Weak economic data takes its toll on markets

Late day buying reduced markets losses. Dow was off 93 (recovering half its biggest loss), decliners over advancers 4-1 & NAZ fell 36 after being hit been hard hit on a grimmer outlook for chip companies. Intel (INTC), Dow stock, dropped 82¢ (4%). Banks were weak, the Financial index went below 200 one more time. It has not strayed far from 200 for 3 months.


S&P 500 FINANCIALS INDEX

Value 197.33

Change -4.07

% Change -2.0%

The longer term charts gives a reminder of this year. MLPs are having their best year in history. But after hitting their high a month ago, they drifted lower in Nov. The REIT index hit its high over 2 months ago, followed by a choppy, sideways time. Today the MLP Index dropped 2 to the 262s. & the REIT index was off 4½. Junk bond funds were mixed to lower. Treasuries also muddled along. The yield on the 10-year Treasury bond slipped 2 basis points to 3.35%.


Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD





Commodities fell, oil is a good example. Increased worries about a slow global recovery drags down prices for most of them. But gold just does not want to go down.

CLZ09.NYM

..Crude Oil Dec 09

..77.60

.. 1.98 ......(2.5%)

GCX09.CMX

..Gold Nov 09

..1,144.80

.. 4.10 ......(0.4%)

CNBC has a report about how high the unemployment really is. After adding those who have given up looking & others who accept low paying jobs to "get by," the "real" rate is closer to 18%. Cost cutting approaches aimed at increasing earnings, help stockholders, but laid off workers are still collecting unemployment checks or worse.

• 'Real' jobless rate: 17.5% unemployed- CNBC

The Conference Board’s index of leading indicators rose 0.3% in Oct, its 7th consecutive gain. Improved results are from the rally in stock prices, low short-term interest rates & slowing job losses. But those causes are likely to stabilize.

•Leading Economic Indicators in U.S. Rise, Pointing to Sustained Expansion

Sears (SHLD) had a so-so report. Same stores sales were up less than 1%. But they managed to post a smaller loss form cost cutting. The market was not impressed, the stock dropped 2.83 to 72.94.

Sears --- 1 year





Dow is up an amazing 30% of the lows in July with only minor setbacks. Bulls are hoping this correction is another one of those minor setbacks.

Dow Jones REIT Industrials --- YTD