Market Update Report 5/10/2013

May 10, 2013
The KUIK Market Update for Friday, May 10:
 
Markets are mixed.
 
Index Direction Change Units Last Time Change  
Dow Down                    (21) points           15,062 7:55 AM    
S&P500 Unchanged 0.00% percent             1,627               0.05 points
Nasdaq Composite Up 0.30% percent             3,419              10.30 points
30 Year Treasury Up                       9 Basis Points               3.08 Annual Yield    
 
Federal Reserve Chairman Ben Bernanke on Friday said the U.S. central bank is closely monitoring the risks from excessive risk-taking with interest rates so low. Bernanke identified “reaching for yield” as well as the threat of a run in money-market funds and the possibility that short-term money markets could dry up in a crisis.
 
Treasury Secretary Jack Lew said in an interview that the debt ceiling will not be hit until September, though Congress shouldn’t relax. Ahead of a meeting in London of Group of Seven central bank governors and finance ministers, Lew said the U.S. economy is growing, and while encouraging, this is “not sufficient”.  He is especially worried over the gap between long and short-term unemployment.
 
Thanks to a strengthening housing market, federally chartered mortgage buyer Fannie Mae saw record pre-tax income in the first quarter and plans to pay the U.S. Treasury Department $59.4 billion by the end of next month, according to financial results announced yesterday.  Including June’s payment, Fannie Mae will have sent Treasury a total $95 billion in cash dividends since the firm was taken into conservatorship in 2008.  It has drawn a total of $116.1 billion in aid, but hasn’t received any funds from the Treasury since the first quarter of 2012.
 
 
 
Serving the West Side first, I am Bill Roller of BR Capital for AM 1360 KUIK.
 
http://www.marketwatch.com/story/bernanke-fed-monitoring-reaching-for-yield-2013-05-10
http://www.marketwatch.com/story/treasurys-lew-debt-ceiling-safe-until-sept-2013-05-10
http://www.marketwatch.com/story/fannie-mae-reports-record-profit-2013-05-09
 
 
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