S&P 500 FINANCIALS INDEX
| Value 166.19 | Change 3.01 | % Change 1.8% |
MLPs keep flying. The Alerian MLP Index gained 2.66 to the 243s, the highest level since Sep 12. REITs & junk bonds funds were higher. Like MLPs, some junk bond funds are back to levels not seen since before the Lehman collapse. The VIX is flat in the 23s. Treasury bonds sold off, the yield on the 10 year Treasury rose 7 basis points to 3.62%
Alerian MLP Index --- 2 weeks
Commodities are also in a rally mode with oil leading the way up.
| CLU09.NYM | ..Crude Oil Sep 09 | ...66.24 | ... 0.84 .......(1.3%) |
Claims for unemployment insurance rose 30K to 554K, above estimates of 550K. This increase follows 2 weeks of sharp drops largely because automakers didn't lay off as many workers as expected in early Jul. The four-week average of claims, which smooths out fluctuations, dropped to 566K, lowest level since Jan. The downward trend in jobless claims is viewed as encouraging
.US Initial Jobless Claims Rise by 30,000 to 554,000
UPS (UPS), the world's largest shipping carrier, said Q2 profit plunged 49% to $445M as sales fell 16.7% from the stagnant global economic activity that affected all of business units. The outlook for Q3 was below expectations. They said that while the economy may be bottoming out the larger question is how long it stays at low levels before growing! The stock was off 50¢. EPS was 44¢ a share (adjusted earnings were 49¢) versus 85¢ last year. Revenue dropped to $10.8B from $13B last year. Analysts expected earnings of 49¢ a share on revenue of $11B. UPS expects Q3 earnings in a range of 45¢ -55¢, below 59¢ analysts' forecast. Their general outlook is very cautious. UPS is seen as a bellwether of the global economy, since it deals with such basic indicators of company health as orders & product shipments.
UPS Forecasts Profit Less Than Estimates; Sales Fall
3M (MMM) & McDonald's (MCD), 2 Dow stocks which are also Dividend Aristocrats, reported different earnings, MMM was up 3 but MCD fell 2¼. AT&T (T), another Dow stock, reported good earnings, stock up ¾.
- 3M profit surges past estimates, stock climbs- Reuters
- McDonald's 2Q profit falls 8 pct on strong dollar- AP
- AT&T's 2Q profit falls on economy, iPhone subsidies- AP
CIT (CIT) is back in the shaky camp. The rescue plan worked out earlier this week may not be enough to keep them out of bankruptcy. The stock is down 13¢ to 73¢.
•CIT Chapter 11 Filing May Follow August Debt Swap Under Bondholder Plan
Dow is up 900 points (more than 10%) in less than 2 weeks. This much euphoria without fundamental reasons can not last.
Dow Jones Industrials --- 2 weeks
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