S&P 500 FINANCIALS INDEX
| Value 218.43 | Change -10.21 | % Change -4.5% |
MLPs are taking another rest, the index fell 2½ to the 310s. The REIT index backed off 1½ to the 203s. Junk bond funds slipped a tad, but are just off their recent lofty levels. Treasuries were strong, taking the yield on the 10-year Treasury bond down a big 7 basis points to 3.78%.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
Commodities fell back. Oil has been pretty much trading sideways near 85 in the last month.
| CLK10.NYM | ...Crude Oil May 10 | ...84.21 | ... 1.30 .......(1.5%) |
| GCJ10.CMX | ...Gold Apr 10 | ...1,149.30 | ... 10.10 .......(0.9%) |
Oil (ETF) --- 1 month
Photo: Bloomberg
Housing construction posted a better-than-expected performance in Mar, rising to the highest level in 16 months on strength in multi-family homes. However, construction of single-family homes, the most important segment of the market, fell 0.9% to an annual rate of 531K units after a strong 5.7% gain in Feb. But permits for single-family construction, a barometer for future activity, were up, raising hopes that the recovery for housing will stay on track. Overall construction rose 1.6% to a rate of 626K. Applications for building permits recorded a better-than-expected increase in Mar, rising 7.5% to an annual rate of 685K.
•Housing Starts, Permits Rise More Than Estimated as U.S. Builders Rebound
Housing starts - 1 year
US consumer sentiment took a surprise negative turn in early Apr because of the persistently grim outlook on income & jobs, according to Thomson Reuters/University of Michigan's Surveys of Consumers. The overall index on consumer sentiments slipped to 69.5 in early Apr, the lowest in 5 months & below the 73.6 reading seen at the end of Mar (the forecast was for 75.0).
Google (GOOG), powering my blog, reported a 23% jump in Q1 revenue from a rebound in advertising. GOOG earned $6.06 per share in the qtr, up 37% from $4.49 last year. Revenue climbed 23% to $6.78B, their greatest revenue growth since Q3 of 2008. They also said GOOG would no longer take part in quarterly earnings conference calls, disappointing investors.
Bank of America (BAC), Dow stock, reported Q1 earnings increased 0.7% as strong trading revenue helped the bank offset continuing losses on consumer loans. The bank reported a $2.1B loss in its home mortgage business, but other consumer loans were showing signs of healing. Bank of America set aside $9.8B to covered soured loans during Q1, down 3% from $10.1B in the previous qtr. Last year it set aside $13.4B.General Electric (GE), another Dow stock, had earnings fall 32%, but it saw signs of improvement in its own results & the broader economy. The GE Capital lending unit posted a profit but losses remained high in areas like commercial real estate. GE's industrial units posted lower sales. GE earned 17¢ per share in Q1, after deducting preferred dividends, down from 26¢ last year. Revenue fell 5% to $36.6B. Excluding one-time items, GE's earned 21¢ from continuing operations. The 3 stocks were each down 3-5%.
•Google 1Q profit rises 37 pct but stock slides
AP
•U.S. Consumer Sentiment Unexpectedly Drops Amid Pessimism Over Job Market
Google --- 2 years
Bank of America --- 2 years
General Electric --- 2 years
Markets had been in bullish, especially after Dow finally went over the 11K. But not quite good enough earnings with fraud charges against GS were too much. Dow has retreated back near 11K, where it began earnings season on Tues. If earnings continue to come in below the most optimistic forecasts, there will be more selling pressure on stocks.
Dow Jones Industrials --- 2 weeks
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