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Two Ways: Microsoft "Bonds" With Investors


Strengthen your portfolio in good times and bad.


Mister Softee's First Bond Offering

Microsoft (MSFT) sold its first US corporate bond yesterday. According to Reuters, the sale attracted over $10 billion in demand. Since the cash rich, Triple A-rated company didn't really need the money, some market participants considered it a rare lending opportunity. The $3.75 billion offering of senior unsecured notes consisted of $2 billion worth of 2.95% notes due June 1, 2014, $1 billion worth of 4.2% notes due June 1, 2019 and $750 million worth of 5.2% notes due June 1, 2039.

The company said it intends to use the proceeds for general corporate purposes, which could include working capital, capital expenditures and buying back stock. The offering is expected to close May 18.

From the Bull Pen: This is more evidence of risk appetite. And speaking of risk appetite, see how McDonald's (MCD) filled its gap at $54. A sell stop can be set below that level.

From the Bear Cave: Bears can still consider a play in Bank of New York Mellon (BK). If it's the start of a downtrend, the first stop could be near $28, and then $25. One can set a tight buy stop near $31.

Quick Check Around the World

Asian trading closed with the Hang Seng 0.38%, India 4.07%, Nikkei -1.62%, Shanghai 1.49% and Taiwan -3.23%.

Glancing towards Europe, we see the CAC -0.60%, DAX 0.34%, FTSE -0.50%

As of 8:15 AM EST, S&P Futures are trading +4 to 913.00, and Nasdaq futures are +6 to 1402.00.

A Look at Commodities

Over in commodities, crude oil is trading +1.05 to 59.55 while gold is +8.20 at 921.70 this morning. Silver is +0.350 to 14.26 and copper +4.15 to 213.50.

The dollar index is -0.4850 to 82.3100.

On the Radar


08:30 Trade Balance -29.2b

Click here for the full trading radar.

Happy Tuesday! Good luck and have a great day!

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No positions in stocks mentioned.

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