Markets look for direction

Stocks were getting mixed messages from earnings reports which are failing to bring out the buyers. Dow was up 48 from good earnings reports in a few Dow stocks but advancers were over decliners 3-2 & NAZ was down 10. Banks rebounded after yesterday's decline in the last hour.


S&P 500 FINANCIALS INDEX

Value 202.28

Change 1.87

% Change 0.9%

MLPs are resting after their strong performance this month. The Alerian MLP Index fell ½ point. dipping below 265 but still up sharply form the 240-250 range it was in during Aug & Sep. The REIT index was down only a fraction in its sideways trading range since Aug. Junk bond funds were mixed at their high levels for the year. The VIX, volatility index, was up fractionally in the 22s after setting a new 2009 low of 20 yesterday. The 10-year Treasury bond yield went up 1 basis point to 3.42%. Oil slipped a little, taking it just below 81 & gold dropped 10 to 1053.


Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks





Earnings from the heavyweights were mixed & mushy. 3M (MMM), Dow stock & Dividend Aristocrat, had a very good Q3 report & was up 1.84. It's also double the low earlier this year. 2 more Dow stocks, Travelers (TRV) & McDonald's (MCD), also a Dividend Aristocrat, were each up 2+ on good earnings. Merck (MRK), another Dow stock & Dividend Aristocrat, had good earnings but sold off as the drugs have been weak yesterday & today. AT&T (T), a Dow stock, did well in its wireless business & gained. UPS (UPS) does not consider the recession to be almost over. They are handling fewer packages & those are smaller. High fuel prices is a kick in the head they don't need. The last 5 have had charts that show more sideways trading in the last year.

3M Profit Beats Estimates; Full-Year Forecast Raised

• Merck posts big profit jump, slight rise in sales- AP
• AT&T profit dips but wireless results strong- AP
• UPS reports much smaller 3Q profit- AP
• Travelers profit jumps on lower catastrophe costsAP(Thu 10:04am)
• McDonald's sees profit climb 6 pct
  AP (Thu 10:58am)

3M --- 1 year




Travelers --- 1 year




McDonald's --- 1 year




Merck --- 1 year




AT&T --- 1 year




UPS --- 1 year





The index of US leading economic indicators rose 1% in Sept for a 6th straight month of gains, suggesting the economy is likely to expand. But there are significant headwinds. Home prices fell 0.3% in Aug. The number filing first time unemployment claims last week ticked up 11K to 531K, over 500K is considered troubling. The sideways Dow this week recognizes bumps the recovery is encountering.


Weekly jobless claims - 12 months




Dow Jones Industrials --- 2 weeks