S&P 500 FINANCIALS INDEX
| Value 225.04 | Change -0.29 | % Change -0.1% |
High yielders are on fire, taking their yields & yields spreads over comparable Treasuries even lower. The Alerian MLP index gained another 1 to almost 316, yet another 2010 high. The REIT index jumped 1+ to 213, a new interim high. Junk bond funds were generally higher. Treasuries sold off, hiking the yield on the 10-year Treasury bond yield up 5 basis points to 3.82%
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
Oil & gold markets are quiet again today as they drift sideways.
| CLM10.NYM | ...Crude Oil Jun 10 | ...83.90 | ... 0.20 .......(0.2%) |
| GCJ10.CMX | ...Gold Apr 10 | ...1,140.00 | ... 5.00 .......(0.4%) |
Photo: Bloomberg
New home sales surged 27% in Mar, bouncing off the previous month's record low & blowing past expectations due to better weather & gov incentives which boosted sales. The Commerce Dept reported sales of new homes at an annual sales pace of 411K, the strongest month since last Jul & the biggest monthly increase in 47 years. Feb results were revised upward to 324K, but remained an all-time low. Sales had been especially weak over the winter, partly due to bad weather in much of the country. The median sales price was $214K, up 4% from a year earlier but down 3% from Feb. The new home sales report reflects signed contracts to purchase homes rather than completed sales, giving a feel for how many buyers were out shopping for new homes. It is likely buyers were trying to qualify for tax credits that will expire at the end of this month. Good news but the increase is off depressed levels & the looming expiration of tax credits must be kept in mind. In addition orders for durable goods, excluding transportation equipment, jumped in Mar, the most since the recession began in Dec 2007. Bookings for goods meant to last at least 3 years (excluding cars & aircraft) increased 2.8%.
•New-Home Sales in U.S. Surge 27% as Buyers Take Advantage of Tax Credit
New home purchases - 1 year
Durable goods increase - 1 year
Greece wants to activate its financial lifeline of as much as €45B ($60B). This follows a surge in its borrowing costs. Greece is facing a fiscal mess that threatens to spread to Spain & Portugal. The future of the € could be at stake which is at a very low $1.33. The request comes one day after the yield on the country’s benchmark two-year note topped 11% & Moody’s lowered Greece’s creditworthiness by one notch to A3, saying it was considering further cuts.
Greece Requests EU-IMF Rescue in Euro’s Biggest Test
Greek borrowing costs - 1 year
Microsoft (MSFT), a Dow stock, reported a global rise in computer shipments helped carry net income 35% higher in its Q3. The important Windows division reported strong consumer demand but more muted growth from corp customers. MSFT said in 2010 & into 2011 growth in IT (information technology) spending will increase. For the January-March Q3, Microsoft earned 45¢ per share, above the 42¢ forecasted & higher than 33¢ from last year. Revenue rose 6% to $14.5B, slightly above $14.4B expectations & ahead of $13.6B last year. The Windows division increased revenue 28% to $4.4B as sales of Windows for consumers rose 35%. Business licenses for Windows (more profitable) grew only 15%. The stock was down 51¢.
•Microsoft profit jumps 35 pct but investors shrug
AP
Microsoft --- 2 years
This probably will be another non eventful day with many traders going home early. MSFT continues the string of tech biggies reporting muted or disappointing earnings/guidance for 2010. But Dow wants to set another yearly high.
Dow Jones Industrials --- 2 weeks
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