U.S. stocks tumbled as concern about loan defaults increased, investors balked at funding takeovers and companies including Exxon Mobil Corp. reported earnings that missed analysts' estimates.
Home Sales
New homes sales in the U.S. fell 6.6 percent in June, more than the 2.7 percent drop economists had forecast, signaling no end to the real-estate slump that's weakened the economy. Purchases of new homes in the U.S. dropped 6.6 percent in June, the most since January, to an annual pace of 834,000 last month from a revised 893,000 rate the prior month that was less than previously estimated, the Commerce Department said.
Concern takeovers are costing more to finance also pushed down stocks. About $3.07 trillion in global mergers and acquisitions helped send the S&P 500 and Dow average to records earlier this month.
10-year Bond yield
The yield on the benchmark 10-year note fell 6 basis points, or 0.06 percentage point, to 4.84 percent at 11:01 a.m. in New York, according to bond broker Cantor Fitzgerald LP. It earlier declined to 4.81 percent, the lowest since May 22. The price of the 4 1/2 percent security maturing in May 2017 rose 15/32, or $4.69 per $1,000 face amount, to 97 13/16. Yields move inversely to bond prices.
Ten-year notes yield 21 basis points more than two-year debt, the widest the gap has been since June 26.
The government will auction $13 billion of five-year notes at 1 p.m. New York time.
``Once bucked 4.88 percent on the 10-year note, you're going to have pretty clear sailing to 4.78 percent''
U.S. Durable-Goods Orders Excluding Transport Decline
Orders for U.S.-made durable goods such as computers and telephone equipment unexpectedly dropped in June for a second month as consumer spending slowed. Demand for goods meant to last several years, excluding airplanes and motor vehicles, fell 0.5 percent, after a revised 0.2 percent drop in May
Consumer spending -- which kept the economy alive for most of the past year -- is slowing, leading companies to order less from America's factories. Federal Reserve policy makers have said a lack of business investment is a risk for an economy already hurt by the biggest housing slump in 16 years.
Home Sales
New homes sales in the U.S. fell 6.6 percent in June, more than the 2.7 percent drop economists had forecast, signaling no end to the real-estate slump that's weakened the economy. Purchases of new homes in the U.S. dropped 6.6 percent in June, the most since January, to an annual pace of 834,000 last month from a revised 893,000 rate the prior month that was less than previously estimated, the Commerce Department said.
Concern takeovers are costing more to finance also pushed down stocks. About $3.07 trillion in global mergers and acquisitions helped send the S&P 500 and Dow average to records earlier this month.
10-year Bond yield
The yield on the benchmark 10-year note fell 6 basis points, or 0.06 percentage point, to 4.84 percent at 11:01 a.m. in New York, according to bond broker Cantor Fitzgerald LP. It earlier declined to 4.81 percent, the lowest since May 22. The price of the 4 1/2 percent security maturing in May 2017 rose 15/32, or $4.69 per $1,000 face amount, to 97 13/16. Yields move inversely to bond prices.
Ten-year notes yield 21 basis points more than two-year debt, the widest the gap has been since June 26.
The government will auction $13 billion of five-year notes at 1 p.m. New York time.
``Once bucked 4.88 percent on the 10-year note, you're going to have pretty clear sailing to 4.78 percent''
U.S. Durable-Goods Orders Excluding Transport Decline
Orders for U.S.-made durable goods such as computers and telephone equipment unexpectedly dropped in June for a second month as consumer spending slowed. Demand for goods meant to last several years, excluding airplanes and motor vehicles, fell 0.5 percent, after a revised 0.2 percent drop in May
Consumer spending -- which kept the economy alive for most of the past year -- is slowing, leading companies to order less from America's factories. Federal Reserve policy makers have said a lack of business investment is a risk for an economy already hurt by the biggest housing slump in 16 years.
No comments:
Post a Comment