Wednesday, October 22, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

S&P 500 index holds close to record level

By
From page B7 | May 29, 2014 |

NEW YORK — Stocks edged lower for the first time in five days Wednesday, but the real action was in the bond market.

The yield on the 10-year Treasury note fell to its lowest in 11 months as investors continued to put money into the bond market, extending a rally that has taken many investors and analysts by surprise. Most market participants had expected yields to climb this year, and bond prices to fall, as the Federal Reserve reduced its purchases of bonds and the economy improved.

Instead, the opposite has happened. While stocks have ground out modest gains this year, pushing major indexes to record levels, bond prices have surged. Even evidence that the economy is strengthening after a winter lull has failed to slow the rally.

“The bond market has been incredibly resilient,” said Russ Koesterich, chief investment strategist with BlackRock. “Even as stocks have pushed to new highs, and you’ve had generally positive economic data, bonds have remained well bid.”

The S&P 500 fell 2.13 points, or 0.1 percent, to 1,909.78. The index closed at a record 1,911.11 the day before.

The Dow Jones industrial average dropped 42.32 points, or 0.3 percent, to 16,633.18. The Nasdaq composite fell 11.99 points, or 0.3 percent, to 4,225.07.

As bonds rallied, investors bid up the prices of safe and steady stocks like utilities and phone companies that pay rich dividends, giving a lift to major stock indexes. Utility and phone company stocks were the best performers in the S&P 500. The utility sector is the year’s best performer of the 10 sectors that make up the S&P 500, gaining 10.7 percent since the start of 2014.

In other stock trading, Dollar General led consumer discretionary stocks lower after analysts at Deutsche Bank cut their forecast for the company’s earnings, saying that it faces tough pricing competition from rival retailers, including Walmart and Target. The retailer’s stock dropped $1.70, or 3 percent, to $54.60.

The stock market has edged up to record levels against a backdrop of reports that have shown the U.S. economy is gradually strengthening after a winter slump. The S&P 500 closed above 1,900 for the first time on Friday.

But despite the encouraging economic backdrop, bonds have continued to rally.

On Wednesday, the yield on the 10-year Treasury note fell to 2.44 percent from 2.52 percent late Tuesday. The yield, which started the year at 3 percent, is the lowest it’s been in 11 months.

Speculation that the European Central Bank will take further steps to stimulate the region’s economy have boosted the appeal of U.S. Treasury notes compared to bonds issued by the European governments. The yield on the 10-year German government bond is 1.34 percent, and French bonds with a similar maturity yield 1.72 percent.

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Logue wins US Chamber of Commerce support

By Ryan McCarthy | From Page: A1

 
Crime key topic again at Fairfield candidates night

By Ryan McCarthy | From Page: A1, 35 Comments | Gallery

 
Dixon corn maze breaks own world record

By Jess Sullivan | From Page: A2, 2 Comments | Gallery

Families Helping Families preps for holidays

By Amy Maginnis-Honey | From Page: A3

 
Charity Tree Auction application deadline nears

By Amy Maginnis-Honey | From Page: A3

Tots can trick-or-treat at Solano Town Center

By Amy Maginnis-Honey | From Page: A3

 
Car washes raising money to fight breast cancer

By Susan Hiland | From Page: A3

Fairfield Police Department promotes 2, honors 1

By Ryan McCarthy | From Page: A3 | Gallery

 
 
2 new challenges part of 2014 Solano Turkey Trot

By Amy Maginnis-Honey | From Page: A4 | Gallery

 
PAL center seeks volunteers

By Jess Sullivan | From Page: A4, 1 Comment

Suisun council splits on housing element changes

By Ian Thompson | From Page: A5

 
Solano names new First 5 director

By Ian Thompson | From Page: A6

 
$1.4M land sale by Fairfield gets OK

By Ryan McCarthy | From Page: A6

Action, thriller movies headed to box office

By Amy Maginnis-Honey | From Page: A7

 
Fairfield police log: Oct. 19, 2014

By Susan Hiland | From Page: A12

Fairfield police log: Oct. 18, 2014

By Susan Hiland | From Page: A12

 
Suisun City police log: Oct. 20, 2014

By Susan Hiland | From Page: A12

Suisun City police log: Oct. 19, 2014

By Susan Hiland | From Page: A12

 
Suisun City police log: Oct. 18, 2014

By Susan Hiland | From Page: A12

Fairfield police log: Oct. 20, 2014

By Susan Hiland | From Page: A12

 
.

US / World

FBI: Denver girls may have tried to join jihadis

By The Associated Press | From Page: A1

 
IS fighters seize weapons cache meant for Kurds

By The Associated Press | From Page: A1

Assad pursues withering campaign against rebels

By The Associated Press | From Page: A1 | Gallery

 
7 arrested in Oakland raid on Black Muslim Temple

By The Associated Press | From Page: A6

Stinky seaweed piling up at upscale Laguna Beach

By The Associated Press | From Page: A6

 
Golden Gate Bridge officials float sidewalk toll

By The Associated Press | From Page: A8

5 Jonestown victims buried in California

By The Associated Press | From Page: A8 | Gallery

 
New rules adopted in hopes of spurring home loans

By The Associated Press | From Page: B8

California man goes missing during road trip

By The Associated Press | From Page: A8, 1 Comment

 
2nd guilty plea in California tainted beef case

By The Associated Press | From Page: A8

Former Washington Post editor Ben Bradlee dies

By The Associated Press | From Page: A9

 
Pakistani Nobel laureate honored in Philadelphia

By The Associated Press | From Page: A9

Cadaver dog searches in suspected serial killings

By The Associated Press | From Page: A10

 
Schools scoured in search for ambush suspect

By The Associated Press | From Page: A10

AP-GfK Poll: Most expect GOP victory in November

By The Associated Press | From Page: A10 | Gallery

 
Freed Vietnamese dissident travels to US: official

By The Associated Press | From Page: A13

North Korea frees US man; 2 more still detained

By The Associated Press | From Page: A13

 
US expands Ebola checks; Rwanda to check Americans

By The Associated Press | From Page: A14

WHO: Ebola vaccine trials in W. Africa in January

By The Associated Press | From Page: A14

 
Brown meets with health care experts about Ebola

By The Associated Press | From Page: A14

.

Opinion

Day, Blankenchip good for respective cities

By Letter to the Editor | From Page: A11, 3 Comments

 
‘Misleading’ mailer sent to residents

By Letter to the Editor | From Page: A11, 2 Comments

Expect voter participation to drop

By Dan Walters | From Page: A11

 

PUC chief: Likely 1st test for new Brown term

By Thomas Elias | From Page: A11

Editorial Cartoons: Wednesday, Oct. 22, 2014

By Daily Republic Syndicated Content | From Page: A11

 
Spering kept youth league going

By Letter to the Editor | From Page: A11, 11 Comments

.

Living

Today in History: Oct. 22, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Oct. 22, 2014

By Susan Hiland | From Page: A2

Horoscopes: Oct. 22, 2014

By Holiday Mathis | From Page: B6

 
Is it OK for a business to use its contacts to raise money for a charity?

By Kathy Mitchell and Marcy Sugar | From Page: B6

Hummus and chocolate together? Deliciously so!

By The Associated Press | From Page: B7 | Gallery

 
Easy slow cooker chili that lives up to the hype

By The Associated Press | From Page: B7 | Gallery

Roasted beets can brighten up any holiday table

By The Associated Press | From Page: B7 | Gallery

 
.

Entertainment

TVGrid

By Daily Republic Syndicated Content | From Page: A5

 
Argentina demands ‘Top Gear’ apology from BBC

By The Associated Press | From Page: A7

‘S.H.I.E.L.D’ fans push for Coulson/May romance

By The Associated Press | From Page: A7 | Gallery

 
From Kors to DVF, fashion mourns de la Renta

By The Associated Press | From Page: A7 | Gallery

.

Sports

Bruins hold off Sharks to win 5-3

By The Associated Press | From Page: B1 | Gallery

 
Local report: Vikings earn 3-0 SCAC volleyball win over Wolves

By Daily Republic staff | From Page: B1

SJS releases season’s first wins list

By Paul Farmer | From Page: B1 | Gallery

 
Bumgarner, Giants stop Royals 7-1 in Series opener

By The Associated Press | From Page: B1 | Gallery

49ers lose center Daniel Kilgore, needs surgery

By The Associated Press | From Page: B2 | Gallery

 
Raiders plagued by 3rd-down defensive woes

By The Associated Press | From Page: B2

For a young Mexican golf star, seeing helps him believe

By The Associated Press | From Page: B2

 
Shaw shoulders blame for Stanford’s slide

By The Associated Press | From Page: B2

Newman dodges penalty for Talladega inspection

By The Associated Press | From Page: B2

 
Logano: No worries about retaliation from Patrick

By The Associated Press | From Page: B2

Cowboys release Michael Sam from practice squad

By The Associated Press | From Page: B2

 
Fighters suing Mayweather over Vegas cable TV bout

By The Associated Press | From Page: B2

WS Game 2 starters Ventura, Peavy study in contrasts

By The Associated Press | From Page: B3 | Gallery

 
Hats off! Royals get old-timey with tip o’ the hat

By The Associated Press | From Page: B3

KC, San Fran mayors announce World Series wager

By The Associated Press | From Page: B3

 
Ezeli returns as Warriors beat Clippers 125-107

By The Associated Press | From Page: B3

Buster’s back: Posey tries to add 3rd Series ring

By The Associated Press | From Page: B3 | Gallery

 
AP sources: Rice’s appeal hearing set for Nov. 5-6

By The Associated Press | From Page: B3

Kings GM: NHL should educate after Voynov’s arrest

By The Associated Press | From Page: B3

 
Broncos are still No. 1 in AP Pro32 rankings

By The Associated Press | From Page: B9 | Gallery

‘Blade Runner’ Pistorius gets 5 years in prison

By The Associated Press | From Page: A12 | Gallery

 
.

Business

Google’s streaming music service adds mood to mix

By The Associated Press | From Page: B8

 
5 problems McDonald’s is facing in the US

By The Associated Press | From Page: B8 | Gallery

New efforts to ban tobacco farm child labor

By The Associated Press | From Page: B8 | Gallery

 
Total CEO killed in Moscow runway crash

By The Associated Press | From Page: B8

China economy grows at slowest pace in 5 years

By The Associated Press | From Page: B8

 
.

Obituaries

Rufina Ferrer Levengood

By Nancy Green | From Page: A4

 
.

Comics

Get Fuzzy

By Daily Republic Syndicated Content | From Page: B5

 
Baby Blues

By Daily Republic Syndicated Content | From Page: B5

Rose is Rose

By Daily Republic Syndicated Content | From Page: B5

 
Zits

By Daily Republic Syndicated Content | From Page: B5

Baldo

By Daily Republic Syndicated Content | From Page: B5

 
Peanuts

By Daily Republic Syndicated Content | From Page: B5

Blondie

By Daily Republic Syndicated Content | From Page: B5

 
Pickles

By Daily Republic Syndicated Content | From Page: B5

Beetle Bailey

By Daily Republic Syndicated Content | From Page: B5

 
Dilbert

By Daily Republic Syndicated Content | From Page: B5

Frank and Ernest

By Daily Republic Syndicated Content | From Page: B5

 
Sally Forth

By Daily Republic Syndicated Content | From Page: B5

Garfield

By Daily Republic Syndicated Content | From Page: B5

 
B.C.

By Daily Republic Syndicated Content | From Page: B5

Wizard of Id

By Daily Republic Syndicated Content | From Page: B5

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: B5

Word Sleuth

By Daily Republic Syndicated Content | From Page: B6

 
Cryptoquote

By Daily Republic Syndicated Content | From Page: B6

Crossword

By Daily Republic Syndicated Content | From Page: B6

 
Bridge

By Daily Republic Syndicated Content | From Page: B6

Sudoku

By Daily Republic Syndicated Content | From Page: B6