Wall Street shows modest moves a day after tumble

[Joanne98]

Brian Reynolds, chief market strategist at New York-based WJB Capital Group, said the stock market's slide means it could be ripe for a bounce but that a lasting recovery won't come until credit market investors begin to put money into riskier debt that is now out of favor. Investors have been buying the safest types of debt, like government bonds, in favor of mortgage and credit card debt and some corporate debt.

"It's just another continuation of what we've seen for the last year and a half. If you compare the valuation in stocks to the valuation in credit, there is a huge disparity there," Reynolds said.

He contends the S&P 500 index, which is down 22.4 percent in 2009, will continue to fall until it hits the 600 level. That would be a loss of another 14 percent.

Investors are also beginning to look toward the Labor Department's February employment report, which is set for Friday. The monthly employment figures are one of the most important economic barometers because rising unemployment cuts into how much consumers spend. Consumer spending accounts for more than two-thirds of U.S. economic activity.

Government bonds mostly fell Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.94 percent from 2.87 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, was flat at 0.27 percent from Monday.

The dollar was mostly lower against other major currencies, while gold prices fell.

http://finance.yahoo.com/news/Wall-Street-fluctuates-a-day-apf-14529116.html

We should start promoting Jubilee. That would chase the investors out of the bond market.