Tax Cut Stock Hope Falters After Surging Investor RatesBy Shaon, Gaea News Network
Tuesday, December 7, 2010
NEW YORK (GaeaTimes.com) — The investors honeymoon with the tax cut extension was cut short by the rising bond yields. The S&P 500 did manage to hit a two-year intraday high after the announcement that President Barack Obama made the deal with Republicans to renew the tax cuts implemented in the Bush-era. The high did not last the day as the yield on the 10 year note surged to the highest level. . The interest rate spikes stopped the equity surge on its tracks.
The air was of grave anxiety when the news that the U.S. Securities and Exchange Commission had handed out subpoenas in its reports of insider trading. The index plumetted after the initial surge, thus confirming the 1,228 level stands its ground a strong resistance point. Citigroup shares rose 3.8 percent to $4.62 after reports that the US government had sold off its remaining shares. 3M Co fell to $84.19 as the growth outlook issued was below par.
On a higher note the number of Advancing stocks was greater than the declining ones on the NYSE by 1,496 to 1,485. The market is taking a very interesting shape.