Treasuries Prices Fall & The Dow Hits High On Greek News

The Dow breached 13,000 on an intra-day basis, but closed at 12,966 – rising 15 points on the day. The Dow touched its highest level since late 2008. The S&P was nominally higher and the Nasdaq closed a tiny bit down. The market rose significantly in the beginning on news that the powers that be in Europe had approved the $170 billion bailout package for Greece.

The Treasury market reacted strongly on the news. The yield on the 10-year treasury rose to a high of 2.08%, closing at 2.05% – 0.05% higher. Breaking and closing above a 2.0% yield is psychologically important for the market. One market commentator on Twitter mentioned that the last time Greek got a bailout, the 10 year was around 2.4%. After the bailout yields climbed and spent several months at over 3.0%.

As one would expect, the two largest bond ETFs, BND and AGG, were both down (less than 0.15%). However, the ETF that tracks long-term treasury prices TLT, lost 1.1% of its value.

Highlights Form The Equity market:

Apple (AAPL) halo affect does not help JC Penney (JCP). For the last several months, the former head of Apples’ retail efforts has taken the helm of JC Penney. However, this did not stop one of the major credit agencies from downgrading JC Penney’s bond to junk status, triggering selling of its stock.

Wal-Mart (WMT) released earnings today and disappointed the market place. Its Shares fell 4% as a result. If the economy is in a recovery is that good for Wal-Mart Stores? Will people buy more from the retailer or will they shop at higher end stores?

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