Markets gain while waiting for the Federal Reserve announcement

Stocks are rising modestly ahead of the Federal Reserve's decision this PM. Dow is up 41, advancers ahead of decliners 5-2 & NAZ gained 13. Banks are also higher, but the Financial Index hasn't been able to stray far from its recent low of 190.

S&P 500 FINANCIALS INDEX

Value 192.93

Change 1.98

% Change 1.0%

After having a stellar year, MLPs just keep rising. The Alerian MLP Index is up 1.80 to the 280s yet another high for 2009. The Dow Jones REIT Index is up 1+, it just needs another 2 for a new 2009 high. Junk bond funds are mixed, at or near yearly highs. The yield on the 10-year Treasury bond backed off its 4 month high yesterday, down 3 basis points to 3.57%.


Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks





Oil rebounded after its recent sell-off & gold has an impressive gain. A stronger dollar had been hurting gold prices but today the Japanese ¥, British £ & € (Euro) were little changed, encouraging gold buyers.

CLF10.NYM

...Crude Oil Jan 10

...71.68

... 0.99 .......(1.4%)

GCZ09.CMX

...Gold Dec 09

...1,139.60

... 17.20 .......(1.5%)

GLD (ETF) --- 2 weeks




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Construction of new homes rebounded in Nov following a setback in Oct. Construction of new homes & apartments rose 8.9% in Nov to a seasonally adjusted annual rate of 574K units. The gain represented strength in all areas of the country although the increase was slightly lower than expected. Applications for new building permits were also up, rising 6% to an annual rate of 584K units, a stronger showing than predicted.

•U.S. Housing Starts Climb 8.9%; Building Permits Gain to Highest in a Year


Construction of new homes - 1 year





The Consumer Price Index rose 0.4% in Nov, up from a 0.3% increase in Oct. But "core" inflation, excluding energy and food, was flat, signaling that inflation is contained. It was the first time core inflation was unchanged after 10 straight monthly increases.

• Higher energy lifts prices but inflation tame- AP

Core Index of Inflation - 1 year





A prominent Norwegian bank, Norges Bank, today raised its benchmark interest rate to 1¾%, for the 2nd time in a row. But it said it expects to keep the benchmark interest rate on hold until Mar. It was Europe's first bank to raise interest rates. They said, "Growth in private consumption is strong and house prices are rising sharply." This thinking will prompt the FED to raise rates. Today's announcement may give a few hints about when that will happen.

Dow Jones Industrials --- 2 weeks