Bond market sees a stronger economy

Bond market sees a stronger economy

washington

The bond market is betting on a stronger economy.

Prices for U.S. Treasury debt plunged for the fifth straight trading session Wednesday, and the yield on the benchmark 10-year note spiked to its highest level since October.

Money poured out of bonds and into stocks after rosy words Tuesday from the Federal Reserve gave traders confidence that the economic recovery is strengthening. Major stock market averages are at or near four-year highs.

Treasury yields — and interest rates that take their cues from Treasury yields, including mortgage rates — remain near all-time lows. So while mortgage rates may creep up, they should remain historically low.

Fed starts to tweet

washington

The Federal Reserve isn’t known for its brevity. Now, it has no choice.

At least when it comes to the tweets it will issue through its official Twitter channel — @federalreserve — which it launched Wednesday.

Like other Twitter users, the Fed will have to limit its tweets to 140 characters.

Gasoline tops $4 per gallon in 4 states, DC

new york

Gasoline is over $4 per gallon in four states and Washington, D.C., as a three-month surge in pump prices continues.

The nation’s capital, Illinois, California, Alaska and Hawaii all had average gas prices above $4 on Wednesday, according to AAA, Wright Express and Oil Price Information Service. Prices in several other states, including Oregon, Connecticut, New York and Washington, are almost there.

Nationwide, gasoline has soared by nearly 54 cents this year to an average of $3.81 per gallon.

Reynolds American to cut 10% of jobs

richmond, va.

Reynolds American Inc., the second-biggest U.S. tobacco company, said Wednesday that it will eliminate about 10 percent of its work force, or about 540 jobs, by the end of 2014 as it works to align its costs with changing dynamics within the industry.

The move will reduce spending by $70 million a year for the Winston-Salem, N.C.-based maker of Camel, Pall Mall and Natural American Spirit brand cigarettes.

Getting the iPad

cupertino, calif.

After the new iPad goes on sale Friday in the U.S. and nine other countries, Apple will make the tablet computer available in 25 additional countries a week later.

The new iPad is Apple’s third version and sports a faster processing chip and a sharper screen. It works with a faster cellular network called 4G.

The countries getting the device March 23 are Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, Greece, Hungary, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Macau, Mexico, The Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

Vindicator wire reports

Selected local stocks

STOCK, DIVIDENDCLOSECHANGE

Aqua America, .66, 22.09 —.31

Avalon Holdings,3.36—.14

Clear Channel, .77 71.00 —.95

Cortland Bancorp, 8.00.25

Farmers Nat., .125.89 .14

First Energy, 2.20, 44.49—.49

FirstMerit Corp., .64,16.75 —.02

First Niles Financial, .32,8.04.00

First Place Fin., .90—.02

FNB Corp., .48,12.13—.02

General Motors,26.32.26

General Electric, .68,19.79.20

Motors Liquidation, .0422.00

Huntington Bank, .16, 6.24.15

JP Morgan Chase, 1.00,43.58.19

Key Corp, .12,8.49.23

LaFarge, 11.70 —.29

Macy’s, .80, 39.91.34

Parker Hannifin, 1.56, 89.24—.46

PNC, 1.40,61.35—.59

RTI Intl. Metals,22.45—.15

Simon Prop. Grp.,3.80,141.12.17

Stoneridge 10.08 —.50

United Community Fin. 1.49—.02

Selected prices at 4 p.m. Wednesday. Provided by Stifel Nicolaus. Not to be construed as an offer or recommendation to buy or sell any security.