Stocks moved higher on Tuesday with investors showing confidence that Greece will support their Prime Minister. The Dow topped 12,200 for part of the trading day but still finished up over 100 points. Also, the Dollar fell against major currencies like the Yen, Euro, and Pound.
To read a related CNN Money article, please click here:
http://money.cnn.com/2011/06/21/markets/markets_newyork/index.htm?iid=HP_LN
Jim Sutliff
The Dow Jones Industrial Average rose almost fifty points and finished slightly above 12,000. This was the first weekly gain for the Dow after having six losing weeks. Investors were optimistic that Greece would receive a bailout and that sent the Dow higher in early trading.
To read a related Wall Street Journal article, please click here:
James Sutliff
Pandora Media raised $234.9 million in an initial public offering and is listed on the New York Stock Exchange with the symbol P. Investor demand led Pandora to increase the size of the offering by 43% last week. Pandora sold 14.7 million shares at $16 per share.
To read a related Bloomberg article, please click here:
Jim Sutliff
Municipal bonds are facing proposals that would eliminate their tax exempt status. Republican Paul Ryan submitted a budget proposal that was aimed at lowering the deficit but also would end municpal bond tax exemption. It is not likely that municipal bonds will lose their tax exempt status because of the effect it would have on the issuers.
To read a related Bloomberg article, please click here:
Jim Sutliff
According to CEO Sergio Marchionne, an initial public offering for Chrysler will most likely happen in 2012. Marchionne stated that Chrysler would need a longer track record of success and that equity markets needed to improve for an IPO. Sergio Marchionne is the CEO of Chrysler as well as Fiat.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/06/03/us-chrysler-ipo-idUSTRE75264S20110603
James Sutliff
The Dow Jones Industrial Average fell almost 300 points after a weak jobs report. The jobs report was followed by the Institute for Supply Management factory index that indicated a slow pace of expansion for U.S. manufacturing. Yields for ten year Treasury notes fell below 3% for the first time this year.
To read a related Bloomberg article, please click here:
Jim Sutliff
The Euro lost ground against other major currencies as the Greek debt crisis concerned traders. Also, European stocks were flat or showed slight declines in light trading on Monday.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/05/30/us-markets-global-idUSTRE71H0EB20110530
James Sutliff
The economic conditions in Greece are forcing the Greek government to accelerate asset sales. The asset sales coupled with budget cuts totaling 6 billion euros are hoped to win more aid. The debt crisis in Europe is also having an effect on domestic markets.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/news/2011-05-23/greece-to-accelerate-asset-sales-as-bonds-drop.html
James Sutliff
Municpal bonds have rebounded over the last month with yields for AAA rated munis falling for 25 consecutive trading days. Investors are willing to accept slightly more risk to achieve greater returns than from safe U.S. Treasuries. The tax free component of municipal bonds is another factor for investors.
To read a related CNN Money article, please click here:
http://money.cnn.com/2011/05/17/markets/munis/index.htm?iid=HP_LN
James Sutliff
Treasuries ended a five week winning streak and fell on economic data and a rise in commodities. Yields remained low this week with the sale of $72 billion in notes and bonds. Also, inflation concerns are easing and investors are seeking higher returns than provided by safe U.S. Treasuries.
To read a related Bloomberg article, please click here:
Jim Sutliff
Greece has denied reports that they may be leaving the European Union. Greek Prime Minister George Papandreou has stated that the scenario hasn’t been discussed. The Greek economy has been a focus of EU officials and it remains in a deep recession. The restructuring of debt is anticipated by financial markets.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/05/07/us-greece-eurozone-idUSTRE74614Y20110507
Jim Sutliff
