Jobs report fails to move markets

Dow dropped on the opening after the release of the jobs report & was not able to recapture interest of buyers. However Dow ended up 11 thanks to buying at the close, advancers ahead of decliners 3-2 & NAZ shot up 17 to a new post Lehman collapse high. After making progress getting off the lows of its trading range, the Financial Index lost its momentum & headed back south.


S&P 500 FINANCIALS INDEX

Value 205.09

Change -1.12

% Change -0.5%

The MLP index was up 1 to the 293s, for the first week of 2010 much of its gains came out of the gate on Mon. The REIT index fell almost 2, drifting lower in the first week of 2010. Junk bond funds made solid advances today & in the first week. Treasuries with higher, the yield on the 10-year Treasury bond rose today lowering its yield 3 basis points to 3.79%.


Alerian MLP Index --- 1 week




Dow Jones REIT Index --- 1 week










Oil & gold don't know what to make of the jobs report.

CLG10.NYM

..Crude Oil Feb 10

..82.68

.. 0.02 ......(0.0%)

GCF10.CMX

..Gold Jan 10

..1,136.10

.. 3.00 ......(0.3%)

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Consumer credit dropped a record $17½B in Nov. Unemployment near a 26- year high discouraged borrowing & banks are limiting access to loans. The slump was more than anticipated & followed a revised $4.2B drop in Oct. The series of 10 straight declines was the longest since record-keeping began in 1943. Revolving debt, such as credit cards, plunged by a record $13.7B in Nov. Non-revolving debt, including loans for autos and mobile homes, declined by $3.8B. Consumers are cautious about spending, limiting their ability to aid the economic recovery.

Consumer Credit in U.S. Declined in November by Most on Record


% Change in revolving debt - 1 year









The discouraging jobs report leaves markets uncertain about what to do next. Treasuries are betting it signals a postponement by the Federal Reserve to raise interest rates sending Treasuries higher. Markets traded pretty much sideways in the first week of 2010. But NAZ has an upward bias while Dow is continued its 2 month flat performance.


Dow Jones Industrials --- 1 week




Nasdaq --- 1 week