Markets tread water on weak home sales

Dow is down 7, advancers over decliners 3-2 & NAZ is up 8. Banks stocks are seeing profit taking after recent gains, the Financial Index can't get away from its 4 month lows.


S&P 500 FINANCIALS INDEX

Value 193.89

Change -0.90

% Change -0.5%

MLPs just keep soaring at a time when markets are only doing so-so. The Alerian MLP Index is up 1+ into the 283s, another 18 month high! The Dow Jones REIT Index is up a fraction in the 183s, barely good enough for another 2009 high. Junk bonds keep flying onward & upward. The VIX, volatility index, is flattish in the high 19s (it's yearly low). Treasuries were higher on the slowdown in home sales, the yield on the 10-year Treasury bond fell 4 basis points to 3.70%.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks




VIX --- 2 weeks





Oil cracked thru 75 as crude supplies fell. Bulls want this to become its floor once again. Meanwhile gold is floundering around. The stronger dollar has been behind its plunge in Dec & for the immediate future it will remain on defense.

CLG10.NYM

...Crude Oil Feb 10

...75.75

... 1.35 .......(1.8%)

GCZ09.CMX

...Gold Dec 09

...1,086.20

... 0.60 .......(0.1%)

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Sales of new homes plunged 11% unexpectedly in Nov to the lowest level since Apr, housing continues rocky reflecting a slump in demand following the extension of a deadline for first-time buyers to qualify for a tax credit. The incentive deadline was pushed back to Apr 30 & expanded to include current homeowners who relocate. The Commerce Dept said that Nov sales fell to an annual rate of 355K from a downwardly revised 400K in Oct & below the forecast rate of 440K. The median sales price of $217K was down 2% from $221K a year earlier but up 4% from Oct. The National Association of Home Builders said its index of industry confidence fell to the lowest level since Jun, reflecting concern that job losses & a slow economic recovery will continue to stifle demand. The recovery for home builders continues to be shaky. The recent increase in the yield on the 10-year Treasury bond is another negative home builders don't want.

•Sales of New U.S. Homes Unexpectedly Fell in November to Seven-Month Low


Personal incomes rose 0.4% last month, helped by a $16.1B increase in wages & salaries. The rise in incomes helped bolster spending, which rose 0.5% in Nov, but both were slightly less than expected. Income growth will not be sufficient to a significant recovery while debt is being paid off.

Consumer Spending in U.S. Climbs Less Than Forecast

Exxon Mobil (XOM), Dividend Aristocrat, is the weakest Dow performer this year. The stock is down 21¢ to 68.36 with a 2½% yield for the value investors.

Exxon Mobil --- YTD





Dow keeps meandering just under 10½K while NAZ has managed new yearly highs. Weakness in the Dow is disturbing. Maybe it's reflecting gloomy data on unemployment & sales for housing, autos & retail. Without major news, the rest of today & tomorrow should be a quiet time for the markets, many of the successful are enjoying the rewards they already earned.


Dow Jones Industrials --- 2 weeks