Mixed markets on mixed economic data

Dow started higher but couldn't hold the gains. Dow is down 8, advancers over decliners 3-2 & NAZ gained 4. Banks are rebounding after recent selling.

S&P 500 FINANCIALS INDEX

Value 150.97

Change 1.73

% Change 1.2%

MLPs rose today while REITs were little changed (related to disappointing news about a weak June for retailers in malls). Junk bonds were higher as Treasuries sold off. The yield on the 10 year Treasury bond jumped 7 basis points to 3.36% (off yesterday's recent low of 3.29%). The VIX fell 1 to 30.

Alerian MLP Index --- 2 weeks



Dow Jones REIT Index --- 2 weeks




Oil is getting used to a 60 price.

CLQ09.NYM

...Crude Oil Aug 09

...60.08

... 0.06 .......(0.1%)

The number of initial claims for jobless benefits last week fell to the lowest level in 6 months, largely due to changes in the timing of auto industry layoffs. However, continuing claims unexpectedly jumped to a record-high. New claims for unemployment tumbled 52K to 565K, significantly below expectations of 605K for the week ending July 4. Layoffs are slowing but jobs remain scarce & the unemployment rate is rising.

The drop resulted partly from technical factors. Auto layoffs that normally take place in early July, occurred in the spring as GM & Chrysler implemented sweeping restructuring plans. The seasonal adjustment expected a large increase in claims from auto workers & other manufacturing workers which didn't occur. The non-seasonally adjusted figure increased by 17K to 578K claims. Also, continuing claims jumped 159K to almost 6.9M, the highest on records dating back to 1967.

•U.S. Initial Jobless Claims Fall After Car Plants Shut Early for Retooling


Many retail chains reported disappointing June sales with weakness cutting across all sectors. But mall-based clothing stores were particularly hard. Even low-priced Costco (COST), down 47¢, saw same-store sales decline compared with June 2008. These are early signals for the important back-to-school season & they are negative.

Retailers report weak June sales - AP


Dow absorbed the Alcoa (AA) earnings with a higher opening. But jobless claims & retail sales numbers did not inspire confidence. Markets are looking for direction. Trading volume continues light, not much conviction behind price swings. The G8 meeting in Italy is talking about trade. Other countries have a cautious approach about launching coordinated (or any) stimulus packages.

Dow Jones Industrials --- 2 weeks