Lackluster day for the markets

Dow was off 38, decliners over advancers 2-1 & NAZ fell 11 in unexciting trading. The Financial Index has been clinging to the 200 level for 3 months while other averages have been hitting new 2009 highs.


S&P 500 FINANCIALS INDEX

Value 198.23

Change -1.25

% Change -0.6%

More sideways trading as the MLP index & REIT index are up pennies on this bland day. But each is near its 2009 high. Junk bond funds, not knowing where to go, are flattish. The yield on the 10-year Treasury bond rose 3 basis points to 3.36%.


Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks





Commodities, especially oil & gold, are taking a rest today.

CLZ09.NYM

...Crude Oil Dec 09

...78.88

... 0.02 .......(0.3%)

GCX09.CMX

...Gold Nov 09

...1,135.60

... 3.00 .......(0.3%)

Wholesale prices rose less than expected in Oct, the weak economy kept inflation pressures largely in check, which will in turn, keep short-term interest rates at record lows.The Producer Price Index (PPI) rose 0.3% last month, after falling 0.6% in Sep. In the 12 months ending in Oct, PPI fell 1.9% for the 11th straight decline. Excluding volatile food & energy costs, the core index dropped 0.6%. In the last year, the core index rose 0.7%, the smallest increase in more than 5 years. High unemployment helps keep a lid on labor costs, which enables companies to hold prices down. The inflation news remains "good"for a continuation of low interest rates.

•Producer Prices in U.S. Rise Less Than Forecast, Easing Inflation Concern


Change in core PPI (%)- 1 year





Home Depot (HD), Dow stock, reported Q3 earnings fell 8.9% when the housing & renovation markets remained weak. However, HD raised its outlook for 2009 after Q3 earnings topped expectations. Frank Blake, CEO, said that HD had seen signs of stabilization in real estate & has added market share in the qtr. Declines in the average checkout receipt eased a bit in Q3, falling 7.1% to $51.89 (compared with 8.2% decline YTD). Falling purchases of big-ticket items (like major appliances) have been a particular worry for retailers. Revenue fell 8% to $16.4B & EPS was 41¢ in Q3 ending Nov 1 (vs expectations of 36¢). The all important sales at stores open at least a year fell 6.9%. For the full year, HD expects earnings from continuing operations of about $1.50, a 9.5% increase over last year. HD fell 1.24.

•Home Depot Quarterly Profit Falls as Customers Cut Spending Amid Recession


Home Depot --- 1 year





Not much happening in the markets, at least they generally remain near 2009 highs.


Dow Jones Industrials --- 2 weeks