The Herald Bulletin

Morning Update

Nation & World

August 19, 2013

Stocks edge higher, led by technology

NEW YORK —  U.S. stocks edged higher in early trading early Monday, led by technology companies, but many investors continued to focus on the quick rise in bond yields.

The Dow Jones industrial average was up 21 points, or 0.1 percent, to 15,102. The Standard & Poor's 500 index rose 3 points, or 0.2 percent, to 1659. The technology-focused Nasdaq composite index rose 17 points, or 0.5 percent, to 3,651.

Intel led the Dow higher after the stock was upgraded by the investment bank PiperJaffray, which raised its rating on the chipmaker, predicting strong sales for Intel's chips for tablet computers and mobile devices. Intel rose 70 cents, or 3 percent, to $22.63.

Other major tech stocks also rose. Apple rose $8.43, or 1.7 percent, to $510.92 and Google rose $13.84, or 1.6 percent, to $870.60.

The main focus for many investors was the rapid rise in bond yields. The yield on the benchmark U.S. 10-year Treasury note rose to 2.86 percent from 2.83 percent Friday. A week ago it was 2.62 percent.

The quick rise in bond yields has worried some investors because it leads to higher interest rates and borrowing costs for many kinds of loans, including home mortgages and corporate loans.

Some investors expect the 10-year note could rise above the psychologically important 3 percent mark as early as month's end.

"I do think we're not too far away from that point in time where this heavy increase in bond yields is going to start impacting the (stock) markets," said Doug Peebles, chief investment officer of AllianceBernstein Fixed Income.

The Dow is coming off its worst week this year. The benchmark index fell 2.2 percent last week and the S&P 500 lost 2.1 percent. Investors have been focused on the possibility that the Federal Reserve may pare back its massive bond-buying program as early as next month.

On Wednesday the Federal Reserve will publish the minutes of its July policy meeting, and on Thursday the Fed starts its annual conference in Jackson Hole, Wyo.

A rout for retailers continued Monday. Saks, the luxury retailer, reported a wider loss two weeks after agreeing to be bought by the Canadian retailer Hudson's Bay, the parent company of Lord & Taylor, for $2.4 billion.

The retail sector got off to a dismal start last week after Wal-Mart, Macy's and Nordstrom each cut their sales outlooks for the year. This week, J.C. Penney, Target, the Gap, Home Depot, Sears and others report quarterly earnings. The retail industry is often closely watched by investors because consumer spending makes up a large chunk of the U.S. economy.

In other news, Zillow said it was buying New York-focused real estate website StreetEasy for $50 million. Zillow dropped $4.57, or 5 percent, to $87.03.

 

1
Text Only
Nation & World
  • news_ukraine.jpg US weighing military exercises in Eastern Europe

    The United States is considering deploying about 150 soldiers for military exercises to begin in Poland and Estonia in the next few weeks, a Western official said Saturday.

    April 20, 2014 1 Photo

  • news_skoreaferry.jpg 10 more bodies found inside sunken ferry by divers

    Divers recovered 13 bodies from inside a ferry that sank off South Korea, pushing the confirmed death toll to 46, officials said Sunday. The discovery came after rescuers finally gained access to the inside of the ship following three days of failure and frustration caused by strong currents and bad visibility due to inclement weather.

    April 20, 2014 1 Photo

  • spt_flanagan.jpg Hometown favorite wants to win Boston Marathon, for Boston

    Shalane Flanagan grew up in nearby Marblehead with a reverence for the Boston Marathon and dreamed, like many locals and foreign runners alike, that she would win the race someday. Her goal has changed now.

    April 19, 2014 1 Photo

  • news_felumlee.jpg Ohio couple married 70 years die 15 hours apart

    A couple who held hands at breakfast every morning even after 70 years of marriage have died 15 hours apart.

    April 19, 2014 1 Photo

  • news_missingboymass.jpg Body found by highway is missing Massachusetts boy

    The body of a small boy apparently cast off the side of a highway has been confirmed as a missing 5-year-old, authorities said Saturday.

    April 19, 2014 1 Photo

  • news_mounteverest.jpg 13th body pulled from snow in Everest avalanche

    Search teams recovered a 13th body Saturday from the snow and ice covering a dangerous climbing pass on Mount Everest, where an avalanche a day earlier swept over a group of Sherpa guides in the deadliest disaster on the world's highest peak.

    April 19, 2014 1 Photo

  • news_malaysiaairlines.jpg Sub search for missing jet to be finished within a week

    A robotic submarine looking for the missing Malaysia Airlines jet is expected to finish searching a patch of the Indian Ocean seabed within a week after so far coming up empty, and the search area may be expanded after that, officials said Saturday.

    April 19, 2014 1 Photo

  • news_bostonofficerslain.jpg MIT honors officer slain after Boston Marathon bombings

    Like many other youngsters, Sean Collier wanted to be a police officer. Unlike most, he brought that dream to life — and then died doing it, becoming a central character in the gripping hunt for the Boston Marathon bombing suspects.

    April 19, 2014 1 Photo

  • news_eyewitness.jpg Eyewitness testimony no longer a gold standard

    The American legal system offers few moments as dramatic as an eyewitness to a crime pointing his finger across a crowded courtroom at a defendant. The problem is that decades of studies show eyewitness testimony is right only about half the time.

    April 19, 2014 1 Photo

  • FEA - HB0121 - flu - 05 Second wave of milder flu hitting Northeast

    Months ago, the flu season seemed to be winding down. But health officials on Friday reported widespread flu-like illnesses in six states.

    April 18, 2014 1 Photo

More Resources from The Herald Bulletin
AP Video
Raw: More Than 100,000 Gather for Easter Sunday Raw: Greeks Celebrate Easter With "Rocket War" Police Question Captain, Crew on Ferry Disaster Raw: Orthodox Christians Observe Easter Rite Ceremony Marks 19th Anniversary of OKC Bombing Raw: Four French Journalists Freed From Syria Raw: Massive 7.2 Earthquake Rocks Mexico Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Deadly Avalanche Sweeps Slopes of Mount Everest
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium