That was a huge reversal...on the DOW at least NASDAQ and SP500 is up....Boeing seems to be the culprit on the DOW last nite being down 5.81%. Metals are up so it cant be too bad for our market...
U.S. Markets Wrap: Treasuries Fall on Fed Action, Dollar Rises Share | Email | Print | A A A
By Liz Capo McCormick and Margot Habiby
June 24 (Bloomberg) -- Treasuries fell for the first time in four days as the Federal Reserve kept the size of its asset- purchase programs unchanged, failing to ease concern that record government borrowing may lead to higher interest rates. The dollar, gold and equities advanced.
Treasury yields rose the most on longer-maturity debt even as policy makers said inflation will remain “subdued for some time.” Fed Chairman Ben S. Bernanke has emphasized that the central bank can successfully take back more than $1 trillion it pumped into the U.S. banking system to pull the economy out of recession without stoking inflation.
“If there was a surprise, then maybe it was the fact that there was no mention of the exit strategy,” said James Caron, head of U.S. interest-rate strategy at Morgan Stanley in New York, one of 17 primary dealers that trade with the Fed. “That was a wild card.”
The 10-year note yield increased six basis points, or 0.06 percentage point, to 3.70 percent at 3:47 p.m. in New York, according to BGCantor Market Data. The 3.125 percent security due May 2019 fell 1/2, or $5 per $1,000 face amount, to 95 10/32.
Two-year note yields rose 11 basis points to 1.20 percent. The 30-year bond slumped, pushing the yield up nine basis points to 4.44 percent.
“Substantial resource slack is likely to dampen cost pressures, and the Committee expects that inflation will remain subdued for some time,” the Federal Open Market Committee said in a statement after a two-day meeting in Washington where it also kept the benchmark interest rate between zero and 0.25 percent. The rate will stay at “exceptionally low levels” for an “extended period.”
Dollar Rises
The dollar rose against the yen for the first time in four days and advanced versus the euro after the Fed left the $1.75 trillion bond-purchase program unchanged. Gold and silver also advanced.
“The Fed is not standing in the way of rising yields,” said Todd Elmer, currency strategist at Citigroup Global Markets in New York. “For the time being, this provides knee-jerk support to the dollar. The dollar is more sensitive to relative interest-rate differentials recently than to pure swings of risk appetite.”
The greenback gained 0.3 percent to 95.54 yen at 3:45 p.m. in New York, from 95.22 yen yesterday. The dollar appreciated 1.1 percent to $1.3931 against the euro from $1.4077. The euro dropped 0.7 percent to 133.11 yen from 134.04.
Gold, Silver Gain
Gold futures for August delivery rose $10.10, or 1.1 percent, to $934.40 an ounce on the New York Mercantile Exchange’s Comex division. The most-active contract advanced 0.4 percent yesterday. Bullion for immediate delivery gained $8.52, or 0.9 percent, to $934.35 an ounce at 6:50 p.m. in London.
Silver for July delivery climbed 6.6 cents, or 0.5 percent, to $13.942 an ounce in New York. Silver for immediate delivery gained 5.25 cents, or 0.4 percent, to $13.9025 an ounce at 6:51 p.m. in London.
Most U.S. stocks rose as durable goods orders unexpectedly jumped and earnings topped estimates at Oracle Corp. Equities pared gains and the Dow Jones Industrial Average fell as the Federal Reserve disappointed investors by not increasing its bond-purchase program.
S&P Advances
About five stocks advanced for every two that fell on the New York Stock Exchange. The S&P 500 added 0.7 percent to 900.94 at 4:04 p.m. in New York after climbing as much as 1.8 percent earlier. The Dow lost 23.05 points, or 0.3 percent, to 8,299.86. The Nasdaq Composite rallied 1.6 percent.
Crude oil and gasoline fell after a government report showed that fuel supplies climbed more than forecast as refineries increased operating rates.
Crude oil for August delivery fell 57 cents, or 0.8 percent, to settle at $68.67 a barrel at 2:45 p.m. on the New York Mercantile Exchange. Futures, up 54 percent this year, have declined 6.2 percent from a seven-month high of $73.23 reached on June 11.
Gasoline for July delivery dropped 5.07 cents, or 2.7 percent, to end the session at $1.8425 a gallon in New York. It was the lowest settlement since May 22.
Sugar prices jumped to the highest in more than three years on speculation that output in India, the world’s second-biggest producer, will decline for the second straight year. Raw-sugar futures for October delivery rose 0.15 cent, or 0.9 percent, to 17.13 cents a pound on ICE Futures U.S. in New York. The price earlier reached 17.39 cents, the highest for a most-active contract since May 15, 2006.
To contact the reporters on this story: Liz Capo McCormick in New York at [email protected]; Margot Habiby in Dallas at [email protected].
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