S&P 500 FINANCIALS INDEX
| Value 157.10 | Change -1.47 | % Change -0.9% |
There has not been a lot of change in high yield sectors. MLPs are up a little while REITs & junk bond funds pulled back. Even oil is down 50¢ on this quiet day.
Consumer prices were unchanged in Apr & industrial output declined, at a slower pace, suggesting the worst of the recession may be over. The CPI was flat (as expected) after falling 0.1% in Mar. Last year consumer prices fell 0.7%, the biggest 12-month decline in over 50 years. Also U.S. industrial production fell 0.5% last month, the 6th consecutive monthly decline but at a more modest pace than in recent months. Mar output fell 1.7%. The capacity utilization rate, a measure of slack in the economy, fell to 69.1% in Apr, the lowest level on records dating back to 1967. Today's figures provided more signs the pace of recession may be easing.
Consumer confidence rose in early May to its highest level since the Sep (when the economy fell off a cliff). The Reuters/University of Michigan Surveys Consumers index rose to 67.9 in May, up from 65.1 in Apr. In addition, the index of consumer expectations jumped to 69.0 (its highest since Oct 2007), up from 63.1 in Apr. However confidence remains shaky overall with a majority of consumers reporting their financial situation had worsened due primarily to income declines, shorter work hours & lost jobs.
U.S. Consumers' Mood Jumps to Highest Levels Since Sept.- Reuters
The purpose of TARP program was to help banks in financial difficulty during the credit crisis. Now it's scope is being expanded to included some of the largest insurance companies. Already regular companies are knocking on the door of the Treasury because of its unlimited credit resources. Critics call it making a deal with the devil. Among other things, these deals can haunt execs requesting the money. Can you spell, Barney Frank?
•Prudential, Allstate, Four More Insurers to Get TARP Capital From Treasury
This is shaping up as the 2nd down week for stocks in the last 10. In May, stocks just keep wandering trying to find their way.
Dow Jones Industrials --- 2 weeks
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