Markets weak on rising dollar & job data

Dow fell 89, decliners over advancers 5-2 & NAZ was off 16. Banks participated in the decline, the Financial Index may break thru the 190 floor which could prove significant after lasting since Aug.


S&P 500 FINANCIALS INDEX

Value 190.62

Change -1.61

% Change -0.8%

The MLP index is up pennies from its yearly high while the REIT index fell pennies, not bad. Junk bond funds are flattish. Treasuries are strong, the yield on the 10-year Treasury bond fell 7 basis points to 3.52% (it hasn't strayed from 3½% for many months).


Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks





Oil fell back in response to weak markets & gold also had a retreat. Gold has been near 1120 for over a week. A strong dollar hurt commodities, especially gold, as more money is flowing into the safety of the US dollar after a downgrade in Greek debt.

CLF10.NYM

...Crude Oil Jan 10

...72.03

... 0.63 .......(0.9%)

GCZ09.CMX...

Gold Dec 09

...1,117.70

... 17.80 .......(1.6%)

It's Official Silly Season for Gold url! Click Here



A forecast of US economic activity rose for the 8th straight month in Nov according to the Conference Board. Its index of leading economic indicators rose 0.9% last month, up from 0.3% in Oct. This gives a signal the economic rebound will continue next year. Six of the 10 indicators increased last month helped by improvements in financial conditions, housing permits & the labor market. However, a separate measurement of the growth rate forecast over the past 6 months has slowed. In the half-year through Nov, the index grew at a 4.7% rate, down from the 5.9% rate in the half-year through Sept & the 5.2% rate through Oct.

•Leading Economic Index in U.S. Climbed More-Than-Forecast 0.9% in November


The number of jobless claims rose to 480K last week, up 7K from the previous week & compares with a decline to 465K that had been expected. The recovery of the nation's battered labor market proceeds in fits & starts. The 4-week average for claims fell to 467K for the 15th straight decline, viewed as an encouraging sign that the labor market is gradually improving. The 4-week average is at its lowest point in in 15 months, when the financial crisis was hitting with full force. The number receiving regular benefits rose by 5K to 5.19M, which does not include millions who have used up the regular 26 weeks of benefits typically provided by the state & are now receiving extended benefits for up to 73 additional weeks, paid for by the federal gov. A graph below shows the time looking for work has risen from 20 to 28 weeks over the last year. This continues to be a grim picture,

•Manufacturing in Philadelphia Area Expands as Sales, Employment Increase


Jobless claims - 1 year




Time looking for work - 1 year





This was not a good day on the news front. The dollar rose to the highest level in 3 months. Risk averse is back in vogue for investors causing Treasuries to rally (although gold did not). S&P’s decision yesterday to reduce Greece’s credit rating for the 2nd time this year raised concerns that the global recession is still weighing on some economies. In addition, the FED said yesterday that most of its lending programs will expire as scheduled Feb 1. Of course, the job news didn't help. Markets don't like what they see & hear.

Dow Jones Industrials --- 2 weeks