Treasuries seesaw as traders question pace of economic recovery
General Electric led gainers on Dow after the conglomerate reported a fourth-quarter profit that topped Wall Street forecasts.
January 21st, 2011
10:22 PM ET

Treasuries seesaw as traders question pace of economic recovery

A look at today's business news headlines:

Dow boosted by earnings, tech shares lag 
Stocks closed mixed Friday, with technology shares lagging the broader market, as investors weighed strong earnings from General Electric against a quarterly loss from Bank of America.

The Dow Jones industrial average rose 49 points, or 0.4%, to close at 11,872, the highest level since June 2008. The S&P 500 added 3 points, or 0.2%, but the tech-heavy Nasdaq fell 15 points, or 0.5%.

For the week, the Dow gained 1.2%, while the S&P was flat. The Nasdaq lost about 1.7% over the last five trading days.

General Electric led gainers on the Dow after the conglomerate reported a fourth-quarter profit that topped Wall Street forecasts, sending its stock up 7%. Energy stocks Exxon and Chevron were also strong after an industry group suggested oil prices will continue to rise in 2011.

Treasuries: 'Trapped' since December 
Treasuries have been seesawing in a tight range since the start of the year, as traders question the pace of the economic recovery.

While things have been looking up, the bond market already priced in signs of improvement at the end of 2010, and traders are now looking for something more to push it one way or the other.

"People are taking a wait-and-see attitude about the degree of intensity of the recovery, with everyone trying to figure out if we're going to have lackluster growth or robust growth," said Bill Larkin, portfolio manager at Cabot Money Management.

"The market is basically saying QE2 is going to dissipate mid-year, and housing and employment are two wild cards - with Europe is in there too."

Given that uncertainty, the yield on the 10-year note has been stuck bouncing between 3.3% and 3.5% since the end of 2010, said Larkin.

"Treasuries have been trapped since the beginning of December and that's
likely to continue until we get some good news on the employment side," Larkin said. "Once we do, that will help us break into a new range and yields will likely go higher."

- reporters Blake Ellis and Ben Rooney contributed to this report.

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Filed under: Economy
soundoff (13 Responses)
  1. Clarice Sperry

    The Keith Olbermann show is one that I have always looked forward to. His leaving is disappointing, to say the least. It will leave a big hole in my every-night viewing. I think there will be many who will also be disappointed in this loss.

    January 21, 2011 at 10:36 pm | Report abuse |
    • Carole Scarborough

      Too bad that the networks don't care more about ratings than their viewers.

      January 21, 2011 at 11:10 pm | Report abuse |
  2. Robert E. Lee


    You are so envious of Bill O'Reilly & Genn Beck.

    January 21, 2011 at 11:42 pm | Report abuse |
  3. Cesar

    Keith Olbermann YOU ARE THE BEST PERSON IN THE WORLD!!!! Glen Beck is so envious of you.

    January 22, 2011 at 6:23 am | Report abuse |
  4. Philip

    @Cesar...hey there big guy. You really like Kieth Olberman? I've seen his "news" program a few times. It seemed to me that his sensational style was more of a distraction from the news than a tool for delivering it. Why does TV news now need to be so flashy and entertaining? Was Walter Cronkite's style (or lack thereof) insufficient? It's like an airborne disease I reckon. Even weather reporters have it now. Glamorous weather and Sensational news. What next...'Fast Action Bingo' at 6:00? (5 o'clock on FOX)

    January 22, 2011 at 8:01 am | Report abuse |
  5. Cesar

    @Hey Philip. Been a long time. Keith is ok, but in my opinion Anderson Cooper and Bill O are the best. I wrote that post to get on Robert E. Lee's nerve, but it didn't work.

    January 22, 2011 at 8:12 am | Report abuse |
  6. Cesar

    And that concludes today's news. Now viewers, please take out your bingo tabs that you got from your local participating store and get ready for "Fast Action Bingo! B2-Which country owns 7% of us?"

    January 22, 2011 at 8:19 am | Report abuse |
  7. Pick me

    ooooh ooooh oooooh umm uh china?

    January 22, 2011 at 5:21 pm | Report abuse |
  8. Cesar

    We have a winner! Pick me, you have just won a 45 inch screen television set with a speaker system, and a $2,500 cash prize. Congratulations and thanks for playing Fast Action Bingo. Stay tuned for your local news.

    January 22, 2011 at 6:28 pm | Report abuse |

    ge is terrible, their appliances are junk, they make them to last 3-4 years then blow up.

    i buy kenmore and whirlpool now. i use to like maytag but the sold their souls to satan and moved to china.

    January 22, 2011 at 10:49 pm | Report abuse |
  10. Cesar

    LisaMartin12, where are you? I need auto insurance.

    January 23, 2011 at 5:02 am | Report abuse |
  11. Philip

    @Cesar...what country owns 7% of US? My guess would be China. But in case China owns more than 7%, I'll guess the Caymen Islands. The US owes them about 1/3 as much as is owed to China, whom the uS owes over a trillion.

    January 23, 2011 at 8:04 am | Report abuse |
  12. Cesar

    @Philip,China according to a CNN aerticle. Sleepy.

    January 23, 2011 at 2:27 pm | Report abuse |