April 28th, 2010
08:03 PM ET

Dow gains, treasurys slip while oil rises

 A look at highlights from the day's business news:

Dow back above 11,000

The Dow gained Wednesday after the Federal Reserve said that economic activity is picking up, and that it will hold a key short-term interest rate steady for an extended period of time.       

The broader market was mixed as investors considered European debt issues and a batch of quarterly earnings reports.

The Dow Jones industrial average gained 53 points, or 0.5 percent, reclaiming the 11,000 level it lost in the previous day's selloff. The 11,000 level has psychological meaning, but is not a key technical level for traders.

The S&P 500 index added 7 points, or 0.7 percent, closing above 1,185, a key support level. The Nasdaq composite was barely changed.

Dollar gives up gains after Fed release

The dollar gave up gains against the euro Wednesday after the Federal Reserve left interest rates unchanged near zero and said economic activity is beginning to improve.

What prices are doing: The dollar fell 0.2 percent versus the euro to $1.3201. Earlier, the shared currency fell to $1.3114 - the lowest level since late April 2009.

The dollar gained 0.4 percent against the British pound to trade at $1.5191. Against the Japanese yen, the dollar was up 1 percent to ¥94.09.      

What's moving the market: The euro came under pressure in earlier trading after Standard and Poor's downgraded the sovereign debt ratings of Spain to "AA" from "AA+" and placed the country on negative outlook.

Treasurys slip after Fed announcement

Treasurys fell Wednesday, after a government auction drew moderate demand and the Federal Reserve announced it will leave interest rates unchanged for an "extended period."

What prices are doing: The benchmark 10-year note fell 17/32 to 98-29/32, pushing the yield up to 3.76 percent. Bond prices and yields move in opposite directions.

The 30-year bond slipped 23/32 to 100, and its yield rose to 4.63 percent. The 2-year note shed 5/32 to 99-30/32 with a 1.04 percent yield. The 5-year note was down 11/32 to 100 with a yield of 2.5 percent.

What's moving the market: The Treasury Department's auction of $42 billion in 5-year notes Wednesday drew healthy demand, with investors submitting $116 billion in bids. The government is also set to auction $32 billion of 7-year notes on Thursday.

Oil rises on Fed rate decision

Oil prices turned higher Wednesday after the Fed announced it would keep rates low, overshadowing Greek woes and a mixed inventory report.       

What prices are doing: Crude prices rose 78 cents to settle at $83.22 a barrel.

Prices plummeted Tuesday after Greek and Portuguese debt was downgraded. Crude is essentially unchanged in the past week, but up 63 percent from this time last year.       

What's moving the market: Prices began the trading day lower amid concerns over debt problems in Europe and slack demand, but turned after the Fed's rate decision.

CNNMoney.com reporters Chavon Sutton, Annalyn Censky, Ben Rooney and Alexandra Twin contributed to this report.

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Filed under: Economy
soundoff (2 Responses)
  1. Stentor

    Damn speculators are driving up the cost of oil for no real reason other than greed. Demand is down more than 2 million barrels per day from last year, supplies are at their highest point in years, OPEC says it is not going to cut production, and yet prices continue to rise. Why? Demand reform, this is thievery, a massive wealth transfer from all of our pockets to the greedy oil speculators!

    April 28, 2010 at 9:49 pm | Report abuse |
  2. kenneth thornes

    Health reform......financial reform............people who complain about their taxes going up.......with the cost of gas............what i spent in gas over 8 years starting in april 2001, shortly after bush got elected-–over 1.50 a gallon----i kept track of all gas i bought from 4-2001 to 12-2008 and what i spent over 1.50 a gallon totaled 12081? i have a commute of 82 miles round trip to work every day.............hell, OBAMA-–DO SOMETHING ABOUT GAS PRICES..........put your damn foot down and put the smack down on this shit. gas prices make a tax increase desirable. OBAMA, quit being week and END this gas bullshit, put the regulation back in place that BUSH-HOLE got rid of. EXEC DECIS it.

    April 28, 2010 at 11:47 pm | Report abuse |