Monday, June 22, 2009

Quick Notes for the Day - June 22

Apple Sells More Than 1 Million New iPhones - Apple said Monday that it has sold more than 1 million iPhone 3GS models through Sunday, just three days after the phone's launch. Some 6 million customers have downloaded the new iPhone 3.0 software in the product's first five days, Apple said. In a statement, CEO Steve Jobs said the iPhone's momentum is "stronger than ever." The newest iPhone, which runs twice as fast as its predecessor, offers a 3-megapixel camera, the ability to capture video and other features such as new voice controls for making calls and playing music.

Treasurys Up on Fed Buys, World Bank Outlook - Treasury prices were higher Monday which pushed yields lower as the Federal Reserve was in the process of its continuing purchase of bonds. Also, a negative economic outlook from World Bank was creating a "flight to quality" to Treasurys which helped push the prices higher.

The Fed is expected to purchase Treasurys maturing between 2026 and 2039. The previous purchases for this maturity range have been for $3.5 billion and $2.5 billion. The buyback is part of the Fed's continuing effort to keep borrowing costs low including mortgage rates.

Dollar Stronger, Gold, Oil Fall - As part of the "flight to quality" after the World Bank outlook, the dollar and yen moved higher against the euro. The dollar is still seen as the most secure currency in the world.

Gold fell Monday to $923, the lowest level in one month, as falling oil prices and a stronger U.S. dollar reduced the precious metal's appeal as a hedge against inflation and a weaker currency. Crude oil fell below $68 a barrel Monday, the weakest in nearly two weeks.

In other metals, platinum fell 1.6%, palladium 1.9%, silver sank 2.8%, and copper fell 3%.

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