Stocks still undecided

Dow rose 33, advancers ahead of decliners almost 3-2 & NAZ was up 9. Banks are back in favor:

S&P 500 FINANCIALS INDEX

Value 165.38

Change 4.50

% Change 2.8%

The Alerian MLP Index was up 2¼ to 230 following yesterday's sell-off, helped by the rise in oil. REITs were higher & junk bond funds mixed.

Oil was strong on the weaker dollar. Traders are buying commodities to safeguard against inflation & dollar weakness

CLN09.NYM

...Crude Oil Jul 09

...68.04

... 1.92 .......(2.9%)

Initial jobless claims slipped 4K to 621K last week, in line with forecasts. The number collecting unemployment insurance fell for the first time in almost 5 months, breaking a string of 17 consecutive records. The unemployment report for May, expected tomorrow, may show unemployment going over 9% for the first time in over 25 years.

•Initial Unemployment Claims in U.S. Decrease, Signal Worst of Slump Ending

The average 30-year rate on mortgages last week rose to 5.29% from 4.91% in the prior week. The last time the rate was higher was Dec. 11, at 5.47%. Treasury yields are climbing which bleed thru to mortgage rates. The yield on the 10-year Treasury is 3.64%, up 8 basis point today, compared with 3% on March 17, the day before the FED announced its plan to boost mortgage-backed bond purchases & buy Treasuries.

•Fixed 30-Year Mortgage Climbs to Highest Level of Year, Freddie Mac Says


10-Year Treasury Yld Index - 2 weeks




May same-store sales fell below expectations, from rising unemployment curtailing consumer spending. Luxury chains & department-store operators continued to be the weakest sectors, while discounters & teen apparel retailers did well.

• US retailers report May sales declines- AP

Stocks are meandering, but the Dow may be trying to get up a head of steam to go into the black for the year. It only needs another 70 points.

Dow Jones Industrials --- 2 weeks