S&P 500 FINANCIALS INDEX
| Value 156.08 | Change -0.65 | % Change -0.4% |
MLPs are trying to get a head of steam up once again. The index is up 3 to the 216s. But REITs & junk bond funds were soft. Oil is up a fraction, in the 69s, & Treasuries are little changed.
Alerian MLP Index --- 1 month
Enbridge Energy (EEP & EEQ) pipelines bring most of the shale oil from Canada to the US (upper Midwest). Canada is the largest foreign source of oil for the US. A "green group" wants to stop their pipeline expansion because this is what they call "dirty" oil. The shares are up over 50¢.
| • | EEP | UPDATE - Green group asks U.S. to bar Canada oil sands at Reuters (Wed 4:28pm) |
The economy shrank at a 5.5% pace in Q1 but appears to be doing better in Q2 despite more layoffs (Kimberly Clack, KMB, announced laying off 1600 today). The revised reading on GDP showed the economy didn't fall as deeply as the 5.7% annualized decline reported last month. The main forces behind the modest upgrade in Q1 GDP were businesses didn't cut stockpiles of goods as much & imports dropped more sharply than previously estimated. For Q2, economists predict GDP is sinking at a pace of 1-3%.
Another gov report found new jobless claims jumped unexpectedly last week & continuing claims for unemployment benefits rose more than expected. Initial claims for jobless benefits rose last week by 15K to 627K, expectations were for a drop to 600K. The number of people continuing to receive unemployment insurance rose 29K to 6.74M. The four-week average of claims was largely unchanged, at 616K. Jobs remain scarce even with the economy showing some signs of recovery, more gloomy numbers on the unemployment front.
•Initial U.S. Jobless Claims Rise in Signal Labor Market Slow to Stabilize
Stocks took the unemployment numbers pretty well. But markets keep struggling, trying to move up. The chart shows that following 3 good months, stocks need time to rest.
Dow Jones Industrials --- 1 month
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