Markets drift while awaiting earnings

Dow began the day higher but sellers are bringing it back to break even, decliners barely ahead of advancers while NAZ is down 4. Banks also began higher but slipped into the red bringing the Financial Index to a 2 month low.

S&P 500 FINANCIALS INDEX

Value 150.53

Change -1.27

% Change -0.8%

The high yield sector is meandering along with the general markets. MLPs & REITs have fractional changes. Junk bond funds are a little firmer. The yield on the 10-year Treasury bond has been settling at or under 3½%. The VIX hangs around the 30 level.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks




10-Year Treasury Yield Index - 2 weeks




Oil is hitting a new 6 week low. Below is the chart for OIL (ETF) showing how much it has risen & fallen this year.

CLQ09.NYM

...Crude Oil Aug 09

...62.06

... 0.87 .......(1.4%)

OIL (ETF) --- YTD




The International Monetary Fund (IMF) predicted global economic rebound next year will be stronger than forecast in Apr based on the financial system stabilizing & slower contraction in industrialized countries. The IMF forecasted the world economy will expand 2.5% in 2010, higher than the 1.9% projection in Apr. A contraction of 1.4% is expected for 2009, a little worse than the prior forecast of 1.3%. The IMF said, “The global economy is still in a recession but we’re inching towards a recovery.”

•IMF Predicts Stronger 2010 Global Rebound After 2009 Economic Contraction


Volume continues low, even after allowing for the summer doldrums. Earnings are on every body's mind, tonight the first shot will be fired across by the bow by Alcoa (AA). Italy is hosting a G-8 Summit, little gets done at these photo ops. But this time there are worries that they may call for regulation of markets, with a focus on oil.

Dow Jones Industrials --- YTD