Mixed signals bring mixed markets

Stocks are having a difficult time trying to figure out where to go. Dow is up 10, advancers over decliners 3-2 while NAZ is up 5. The Financial Index is staying at the low end of its trading range (above 160) for the last 3 weeks.

S&P 500 FINANCIALS INDEX

Value 162.46

Change -0.15

% Change- 0.1%

The Alerian MLP Index is down change, REIT index is up 1 & junk bond funds are slightly higher. The MLP index has lost the wind in its sails & is looking for direction.

Alerian MLP Index --- 2 weeks




Oil rebounded to 72 , buyers are returning to commodities.

CLN09.NYM

...Crude Oil Jul 09

...72.00

... 1.38 .......(1.95%)

Wholesale prices rose less than expected in May. A drop in food costs limited gains in overall prices. The Producer Price Index (PPI) increased 0.2% in May, below analysts' expectations of 0.6%. Wholesale prices fell 5% in the past 12 months, the largest drop in almost 60 years. Excluding volatile food & energy prices, core PPI dropped 0.1%, also below analysts' forecasts of a 0.1% rise. A 2.9% rise in energy prices, including a 13.9% jump in the cost of gas, drove the May increase. Food prices, fell 1.6%, reversing a similar rise in April. The Consumer Price Index for May will be released tomorrow.

US Producer Prices Rose Less Than Forecast in May

Construction of new homes & apartments jumped 17.2% in May to 532K units, better than the 500K units that were expected & followed April's record low of 454K units. Applications for building permits, an indicator of future activity, rose 4% in May to an annual rate of 518K units. The better-than-expected rebound in construction is another sign that the prolonged slump in housing is coming to an end, good news for the broader economy. Construction of new homes jumped in May by the largest amount in 3 months, an encouraging sign that the nation's deep housing recession is beginning to bottom out.

•Housing Starts, U.S. Building Permits Soar, Beating Economists' Estimates


There are a lot of cross currents at work, but a downside bias remains. Chrysler was able to resume building cars, Best Buy reported dreary results (down 2+) & the confused situation in Iran is not helping world markets. Markets are adrift after yesterday's sell-off.

Dow Jones Industrials --- 2 weeks