- Major Retail Earnings in Focus Ahead of Shopping Season
- Look Ahead: 'Risk On' Sentiment Could Fuel Rally Further
- Week Ahead: Stocks Search for Catalyst in Quiet Week
- Unemployment May Crack 10%, Job Losses to Bottom
- Look Ahead: Choppy Trade Likely, Cisco to Boost Techs
- Will Fed Change Its Tune?
- Tuesday Preview: Stocks to Seesaw, Economy in Focus
- Week Ahead: Volatility, the Fed and Plenty of Economic Data
- Stocks Unlikely to be Spooked on Halloween Eve
- US GDP Pivotal to Market Sentiment on Thursday
RSS FEED
MOST SHARED
- Herbalife Vs. Hedge Funds
- AIG CEO Ready to Quit over Pay Constraints: Report
- Apple Surpasses Nokia as Top Cellphone Maker by Profits
- China Factory Output Leaps to 19-Month Highs
- America Is On Sale
- Toll Brothers: More Contracts Signed, but Sales Down
- Cramer Jeers J&J, Applauds Abbott
- Three Things the US Can Do To Stop the Dollar's Decline
- Beware of 'Trampling Effect' When Market Tops: Manager
- Gold Heading to $1150: Art Hogan
- Starbucks Brews Up Growth
- Farr: An Extended Period—No Fat Lady in Sight
- More Upside if S&P Passes This Number: Market Pro
- Murdoch Lashes Out At Google
- Fighting The Flu Vaccine Critics
- Nov. 10: Unusual Volume Leaders
- Shadow Inventory Dwarfs Loan Mods
- US Recovery to be Weak, Erratic: Top Fed Officials
- AIG CEO Ready to Quit over Pay Constraints: Report
- Retail Earnings in Focus Ahead of Shopping Season
- Apple Surpasses Nokia as Top Handset Maker by Profit
- Brazil's Largest Cities Hit by Blackout
- In This Relay-Race Market, Who Gets Baton Next?
- Workers Staying Put at Their Jobs as Jobless Surges
- Ponzi Proceeds: Bidding on Madoff's Toys
- Toll Brothers: More Contracts Signed, but Sales Down
Market Insider
Text Size 
As March winds down, traders say portfolio reshuffling ahead of the end of the first quarter could mean buying for stocks and more trouble for Treasury bonds.
The betting is that some investors will need to increase their exposure to stocks before the quarter ends because of the stock market's big run up. In the bond market, a weak five-year auction Wednesday and continued heavy buying in short-term t-bills is causing some unease. Treasurys fell over concerns about growing debt supply to finance the budget deficit.
From 'Fast Money':
On Thursday, investors will be watching weekly jobless claims and the final read on fourth quarter GDP, both reported at 8:30 a.m. There's plenty of Congressional testimony and a flurry of Fed speakers. Several earnings reports are also expected, including Best Buy [BBY
Loading...
()
], Gamestop [GME
Loading...
()
] and Dr. Pepper Snapple [DPS
Loading...
()
] ahead of the open, and Lululemon Athletica [LULU
Loading...
()
] and Accenture [ACN
Loading...
()
] after the bell.
"Traders are looking to buy the dips" for the next several days, said LaBranche Financial's Patrick Boyle. He said the momentum on the buyside should draw in more buyers ahead of the quarter end Tuesday. "It could be a decent markup at quarter end.. and then you want to sell it into the G20 meeting," he said.
Boyle said uncertainty around the G20 meeting next Thursday could result in dollar weakness, which would also be a negative catalyst for stocks.
For the first time Wednesday, the Fed bought Treasurys under the new program it announced last week. It bought heavily, mainly in 7-year paper. But other investors continued to rush into the safety of short-term t-bills, said Kevin Ferry of Cronus Futures Management.
'Fast Money' Web Exclusive:
The Treasury auctions 7-year notes Thursday, but Wednesday's $34 billion auction of 5-years was not well received. Investors had expected better results, after a strong $40 billion 2-year auction Tuesday.
The yield on the 10-year rose to 2.79 percent, from 2.71 percent Tuesday, as investors sold the notes.
"The calendar is affecting the timing of what they're trying to do," said Ferry of the Fed. He also said the dual impact of fewer U.S. firms able to participate at high levels and a pull back by foreign investors is affecting Treasurys.
"The system isn't breaking down right now, but it is starting to show cracks. The very entities that you need to be well capitalized and willing to play to get this game to work are being vilified for their capital ratios and they don't want to play and they don't know the rules," he said.
From 'Mad Money':
At the same time, foreign buyers are stepping back. "If you were an international buyer and you weren't sure about what they (the government) is doing and you thought they might debase their currency over the medium term, why wouldn't you park your self in a short-term security?" he said. "It just means the street's role in this has to be increased. Foreign buyers are afraid they're going to get burnt."
Ferry said time will tell if the Fed's program is working, and the market's response in the beginning of April will be telling. "You can't say for sure it's not working," he said.
Thursday Look Ahead
Fed speakers out on Thursday include Atlanta Fed President Dennis Lockhart, who speaks in Paris at 5 a.m. Then, Dallas Fed President Richard Fisher speaks at the University of Dayton at 12 p.m. Richmond Fed President Jeffrey Lacker speaks at 12:40 p.m. on the economic outlook in Charleston, S.C., and Minneapolis Fed President Gary Stern speaks at the Economic Club of Minnesota at 1 p.m.
More From CNBC.com
- Get After-the-Bell Dow 30 Quotes
- Credit Spreads and Libor Data
- Futures and Pre-Market Data
- Currency Data
Traders say Thursday's market could be constrained by hearings on securities regulation at both the Senate Banking Committee and the House Financial Services committee. Treasury Secretary Tim Geithner speaks at the latter on the role of a super financial markets regulator. At the second hearing, SEC Chairman Mary Schapiro is among those testifying on enhancing investor protection and the regulation of securities markets. A parade of former SEC chairmen and market regulators speak at that 9:30 a.m. hearing.
Speaking of Geithner, the White House late Wednesday declared the dollar would be the world's reserve currency for a long time. Comments Geithner made at the Council on Foreign Relations Wednesday morning in response to a question about the dollar as reserve currency resulted in a sell off. Geithner clarified his comment, helping the dollar, but the White House gave the green back another endorsement late in the day.
Earlier this week, People's Bank of China Gov. Zhou Xiaochuan called for a new international reserve currency to replace the dollar.
Questions? Comments?
- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
- If you are lucky enough to have money and the time, this is a great time to see America, says CNBC's Jane Wells.
- What’s powering your microwave, fridge and computer? Part of it is fuel from Russian nuclear weapons. The NYT reports.
- One author sees lessons for you in Disney’s recent Makeover of Mickey Mouse: “Nice” doesn’t always win.
- With 123 years of history, slogans and commercials, Coca-Cola is the most recognized brand on earth.
- The opening of a virtual pet store in “World of Warcraft” could prove a cash bonanza for Activision-Blizzard.
Data is a real-time snapshot *Data is delayed at least 15 minutes