Mixed markets meander

The Dow began the day in the black, but selling pulled it into the red. Dow is down 25, advancers equal decliners & NAZ is up 9 (helped by Intel's improved guidance for Q3). Banks also started strong but have slipped to near break even (good enough to set another 2009 high). The last time the Financial Index was at this level was the start of Nov, almost 10 months ago.

S&P 500 FINANCIALS INDEX

Value 198.16

Change 0.33

% Change 0.2%

MLPs & REITs fell, each index was off ½ point, & junk bonds funds were mixed. The yield on the 10-year Treasury bond was flat at 3.46%.

Alerian MLP Index --- 1 month




Dow Jones REIT Index --- 1 month




Bulls are back buying buying oil. Next week, they may want to take it to a new 2009 high, above 75.

CLV09.NYM

...Crude Oil Oct 09

...73.34

... 0.85 .......(1.2%)

Consumer spending edged up in Jul with help from the Cash for Clunkers program. However household incomes, the fuel for future spending increases, were flat. Consumer spending rose 0.2% in Jul, matching expectations. But personal incomes were unchanged last month, weaker than an expected gain of 0.2%. The personal savings rate dipped slightly to 4.2% from 4.5% in Jun (compared with a savings rate of 2.6% last year). The modest rise in spending last month followed a 0.6% jump in Jun, driven by a surge in gasoline prices. These mixed numbers can make either bulls or bears happy.

•Consumer Spending in U.S. Climbed in July on `Cash for Clunkers' Program


Consumer confidence in Aug fell to its lowest in 4 months on worries over high unemployment & dismal personal finances. The Surveys of Consumers said its final index of confidence for Aug fell to 65.7 from 66.0 in the prior month. This reading was the lowest since 65.1 in Apr but above expectations for 64.5. Consumers rated the current economic conditions the worst since Mar, when the stock market hit 12-year lows. The index fell to 66.6 from 70.5 in Jul.

Consumers' Mood at Four-Month Low- Reuters



Intel (INTC), Dow stock, raised revenue guidance for Q3 for sales of $8.8B-$9.2B up from a range of $8.1-$8.9B given last month. Analysts had been expecting $8.55B. It added that it expects the quarter's gross profit margin to be in the upper half of the range it previously forecast. Yesterday, Dell (DELL), the world's No. 2 PC maker, said while consumers are showing more signs of coming back to stores to buy PCs, corporations are still holding off purchases. It might not see a significant turnaround in tech spending by businesses until next year after Windows 7 is released. INTC was up 91¢ & DELL gained 54¢.

•Intel Raises Sales Forecast in Sign Computer Demand Reviving; Shares Gain

Intel --- 1 year




Dell --- 1 year





This is a lazy Fri, not a lot will be decided in the markets.

Dow Jones REIT Index --- 1 month