. The central bank is currently buying $85 billion of bonds a month to keep interest rates low and to encourage borrowing and hiring.

The pace of companies reporting earnings will also increase this week.

"We expect modest earnings gains and we expect that management teams will guide for a cautiously optimistic view in the second half," said Jim Russell, a regional investment director at US Bank.

Earnings for the second quarter will rise by an average 3.2 percent for S&P 500 companies from a year ago, according to data from S&P Capital IQ. Earnings at financial companies are expected to rise by 18.8 percent, the most of any industry group.

Citigroup gained Monday, leading other bank stocks higher, after reporting earnings that beat analysts' expectations for the second quarter as investment banking profits surged. The bank's stock rose $1, or 2 percent, to $51.81.

A closely watched report on U.S. retail sales Monday morning had some disappointments for investors. Americans spent more at retail businesses in June, buying more cars and trucks, furniture and clothes, but they cut back on many other purchases, a mixed sign for economic growth. Retail sales rose just 0.4 percent from May, less than analysts had forecast and less than the 0.5 percent increase the previous month.

The market's advance was held back by news that economic growth in China, the second-biggest economy in the world, fell to the lowest since 1991, hurt by weak trade and efforts to cool a credit boom. China's economy expanded at an annual rate of 7.5 percent in the second quarter, down from 7.7 percent in the same period a year earlier.

Slowing global growth is one of the biggest threats to this year's stock rally, said Uri Landesman, President of Platinum Partners. He predicts that stocks may be poised to slump as much as 15 percent in the coming months. Landesman said this year's market advance overstates the outlook for the economy.

"Most of the world's economies are sucking wind," Landesman said. "It's going to be very difficult to keep (the U.S. economy) going with weak exports."

In commodities trading, the price of crude oil rose 37 cents to $106.32 a barrel. Gold rose $5.90, or 0.5 percent, to $1,283.50 an ounce. The dollar rose against the euro and the Japanese yen.

In government bond trading, the yield on the 10-year Treasury note fell to 2.55 percent from 2.58 percent Friday. The yield is used as a benchmark for many kinds of loans including home mortgages.

Among other stocks making big moves, Leap Wireless soared $8.97, or 112 percent, to $16.95 after the carrier agreed to be acquired by AT&T for $1.19 billion, or $15 a share. The deal was announced late Friday. AT&T fell 26 cents, or 0.7 percent, $35.55.

 

[bigdog]

Source: http://finance.yahoo.com

A string of lackluster earnings reports from companies including Coca-Cola and Charles Schwab ended an eight-day winning streak for the Standard & Poor's 500 index.

Coca-Cola, the world's largest beverage maker, fell after the company said it sold less soda in its home market of North America. Retail brokerage Charles Schwab's second-quarter earnings fell short of what analysts were expecting. Marathon Petroleum fell after the fuel refiner forecast weak earnings and said its business was being hurt by renewable fuels laws.

"The expectations out there for earnings overall, they're pretty modest," said Scott Wren, senior equity strategist at Wells Fargo. "Earnings season is not going to be what drives the market from here."

The Dow Jones industrial average fell 32.41 points, 0.2 percent, to 15,451.85. The Standard & Poor's 500 index declined 6.24 points, or 0.4 percent, to 1,676.26. The Nasdaq composite dropped 8.99 points, or 0.3 percent, to 3,598.50.

Eight of the 10 industry groups in the S&P 500 fell. The declines were led by materials companies. Phone companies and technology companies were the two groups that gained.

Coke dropped 78 cents, or 1.9 percent, to $40.23 after the company reported that its second-quarter profit fell 4 percent. Charles Schwab fell 71 cents, or 3.3 percent, to $21 after its earnings came in short of analysts' expectations as expenses rose and its interest margins fell. Marathon Petroleum fell $3.17, or 4.3 percent, to $69.93.

"Expectations for earnings growth this quarter are fairly subdued," said Michael Sheldon, chief market strategist for RDM Financial Group. "However, the important thing for investors is to look ahead to the second half of the year, where earnings are supposed to pick up significantly."

Overall S&P 500 earnings are expected to grow by 3.4 percent in the second quarter from the same period a year ago, according to data from S&P Capital IQ. The rate of earnings growth is predicted to rise in the third and fourth quarters, reaching 11.6 percent in the final three months of the year.

The stock market has climbed back to record levels following a brief slump in June, when the S&P 500 logged its first monthly decline since October on concern that the Federal Reserve would ease back on its economic stimulus too quickly. The S&P 500 gained for eight straight trading sessions through Monday, its longest winning streak since January. Had the index ended higher Tuesday, it would have marked the longest series of advances since 2004.

The index is up 4.4 percent in July, putting it on track to log its biggest monthly gain since January, when it rose 5 percent.

Stocks got a boost last week when Bernanke said the central bank would not ease its stimulus before the economy was ready. Investors will be listening to his comments again this week for more clues about the central bank's outlook for the economy. The Fed chairman will give his semi-annual testimony to Congress on Wednesday.

The NYSE DOW closed LOWER ▼ -32.41 points or ▼ -0.21% Tuesday, 16 July 2013
Symbol …........Last ......Change.....
Dow_Jones 15,451.85 ▼ -32.41 ▼ -0.21%
Nasdaq___ 3,598.50 ▼ -8.99 ▼ -0.25%
S&P_500__ 1,676.26 ▼ -6.24 ▼ -0.37%
30_Yr_Bond 3.580 ▼ -0.03 ▼ -0.75%

NYSE Volume 3,341,295,750
Nasdaq Volume 1,611,654,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 6,556.35 ▼ -29.76 ▼ -0.45%
DAX_____ 8,201.05 ▼ -33.76 ▼ -0.41%
CAC_40__ 3,851.03 ▼ -27.55 ▼ -0.71%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,968.60 ▲ 3.00 ▲ 0.06%
Shanghai_Comp 2,065.72 ▲ 6.33 ▲ 0.31%
Taiwan_Weight 8,260.11 ▲ 5.43 ▲ 0.07%
Nikkei_225____ 14,599.12 ▲ 92.87 ▲ 0.64%
Hang_Seng____ 21,312.38 ▲ 9.07 ▲ 0.04%
Strait_Times___ 3,224.96 ▼ -11.86 ▼ -0.37%
NZX_50_Index__ 4,576.54 ▼ -29.70 ▼ -0.64%

http://finance.yahoo.com/news/stocks-decline-earnings-coca-cola-155305451.html

Stocks decline on earnings; Coca-Cola drops

US stocks decline on disappointing earnings reports; Coca-Cola drops as soda sales fall

By Steve Rothwell, AP Markets Writer

A string of lackluster earnings reports from companies including Coca-Cola and Charles Schwab ended an eight-day winning streak for the Standard & Poor's 500 index.

Coca-Cola, the world's largest beverage maker, fell after the company said it sold less soda in its home market of North America. Retail brokerage Charles Schwab's second-quarter earnings fell short of what analysts were expecting. Marathon Petroleum fell after the fuel refiner forecast weak earnings and said its business was being hurt by renewable fuels laws.

"The expectations out there for earnings overall, they're pretty modest," said Scott Wren, senior equity strategist at Wells Fargo. "Earnings season is not going to be what drives the market from here."

The Dow Jones industrial average fell 32.41 points, 0.2 percent, to 15,451.85. The Standard & Poor's 500 index declined 6.24 points, or 0.4 percent, to 1,676.26. The Nasdaq composite dropped 8.99 points, or 0.3 percent, to 3,598.50.

Eight of the 10 industry groups in the S&P 500 fell. The declines were led by materials companies. Phone companies and technology companies were the two groups that gained.

Coke dropped 78 cents, or 1.9 percent, to $40.23 after the company reported that its second-quarter profit fell 4 percent. Charles Schwab fell 71 cents, or 3.3 percent, to $21 after its earnings came in short of analysts' expectations as expenses rose and its interest margins fell. Marathon Petroleum fell $3.17, or 4.3 percent, to $69.93.

"Expectations for earnings growth this quarter are fairly subdued," said Michael Sheldon, chief market strategist for RDM Financial Group. "However, the important thing for investors is to look ahead to the second half of the year, where earnings are supposed to pick up significantly."

Overall S&P 500 earnings are expected to grow by 3.4 percent in the second quarter from the same period a year ago, according to data from S&P Capital IQ. The rate of earnings growth is predicted to rise in the third and fourth quarters, reaching 11.6 percent in the final three months of the year.

The stock market has climbed back to record levels following a brief slump in June, when the S&P 500 logged its first monthly decline since October on concern that the Federal Reserve would ease back on its economic stimulus too quickly. The S&P 500 gained for eight straight trading sessions through Monday, its longest winning streak since January. Had the index ended higher Tuesday, it would have marked the longest series of advances since 2004.

The index is up 4.4 percent in July, putting it on track to log its biggest monthly gain since January, when it rose 5 percent.

Stocks got a boost last week when Bernanke said the central bank would not ease its stimulus before the economy was ready. Investors will be listening to his comments again this week for more clues about the central bank's outlook for the economy. The Fed chairman will give his semi-annual testimony to Congress on Wednesday.

That testimony may have more impact on the stock market this week than any earnings reports, said Wells Fargo's Wren.

Esther George, the President of Kansas City branch of the Fed, and a voting member of the committee that sets the Fed's monetary policy, said Tuesday that the central bank should cut back on its stimulus as the labor market begins to recover. The central bank is currently buying $85 billion of bonds a month to keep interest rates low and to encourage borrowing and hiring.

"It is time to adjust those purchases," George said in an interview on Fox Business News. "Sooner is appropriate ... because we have a long way to go if we are going to do this in a gradual and a systematic way."

In government bond trading, the yield on the 10-year Treasury note was unchanged from 2.54 percent Monday. The yield, which moves inversely to its price, has fallen since surging as high as 2.74 percent July 5.

In commodities trading, the price of crude oil fell 32 cents, or 0.3 percent, to $106 a barrel and gold rose $6.90, or 0.5 percent, to $1,290.40 an ounce.

The dollar fell against the euro and the Japanese yen.

Among other stocks making big moves:

”” Heidrick & Struggles International dropped $3.07, or 17 percent, to $14.79 after the executive search firm said it is longer pursuing a sale of its business and that its CEO is stepping down.

”” Ford fell 52 cents, or 3 percent, to $16.60 after Goldman Sachs removed the carmaker from its "conviction buy list" due to a lack of catalysts to push the company's stock higher in the near future. Ford has gained 28 percent this year.

”” Goldman Sachs dropped $2.76, or 1.7 percent, to $160.24 as investors focused on the outlook for the bank's regulatory environment, even after the bank said its profit doubled in the second quarter.