Treasuries rise on Fed pledge after three days, Stocks Up

Treasuries pared some of previous losses after yields on the 10-year benchmark notes dropped to the lowest level in two months as higher-than-expected jobless claims brought rumors of QE3 back to the forefront.  The yield on 10-year Treasuries settled at 1.94 percent after touching a low of 1.93 percent in intraday trading. The yield on 30-year treasury bonds dropped 3 basis points to 3.12 percent as the 1-year and 30-year spread widened to 118 basis points or 1.18 percent.

The Vanguard Total Bond Market ETF (BND) rose 0.11 point, or 0.13 percent, while the iShares Barclays 20 Year Treasury Bond Fund (TLT) rose 0.70 points, or 0.60 percent. The ETF has returned 25.32 percent over the last 12 months.

US stocks continued with their winning streak for the third straight day Thursday following stronger-than-estimated housing data that overshadowed worries over a weak job market and mixed corporate earnings reading in the first quarter. The S&P 500 breached the 1,400 mark for the first time in three weeks after Citrix Systems raised their outlook for 2012.

The Dow Jones Industrial Average (DJIA) surged 113.90 points, or 0.9 percent, to 13,204.62, after Wall-Mart (WMT) rebounded on the blue-chip index following its eight percent decline this week due to a bribery allegation
in Mexico. Exxon Mobil (XOM) was the biggest loser on Dow after profits came in lower-than-estimated.

The S&P 500 Index (SPX) added 9.29 points, or 0.7 percent, to settle at 1399.98, after hitting an intraday high of 1,402.09, topping the 14k mark for the first time since April 5. Citrix Systems Inc. (CTXS) jumped more than 12 percent after the software products company issued earnings guidance that beat street estimates. Telecom and consumer discretionary like home builders advanced the most while health care and commodities retreated among the 10 industry groups.

The NASDAQ Composite Index (COMP) added 20.98 points, or 0.7 percent, to close at 3050.61, up 1.7 percent over last week’s close.

Advancers outpaced decliners by 2-to-1 on the NYSE.

Crude for June delivery gained 43 cents to close at $104.55 a barrel.

Gold futures for June delivery jumped $18.20 to $1,660.50 an ounce.

 

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