November auto sales boost stocks

Auto sales figures, while not great, were good enough for the Dow to eke out a new 2009 high. Dow advanced 126, advancers ahead of decliners almost 4-1 & NAZ went up 31. However banks were mixed, the 200 line for the Financial Index is still an object instead of a floor.

S&P 500 FINANCIALS INDEX

Value 197.21

Change 0.19

% Change 0.1%

MLPs did not participate in the rally, their index was down pennies. The change is suspicious because ones I follow (check my Yahoo widget on the right) were generally higher. The Dow Jones REIT Index had a good day, up an impressive 2.19 despite gloomy thoughts about commercial real estate encountering higher vacancy rates. Junk bond funds were higher, an improving economy will help companies whose debt they own. Treasuries sold off. The yield on the 10-year Treasury bond rose 7 basis points to 3.28%. Investment money is accepting more risk to earn higher rates.


Alerian MLP Index --- 3 months




Dow Jones REIT Index --- 3 months





Stock market strength benefited commodities. Oil had a good day but has endured a choppy 3 months. Gold had one of its best 3 month periods in history. Today it topped 1200, but that didn't quite hold.

CLF10.NYM

Crude Oil Jan 10

..78.21

.. 0.93 ......(1.2%)

GCZ09.CMX

..Gold Dec 09

..1,197.10

.. 16.00 ......(1.4%)

OIL (ETF) --- 3 months




GLD (ETF) --- 3 months








Auto sales in Nov were relatively good, that means beating lowered estimates. They ran at a 10½M annual rate (modestly above a 10.17M rate last year), good but far from the old days with sales of 17M. Toyota (TM) reported a 2.6% increase, Ford (F) deliveries were little changed, GM slid 2.2% & Chrysler sales declined 25%. Car companies benefited from comparison with Nov 2008, when the sales rate was the lowest for last year. Automakers are happy their industry is stabilizing at a rate they claim they can live with.

•GM, Ford, Toyota November U.S. Sales Beat Estimates as Economy Stabilizes

Annual auto sales rates (M) - 1 year





The weaker dollar is helping raise commodity prices & stocks, a pattern which has been underway for several months. It takes fewer than 87 Japanese ¥ to buy a dollar & the € is near $1.51. Among other things, many multi-nationals benefit from the weaker dollar when they translate foreign earnings. Meanwhile, Dubai debt worries are fading.

Dow Jones Industrials --- 3 months