S&P 500 FINANCIALS INDEX
| Value 193.81 | Change 2.89 | % Change 1.5% |
This is rebound day from dreary Jan. The Alerian MLP Index rose 2 (but down 1 from its high) to the 286s while the REIT index gained 3. Junk bond funds were up helped by higher stock markets. The VIX, Volatility Index, fell 1.73 to the 22s, getting back to the 18s were it had been 2 weeks ago. The yield on the 10-year Treasury bond rose 5 basis points to 3.66%.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 1 month
VIX --- 2 weeks
Oil & gold are higher led by the stock markets. Oil was helped by Exxon's word about increasing capital spending on oil exploration.
| CLH10.NYM | ...Crude Oil Mar 10 | ...73.58 | ... 0.69 .......(1.0%) |
| GCG10.CMX | .....Gold Feb 10 | ...1,093.80 | ... 10.80 .......(1.0%) |
Gold Super Cycle Click Here
Photo: Bloomberg
US manufacturing grew in Jan, for a 6th straight month, to its strongest point in 6 years, bolstering hopes that America's factories will help drive the economic recovery. The Institute for Supply Management said its manufacturing index read 58.4 in Jan, up from 54.9 in Dec. New orders jumped to 65.9 in Jan, the highest level since 2004, from 64.8 in Dec. Current production surged to 66.2 from 59.7, also to its peak since 2004. Manufacturers have been pumping up production to feed their customers' depleted stockpiles, manufacturers' inventories contracted at a slower rate in Jan after their customers' stockpiles fell to an all-time low.
•Manufacturing in U.S. Expands More Than Forecast as Recovery Gains Ground
Personal incomes rose more than expected in Dec & consumer spending increased for the 3rd straight month. However, the increases were modest, reflecting the reluctance of many households to spend amid tight credit & high unemployment. Widespread joblessness is also limiting wage & salary growth, as firms find it easier to retain workers without raising compensation. The Commerce Dept said incomes rose 0.4%, the 6th consecutive increase. Income growth was spurred by a large, one-time social security payment. Wages & salaries rose only 0.1% after increasing 0.4% in Nov. Consumer spending increased 0.2% compared with a revised Nov figure of a 0.7%. As usual, the numbers were good but not great.
Consumer Spending in U.S. Increases for Third Month
Income growth rate - 1 year
Photo: Bloomberg
Exxon Mobil, a Dow stock & Dividend Aristocrat, reported Q4 profit that topped expectations as natural gas projects boosted results. But Exxon's net income still fell 23%, weak demand for fuel in the global economic slowdown caused a loss in its refining business. Oil & gas production increased 2% in Q4 to 4.2M barrels of oil equivalent (BOE) per day, helped by production from Exxon's massive liquefied natural gas (LNG) projects in Qatar. Net income for Q4 was $1.27 per share versus $1.54 last year. Results were hurt by its worldwide refining unit which had a loss of $189M compared with a profit of $2.41B last year. Revenue in Q4 rose 6% to $89.8B. Exploration & capital spending totaled $27B in 2009, up 4% from the prior year. The company expects capital spending to be $25-$30B per year over the next 5 years, very encouraging for oil traders.
Exxon Fourth-Quarter Profit Drops Less Than Estimated
Exxon Mobil --- 2 years
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Markets began the new month with good gains. Initially, this is just a reaction to the sell off in the last 2 weeks. More earnings reports are coming which will show if the rally has legs. The budget deficit for this year was estimated at a record $1.6T, next near it should come down slightly to $1.3T. This will mean continued Treasury auctions of massive amounts of debt bringing higher interest rates.
Dow Jones Industrials --- 2 weeks
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