S&P 500 FINANCIALS INDEX
| Value 156.35 | Change -6.07 | % Change -3.7% |
MLPs are having a very rough time on the gloomy forecast for economic growth plus lower oil prices, down almost 6 (& down 18 from its high a couple of weeks ago). REITs & junk bond funds are also selling off while the VIX, volatility index, is up an eye popping 3.80 (13.6%). Treasuries are having a good day, up sharply bringing the yield on the 10 year Treasury down 7 basis points to 3.72%
AlerianMLP Index --- 2 weeks
The World Bank cut its forecast for global growth in 2009, predicting the world economy will shrink 2.9%. They said, "The global recession has deepened." Global trade is expected to plunge by 9.7%, while total gross domestic product for high-income countries contracts 4.2%. Economic growth in developing countries should slow to 1.2% - but excluding relatively strong China & India, developing economies will contract 1.6%. This forecast is a sharp reduction from its Mar prediction of a 1.7% global contraction (which would have been the worst on record).
•World Bank Cuts Global Forecast, Sees `Substantial' Effect on Poor Nations
Oil is pulling back sharply on the dreary forecast for the global economy (i.e. requiring less oil).
| CLN09.NYM | ...Crude Oil Jul 09 | ...66.88 | ... 2.67 .......(3.8%) |
Walgreen (WAG), Dividend Aristocrat, fell 1.34 to 30.09 after reporting lower earnings, 53¢ EPS for qtr ending May 31 vs 58¢ EPS in the prior year. WAG is cutting jobs, opening fewer stores than originally planned & trimming the selection of items as part of its plans to return to double-digit earnings growth under a new chief executive.
The idea of the recession bottoming out provides some comfort. But the follow up question has to do with how the recovery will play out. Today's markets are suggesting a slow recovery.
Dow Jones Industrials --- 1 month
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