Friday, February 5, 2010

Jobs report brings confusion & mixed stock prices

Dow dropped 400 in 2 days, but recovered some of that in the last hour. Thanks to the late day rally, Dow finished up 10, decliners over advancers 3-2 but NAZ rose 15. Banks are having a tough time finding friends but the Financial Index managed a gain off its 6 month low.

S&P 500 FINANCIALS INDEX

Value
187.74
Change
2.26
% Change
1.2%





MLPs are having a very rough year following their best year in history (not to mention one of the best performing groups in the stock market last year). The index dropped 20 in less than 2 days. Today's 270 level brought back buyers who reduced the loss to "just" 4 in the 276s. Grrr! The REIT index rose 3¼ helped by a favorable report from Simon Property (SPG) which gained 3+. Junk bond funds got punished, down 1-3%. Demand was strong for Treasuries. The yield on the 10-year Treasury bond dropped 6 basis points to 3.55% (a 6 week low).

Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD








Commodities were also punished with oil leading the charge down. Oil is at a 7 week low. The decline for gold was less severe. Some are interested in gold as a defensive investment at a time when uncertainty it rising. Their YTD charts show investors are betting the global slowdown will drag on.

CLH10.NYM..Crude Oil Mar 10..71.00 ..Down 2.14
......(2.9%)


GCG10.CMX..Gold Feb 10..1,056.70 ..Down 5.70
......(0.5%)


OIL (ETF) --- YTD




GLD (ETF) --- YTD





Gold Super Cycle Click Here






Markets are becoming very nervous. Adding to the many worries is a financial crisis in Greece, Spain & Portugal. They are in big trouble & looking for bailout arrangements, but nobody is volunteering to help. This has the potential to shake the whole Euro Zone. Global financial leaders gathering in cold Canada are confronted with more market turmoil. A British official said he's afraid they're losing the unity that helped overcome last year's near meltdown. Uncertainty is on the rise!

Europe's debt crisis intensifies - AP





Find out what's inside Trend TV Click Here


Financial markets are becoming overwhelmed by global problems. The jobs report was another reminder that the recession is not healing quickly. Europe is coming unglued with 3 countries in the Euro Zone in deep trouble. The € which had been near $1.50 recently has sunk to $1.36. Dow is trying to hang on to 10K, not a good sign, while red hot NAZ has also been struggling. Earnings season is largely over & proved to be a dud. Despite the late day rally, bears are in charge.

Dow Jones Industrials --- YTD




Nasdaq --- YTD






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