Oct 01, 2010

Stocks end bullish month on weak note

NEW YORK (AP) — Stocks ended a monthlong rally on a weak note, but still chalked up the best September in 71 years.

Indexes rose sharply at the open Thursday following some better news on the economy, but stumbled at midmorning and stayed lower the rest of the day as traders pulled out profits following a spectacular run for the market in September. The Dow Jones industrial average closed down 47 points, having been up as many as 113 earlier in the day.

The Dow gained 7.7 percent in the month, making it the strongest September since 1939, at the dawn of World War II. However that runup followed a dismal August, and the Dow is still only up 3.5 percent for the year and is 3.7 percent below its closing high for 2010 reached on April 26.

Technology shares, which have been among the best performers this month, led Thursday's pullback. Major technology companies like Apple Inc., IBM Corp. and Oracle Corp. were all down about 1 percent.

“You can't underestimate people taking profits,” said T.C. Robillard Jr., a managing director at investment bank Signal Hill. Robillard said that like most reports throughout the month, Thursday's batch of data only confirmed that the economy is growing very slowly.

Major indexes have been surging all month on signs of incremental improvement in the economy, which have allayed worries that the country would fall back into recession.

The Dow Jones industrial average fell 47.23, or 0.4 percent, to 10,788.05. The Dow had risen 113 in the opening minutes of trading on improved economic news before pulling back.

Brett D'Arcy, chief investment officer at CBIZ Wealth Management Group, said traders might have also pulled back because the Dow was approaching the psychological barrier of 11,000. The Dow came within 52 points of that level Thursday morning. It has not touched 11,000 since May 4.

“We haven't broken out of that mental cycle that this market might be range bound,” D'Arcy said.

The Standard & Poor's 500 index fell 3.53, or 0.3 percent, to 1,141.20, while the Nasdaq composite fell 7.94, or 0.3 percent, to 2,368.62.

Traders were initially upbeat Thursday after a reading on regional manufacturing in the Chicago area jumped in September. Economists had expected the Chicago Purchasing Managers Index to fall slightly. That regional manufacturing report bodes well heading into Friday's monthly report on national manufacturing activity from the Institute for Supply Management.

“The jump in Chicago PMI was nothing short of shocking,” said Nick Kalivas, vice president of financial research at MF Global. “It was complemented by the drop in (unemployment) claims.”

The Labor Department said Thursday that first-time claims for unemployment benefits fell more than economists had predicted last week. Applications are still at levels that indicate employers aren't necessarily ramping up hiring, but at least the pace of firings seems to be slowing.

The government also slightly raised its estimate on second-quarter gross domestic product, the broadest measure of the nation's economic activity. The government said GDP grew at a 1.7 percent pace in the second quarter, better than the 1.6 percent pace estimated a month ago.

Bond prices fell, driving interest rates higher, after the upbeat economic reports dampened demand for defensive investments like bonds. The yield on the 10-year Treasury note, which is used to set interest rates on many kinds of consumer and corporate loans, rose to 2.51 percent from 2.50 percent late Wednesday.

Lake Washington Technical College

Lake Washington Technical College President Dr. Sharon McGavick said she intends to retire effective Jan. 15, 2011. McGavick has led the college since December of 2007.

Kitty Hawk Cafe

A new restaurant, Kitty Hawk Cafe, has opened on the flight line at Skagit Regional Airport. Operated by Therese Straight, the cafe serves breakfast and lunch seven days a week. Straight has 20 years of experience in the food industry and most recently managed the Port Cafe in the Bayview Business Park adjacent to the airport. The cafe is in a two-story building that housed the Crosswinds Restaurant before it closed in 2007.

Farmer's Insurance

Karl Slomchinski of the Slomchinski Agency for Farmer's Insurance in Mill Creek has been certified as a flood insurance provider with the Federal Emergency Management Administration. He can assist residential and commercial property owners.

Sep 30, 2010

Seattle Central Community College

Dr. Warren Brown has been appointed vice president for instruction at Seattle Central Community College. Brown succeeds Dr. Ron Hamberg, who retired in May after 30 years. Brown will direct curricula development, instruction, and 480 full and part-time faculty. He was recently the dean of student learning at Cascadia Community College. He has served in two administrative roles at Whatcom Community College.

Ater Wynne

George Bonini, a business, securities and tax attorney, joined the Seattle office of Ater Wynne as of counsel. Bonini advises companies regarding complex financial arrangements, cross-border transactions, mergers and acquisitions, tax matters and private equity transactions.

Symetra Life Insurance

Symetra Life Insurance in Bellevue hired Richard LaVoice as executive vice president, sales and distribution for life insurance and annuity products. LaVoice was corporate vice president and national sales manager of Retirement Income at MassMutual Financial Group.

Washington State Bar Association

The Washington State Bar Association presented Seattle attorneys J. David Andrews and Mark Hutcheson with the 2010 President's Award in recognition of special accomplishment or service to the WSBA. Andrews is senior counsel at Perkins Coie, where he focuses his practice on labor and employment law. Hutcheson is a partner in Davis Wright Tremaine's Seattle office and is a labor and employment law attorney.

YarrowBay

Kirkland-based developer YarrowBay hired James Deshazer as assistant project manager, Sterling Hamilton as senior financial analyst and Megan Nelson as director of legal affairs. Deshazer, who rejoined the company, specializes in construction management and does feasibility and permitting work. Hamilton has done economic and analysis and market research for public institutions and private businesses. Nelson has counseled private and municipal clients on real estate, land use and environmental matters.

Coast Sperry Van Ness

Lawyer Justin Carlucci joined the sales and leasing team of Coast Sperry Van Ness in Everett. He left a corporate law practice to join the Everett firm, where he focuses on commercial properties in East King and Snohomish counties.

Cole Real Estate Investments

Phoenix-based Cole Real Estate Investments, owner of City Center Plaza in Bellevue, filed registration statements with the Securities and Exchange Commission: one for Cole Advisor Retail Income REIT and the other for Cole Advisor Corporate Income REIT. They were formed to invest primarily in single-tenant commercial properties with long-term net leases. Cole Advisor Retail will focus on “necessity” retail tenants, while Cole Advisor Corporate will focus on “mission critical” office and industrial properties. There will be an initial offering for each company of up to $3.5 billion.

CWCapital LLC

CWCapital provided $71.5 million for the acquisition of Shorewood Heights, a 645-unit apartment property on Mercer Island. The 10-year loan was financed through CWCapital's Agency Lending Group and originated by Allan Edelson, senior vice president in CW's Chicago office.

Mortgage Help Day

Saturday is Mortgage Help Day at South Seattle Community College. From 10 a.m. to 4 p.m., people facing foreclosure can meet with lenders and get free advice from state-certified housing counselors. Statewide Poverty Action Network, a program of Solid Ground, is the host. Attendees should bring a photo ID, Social Security card, their last two years of W-2s and tax returns, last two pay stubs and bank statements as well as all mortgage documents. Pre-registration is required for translation services; call (206) 694-6794 or go to povertyaction.org.