Bond Funds Lagged In Feb., Especially Treasuries and Stocks Close Well Off Highs
Treasury funds lagged every fixed-income category last month except for TIPS funds. In most cases, Treasuries trailed by a lot. The main trouble for Treasuries was twofold. On the one hand, investors were increasingly concerned that taxables in general had gotten ahead of themselves.
“Last year was massive for categories like investment-grade corporates, mortgage-backed securities, asset-backed securities and so on,” said Charles Burge, a manager of $321 million AIM Core Bond Fund. “But recently as people looked at economic data, more and more investors began to wonder if this group had gotten ahead of the data. Some thought it was time for this group to take a breather.”
A second investor worry was the huge amount of debt being issued, pushing the U.S. government deeper into the red.
Investor concerns about European debt in general and Greek debt in particular fueled a late-February flight to safety. That boosted Treasuries and U.S. [Read the full article]
The Nasdaq pared a 0.9% gain to 0.4%. But bellwether Apple (AAPL) reversed early losses and rose 2%. Baidu (BIDU) and Research In Motion (RIMM) also edged up.
Meanwhile, the S&P 500 rose 0.2% and the Dow 0.1%. The NYSE composite squeezed out a fractional gain. Turnover jumped sharply across the board.
Airline issues rose after UAL (UAUA) said its passenger revenue climbed 10.5% in January, more than three times the industry average. Shares climbed 4%.
Copa Holdings (CPA) rallied nearly 5% to a two-month high in more than twice its average volume. The stock cleared a 56.43 buy point from a cup-with-handle base.
Elsewhere, Companhia Siderurgica Nacional (SID) climbed 4% in more than double its average volume. The stock nearly touched its Oct. 23 high. The Brazilian steelmaker is planning to take its Casa de Pedra iron ore mine unit public by the end of June. It’s also planning IPOs for its other units.
Telestone Technologies (TSTC) turned a near 8% gain into a 7% loss. [Read the full article]
The company unveiled its new and powerful CRS-3 router. The product delivers 12x the net traffic capacity of its competitors, which translates into every person in China being able to make a video call simultaneously and the ability to stream every single movie ever made, in less than four minutes time according to some of today’s PR blitz.
The highly anticipated announcement saw an initial sell the news or profit-taking style response of about two percent intraday. Given CSCO very uncharacteristic bee-line price run of about 10% over the past two weeks and shares now outside their upper and expanding Bollinger Band, the reaction certainly seemed unsurprising to this market strategist. [Read the full article]