The Greek crisis pushed the 10-year Treasury note down to 2.92 percent, the lowest since November, from 2.97 percent late Wednesday. Bond yields fall when prices rise.
After LinkedIn's initial IPO success, Internet Radio Station Pandora experienced a disastrous initial offering today falling 24% from its starting price.
The top financial news for today were:
1) Home building, jobs reports push Dow higher-From the AP
Better-than-expected reports on home building and jobs pushed two of the three major stock indexes higher Thursday. The broader market ended mixed.
The pace of new home construction quickened last month and the number of people who applied for unemployment benefits fell last week to 414,000, more of an improvement than economists expected.
Weekly applications for unemployment have been over 400,000 since April, a rate that suggests job growth is still slow.
Worries that Greece's debt troubles could spread continued to weigh on financial markets. The dollar and U.S government bonds rose as traders moved money into safer investments.
The Dow Jones industrial average gained 64.25 points, or 0.5 percent, to close at 11,961.52. The Dow is now slightly higher for the week.
The S&P 500 rose 2.22, or 0.2 percent, to 1,267.64. The Nasdaq composite lost 7.76, or 0.3 percent, to 2,623.70. The two are less than 1 percent lower this week.
2) The yield on the 10-year Treasury note fell to 2.92 percent-From the Wall Street Journal
Despite this morning’s slightly rosier than expected economic data and the anvil of the debt-ceiling debate still hanging over the market, the yield on the 10-year Treasury note is at its lowest level of the year this morning.
The 10-year yield was recently at 2.91%, and briefly dipped this morning below 2.9%, the lowest since last November. We’re still a fair ways from October’s lows of 2.38%, but having a 2-handle on the 10-year note is pretty astounding. It’s pricing in a far more dire economic outlook than the stock market seems to be.
The 2-year note hit a record low of just 0.3% earlier, though it has risen back to 0.36% recently.
The release of Philly Fed data could be a big moment for the Treasury market. If the data are better than expected, the 10-year could sell off a bit. If worse than expected, look out below. And lingering worries about a Lehman-like Greek blowup will probably keep people interested in safe-haven Treasurys no matter what happens.
3) Pandora's stock retreats to below IPO price-From the AP
Buyer's remorse already may be setting in for some investors in Internet radio station Pandora Media Inc.
After intense demand drove up the price for Pandora's initial public offering of stock, the shares lost nearly a quarter of their value their second day of trading.
Thursday's harsh reversal of fortune left Pandora's stock below its IPO price of $16. The shares fell $4.16, or 24 percent, to close at $13.26.
The downturn indicates the earlier euphoria about Pandora Media may have been misguided. The excitement enabled Pandora Media's IPO to sell for twice as much as an $8 target price set two weeks ago.
The misgivings are bad news for investors who paid as much as $26 on Pandora's first day of trading.
But the circumspection is encouraging for those worried about an investment bubble forming around promising Internet services that have attracted large audiences.
Quote of the Day from Dave Ramsey.com:
The truth is that there is nothing noble in being superior to somebody else. The only real nobility is in being superior to your former self. — Whitney Young
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