Brian Edmonds Comments: Microsoft Leads Wall Street Higher
July 13, 2010, The Wall Street Journal
US stocks edged up today, led by technology stocks, including Microsoft and SanDisk, following ratings upgrades from analysts.
But jitters over upcoming second-quarter earnings reports and disappointing import data from China weighed on Alcoa and other materials stocks. The Dow Jones Industrial Average climbed 18.24 points, or 0.18 per cent, to 10216.27, the measure's fifth-straight session in the black. This marks the Dow's longest winning streak since a six-day run that ended April 26.
In the bond markets, US Treasury sold three-year notes for the lowest yield today, yet prices still slipped as investors set up for the government's remaining 10- and 30-year auctions this week.
The government's sale of $US35bn in new three-year notes drew over three times that amount in bids but, despite the record low yield, the auction disappointed the market which had expected even lower yields.
The new notes yielded 1.055 per cent, the lowest yield on record for three-year sales, traders said. Ahead of the sale, the market had seen the yield at 1.046 per cent.
"The auction was not quite as well as received as you would have thought, said Brian Edmonds, head of interest rates at Cantor Fitzgerald in New York, with some investors staying away given ultra low Treasury yields. "It doesn't seem super-attractive to me to own three-years at these levels," said Mr Edmonds.
In late New York trading, most Treasury prices were lower. The price of the three-year note was off 1/32 to yield 1.027 per cent, the two-year note was down 1/32 to yield 0.649 per cent. The 10-year note was flat to yield 3.057 per cent. The 30-year Treasury was off by 7/32 to yield 4.053 per cent.
