Dow shot up 180, advancers over decliners 4-1 & NAZ gained 44. The MLP index was up fractionally to 444 & the REIT index recover 7+ to the 281s (but still 34 below the highs last month). Junk bond funds were mixed to higher after recent selling & Treasuries found buyers, taking the yield on the 10 year Treasury below 2.2%. Oil gained while gold pulled back once again.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Microsoft, a Dow stock, is teaming up with Best Buy to promote machines with its latest Windows 8 operating system as the software maker & electronics retailer try to combat the worst personal computer slump on record. MSFT is setting up its own Windows stores inside 500 Best Buy outlets in the US & 100 in Canada. Other MSFT products including the Windows Phone, Office software & Xbox gaming console will also be featured. Windows 8 has failed to reignite the ailing PC market, where shipments plummeted by their largest margin on record in Q1, according to research firm IDC. BBY posted an $81M in Q1 amid mounting online competition. As part of the agreement MSFT will train more than 1200 BBY salespeople to work in the dedicated Windows shops, which will occupy 1500-2200 square feet. “It’s the iOS experience, it’s the Android experience and we want a shopping environment that really shows what we think is the Windows experience,” Cris Capossela, MSFT’s chief marketing officer, said. MSFT slid 28¢ while BBY gained 68¢.
Microsft Teams With Best Buy to Promote Windows Computers
Photo: Bloomberg
The gov antitrust case over e-book pricing has reached a crucial stage as a key Apple executive takes the stand to try to convince a federal judge he didn't lead an illegal scheme with publishers to fix prices. Eddy Cue, called “the chief ringleader of the conspiracy” by the Justice Dept, was called to testify. Cue is the central negotiator in dealing with the owners of music, magazines, books, movies & television shows. His role will be highlighted as he testifies about leading talks with the 6 biggest US publishers in late 2009 & early 2010. The gov claims Cue prodded 5 of the 6 publishers to raise e-book prices & put pressure on Amazon (AMZN), the #1 e-book seller, to abandon its pricing model, in the weeks before AAPL entered the electronic book market with the introduction of the iPad. The company denies it conspired to fix prices & is fighting the case, which will decide without a jury. AAPL stock crawled up $4 to $436.
Apple’s Dealmaker Cue Is Key to Defense in U.S. E-Book Price-Fixing Trial
Photo: Bloomberg
Big Ben has repeatedly said a reduction in the $85B in monthly bond purchases wouldn't mean an end to record easing. But investors are behaving as if they don’t believe him. The yield on the 10-year Treasury note has risen to 2.17%, an almost 14-month high, from 1.63% on May 2 as investors bet the Federal Reserve will begin trimming bond buying. The surge is undermining his unprecedented effort to hold down borrowing costs & combat 7.6% unemployment. His message will follow the FOMC on Jun 19. The committee also plans to provide forecasts for economic growth, inflation, unemployment & interest rates. The yield on the 30-year bond to rose to 3.43% on Jun 11, the highest since Apr 2012. Investors interpret policy makers’ talk of reduced bond purchases as a signal the Fed will begin to increase its interest rate as soon as next year. They see a 47% chance the FED will raise the rate to at least 0.5% from zero to 0.25% by Dec 2014, according to prices for federal funds futures contracts.
Bernanke’s Tapering Talk Backfires Amid Bond Yield Surge
Stocks buyers piled into stocks all day. Maybe they feel that Big Ben won't be hard on them & send encouraging words about not disturbing the monthly bond buying program. So far its success in lowering unemployment has only been mixed as the economic recovery has been the slowest since the great depression. Economic fundamentals are not impressive whatever stock buyers say. GDP growth looks like it will be mediocre in Q2 & H2 is iffy at best. Europe & China are stumbling. This rally is dependent on Big Ben continuing to throw cheap money around. Dow is only off 72 this week as the bulls are trying to get control of the stock market. A lot is riding on the FOMC meeting next week.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.05% | |
U.S. 2-year |
0.31% | |
U.S. 10-year |
2.18% |
| CLN13.NYM | Crude Oil Jul 13 | 96.61 |  0.73 (0.8%) |
Microsoft, a Dow stock, is teaming up with Best Buy to promote machines with its latest Windows 8 operating system as the software maker & electronics retailer try to combat the worst personal computer slump on record. MSFT is setting up its own Windows stores inside 500 Best Buy outlets in the US & 100 in Canada. Other MSFT products including the Windows Phone, Office software & Xbox gaming console will also be featured. Windows 8 has failed to reignite the ailing PC market, where shipments plummeted by their largest margin on record in Q1, according to research firm IDC. BBY posted an $81M in Q1 amid mounting online competition. As part of the agreement MSFT will train more than 1200 BBY salespeople to work in the dedicated Windows shops, which will occupy 1500-2200 square feet. “It’s the iOS experience, it’s the Android experience and we want a shopping environment that really shows what we think is the Windows experience,” Cris Capossela, MSFT’s chief marketing officer, said. MSFT slid 28¢ while BBY gained 68¢.
Microsft Teams With Best Buy to Promote Windows Computers
Microsoft (MSFT)
Best Buy (BBY)
Photo: Bloomberg
The gov antitrust case over e-book pricing has reached a crucial stage as a key Apple executive takes the stand to try to convince a federal judge he didn't lead an illegal scheme with publishers to fix prices. Eddy Cue, called “the chief ringleader of the conspiracy” by the Justice Dept, was called to testify. Cue is the central negotiator in dealing with the owners of music, magazines, books, movies & television shows. His role will be highlighted as he testifies about leading talks with the 6 biggest US publishers in late 2009 & early 2010. The gov claims Cue prodded 5 of the 6 publishers to raise e-book prices & put pressure on Amazon (AMZN), the #1 e-book seller, to abandon its pricing model, in the weeks before AAPL entered the electronic book market with the introduction of the iPad. The company denies it conspired to fix prices & is fighting the case, which will decide without a jury. AAPL stock crawled up $4 to $436.
Apple’s Dealmaker Cue Is Key to Defense in U.S. E-Book Price-Fixing Trial
Apple (AAPL)
Photo: Bloomberg
Big Ben has repeatedly said a reduction in the $85B in monthly bond purchases wouldn't mean an end to record easing. But investors are behaving as if they don’t believe him. The yield on the 10-year Treasury note has risen to 2.17%, an almost 14-month high, from 1.63% on May 2 as investors bet the Federal Reserve will begin trimming bond buying. The surge is undermining his unprecedented effort to hold down borrowing costs & combat 7.6% unemployment. His message will follow the FOMC on Jun 19. The committee also plans to provide forecasts for economic growth, inflation, unemployment & interest rates. The yield on the 30-year bond to rose to 3.43% on Jun 11, the highest since Apr 2012. Investors interpret policy makers’ talk of reduced bond purchases as a signal the Fed will begin to increase its interest rate as soon as next year. They see a 47% chance the FED will raise the rate to at least 0.5% from zero to 0.25% by Dec 2014, according to prices for federal funds futures contracts.
Bernanke’s Tapering Talk Backfires Amid Bond Yield Surge
Stocks buyers piled into stocks all day. Maybe they feel that Big Ben won't be hard on them & send encouraging words about not disturbing the monthly bond buying program. So far its success in lowering unemployment has only been mixed as the economic recovery has been the slowest since the great depression. Economic fundamentals are not impressive whatever stock buyers say. GDP growth looks like it will be mediocre in Q2 & H2 is iffy at best. Europe & China are stumbling. This rally is dependent on Big Ben continuing to throw cheap money around. Dow is only off 72 this week as the bulls are trying to get control of the stock market. A lot is riding on the FOMC meeting next week.
Dow Jones Industrials
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