President's speech does not inspire the markets

Dow fell 101 to another low for 2010, decliners over advancers 2-1 & NAZ dropped 37 as Apple (AAPL) is weak following its big announcement yesterday. Banks sold off after the big speech last night. They remain under pressure with new tax/fees & worries about their portfolios of loans.


S&P 500 FINANCIALS INDEX

Value 191.22

Change -0.85

% Change -1.0%

The MLP index was up pennies while the REIT index fell another 1. Junk bond funds rose slightly. The VIX was flattish in the 23s, still above 18 early last week. The yield on the 10-year Treasury bond was up 2 basis pints to 3.64%.


Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- YTD






Despite all the cold weather, oil went below 74. Worries about the economic recovery around the world could be holding back buyers. Meanwhile gold is trying to find a floor.

CLH10.NYM

...Crude Oil Mar 10

...73.52

... 0.15 .......(0.2%)

GCG10.CMX

...Gold Feb 10

...1,086.20

... 1.70 ......(0.2%)

A drop in new jobless claims came in short of expectations & factory orders rose only slightly, fresh evidence the economy is recovering at a slow, uneven pace. First-time jobless claims dropped 8K to 470K, a 450K figure was expected. The 4 week average rose for a 2nd straight week to 456K after falling for 19 straight weeks. However the Labor Dept cautioned that current figures could be artificially inflated. Continuing claims fell 57K to 4.6M.

Jobless Claims in U.S. Declined Last Week to 470,000


Initial jobless claims - 1 year




Continuing Claims - 1 year

Photo: Bloomberg




Procter & Gamble (PG), a Dow stock & Dividend Aristocrat, posted a better-than-expected profit, as promotional price cuts & increased advertising helped bring more shoppers back to its brands. It forecasted that sales should rise more than expected in 2010. Earnings were $1.49 per share in FY Q2, down from $1.58 per share a year earlier. As is so common, results beat expectations ($1.42). Sales rose 6.4% to $21B while the volume of goods sold rose 5%. P&G still expects to earn $4.02 - $4.12 per share in the current FY & expects organic sales to rise 3 - 5% up from its prior forecast of 2 - 4%. PG gained 1.80 to 62.61.


P&G Tops Estimates as Price Cuts Spur Volume Gains


Procter & Gamble --- 2 years

Photo: Bloomberg

AT&T (T), Dow stock, reported a 26% rise in Q4 profits, fueled by solid growth from a wireless business that is adding customers who want to connect their e-readers, smartphones & netbook computers to the Web. Quarterly earnings rose to 51¢ a share from 41¢ a share a year earlier. Earnings matched expectations. However revenue fell 1% to $30.9B, in line with estimates. Wireless service revenue rose 9.2% as it added 2.7M net subscribers. The figure, 2nd highest quarterly total in AT&T's history, was far ahead of the 1.8M net subscribers expected. The success was partly due to the popular iPhone. In Q4 alone, 3.1M iPhone activations were recorded. The stock was up pennies after having a quiet time during the recession.

AT&T Fourth-Quarter Subscriber Gains Top Some Estimates


AT&T --- 2 years






After all the excitement yesterday, Apple is selling off, down 8 to 200 in response to the old saying about buy on the rumor but sell on the news. For what it's worth, I don't see their new iPad is much different than my netbook. A much higher price brings a few extra features.

Apple --- YTD










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Markets are solidly back on defense again. Jan is closing out & it looks like it will give an indication that this will be a down year for the stock markets. Today's earnings were better received. It looks like Ben Bernanke will have a job next week, his renomination vote should come today.

Dow Jones Industrials --- 2 weeks