Mixed markets on favorable economic news

Summer doldrums are affecting the markets prior to the Labor Day holiday. Dow rose 8 (to another high for 2009), decliners are barely ahead of advancers & NAZ is even. Banks are higher although barely. The Financial Index is inching ahead, good enough for another 2009 high.

S&P 500 FINANCIALS INDEX

Value 196.53

Change 0.36

% Change 0.2%

The Alerian MLP Index dropped 1½ to the 238s, clearly on defense. The REIT index inched up pennies while junk bond funds were mixed. The yield on the 10-year Treasury bond was flat at 3.45%.


Alerian MLP Index --- 1 month




Dow Jones REIT Index --- 1 month




$75 resistance provided to be a major obstacle yesterday for oil, selling continues on worries about weak demand.

CLV09.NYM

...Crude Oil Oct 09

...70.87

... 1.18 .......(1.64%)

New orders for manufactured goods were up at the fastest pace in 2 years in Jul, led by higher aircraft orders. Durable goods orders jumped 4.9%, the largest advance in 2 years after falling 1.3% in Jun. That was above expectations for a 3% increase. However new orders were still down 25.8% from last year. Favorable results, but they are not an indication of a V shaped recovery. Jul orders were boosted by a surge in civilian aircraft orders at Boeing & reopening of Chrysler and GM assembly plants after emerging from bankruptcy raised automobiles output, leading to an increase in orders for motor vehicles.

•U.S. Durable Goods Orders Climb 4.9% on Aircraft; Ex-Transport, Gain 0.8%


New U.S. home sales surged 9.6% in Jul, rising for the 4th straight month & beating expectations. Sales rose to an annual rate of 433K from an upwardly revised Jun rate of 395M. Sales were up 32% from the bottom in Jan, but, more importantly, off 69% from the peak 4 years ago. The median sales price of $210K for a house was still down 11.5% from last year. Some buyers are rushing to take advantage of a federal tax credit that covers up to $8K for first-time owners.

•New-Home Sales in U.S. Jump 9.6% in Sign Economy Recovering From Recession


Economic data is good, again indicating that the economy is on the mend. But it still has a long way to go before making a significant dent in reducing unemployment, not to mention dealing with a ballooning gov debt load. Dow is up 3K in 5 months, some worry about this advance getting ahead of itself.

Dow Jones Industrials --- 1 month