(Bond Market Wrapup for October 18th, 2012) – Treasuries closed nearly flat after robust regional manufacturing data was tempered by an unexpected rise in jobless claims. Yields came off early highs after Federal Reserve Bank of Philadelphia reported manufacturing rebounded in October and the Conference Board’s index of economic indicators rose 0.6 percent in September. However, a Labor Department showed initial jobless claims jumped 46,000 to 388,000, reversing a previous seasonal quirk that showed unemployment plummeted to a four-year low.
The yield on the benchmark 10-year notes gained one basis point, or 0.01 percentage point, to 1.83 percent, after rising 16 basis points in the past 48 hours. Yield on 30-year Treasury bonds were little changed at 3 percent in late afternoon trade, New York time.
Bond funds fell with the iShares Barclays 20 Year Treasury Bond ETF (TLT) losing 74 cents, or 0.61 percent, to end at $120.11, while the Vanguard Total Bond Market ETF (BND) shed 4 cents, or 0.05 percent, to close at $84.55.
US stocks slipped Thursday, falling for the first time in three days as Google Inc missed earnings target indicating trouble for the tech sector and a weak jobs report offset upbeat manufacturing data.
The Dow Jones Industrial Average (DJIA) lost 8.06 points, or 0.06 percent, to finish at 13,548.94, snapping its four-day winning streak. Breadth within the 30-component index turned positive with 18 stocks closing higher and Proctor and Gamble (PG) finishing unchanged.
Travelers Cos (TRV) was the biggest percentage gainer in the Dow after the insurer’s quarterly earnings more than doubled that beat estimates due to lower losses from natural disasters. International Business Machines (IBM) continued to slide after the technology services provider reported lower than expected sales Tuesday.
The S&P 500 Index (SPX) fell 3.57 points, or 0.2 percent, to 1457.34 with technology hitting the ground hardest and telecommunications gaining the most among its 10 business groups.
The NASDAQ Composite (COMP) tumbled 31.25 points, or 1.0 percent, to close at 3072.87, led by technology giant Google (GOOG). Shares fell eight percent after third quarter results were accidentally released early with Google blaming the financial printer RR Donnelley & Sons (RRD) for the mishap, and profit and sales both missed targets.
Decliners just managed to pull ahead of advancers on the NYSE.
Oil prices for November delivery fell 2 cents to close at $92.10 a barrel.
Gold futures for December delivery slipped $8.30 to close at $1,744.70 an ounce.