S&P 500 FINANCIALS INDEX
| Value 193.90 | Change -4.25 | % Change -2.1% |
MLPs were weak at the opening, but rebounded to a loss of only 1+ in the 296s. The favorable article in the Wall Street Transcript yesterday has been helpful. Meanwhile REITs, dropped off. The Index fell 5+ to the 193s. Junk bond funds sold off 1-2%. The VIX rose 2½ to the 32s. Treasuries soared on the unemployment news. The yield on the 10-year Treasury bond dropped 12 basis points to 3.27%, heading back down to its yearly low under 3.2% reached last week.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index -- 2 weeks
VIX --- 2 weeks
10-Year Treasury Yield Index - 2 weeks
The weak jobs report hurt oil on fears there will be less demand for oil from the US. Nervous money is going into Treasuries, ignoring gold. That disconnect shouldn't last.
| CLN10.NYM | ...Crude Oil Jul 10 | ...73.08 | ... 1.53 .......(2.1%) |
| GCM10.CMX | ...Gold Jun 10 | ...1,197.90 | ... 10.40 .......(0.9%) |
The May jobless report greatly disappointed the markets. Payrolls rose 431K in May, including a 411K jump in gov hiring for the 2010 census. The projection was for a 536K gain. Private payrolls only rose 41K, less than forecast & followed an increase of 218K in Apr (revised from 231K). Because of the impact of hiring Census workers, private payrolls will be a better gauge of the state of the labor market for much of 2010. The jobless rate fell to 9.7%. While the economy may be mending, it's not making a significant dent in the unemployment rate. In addition, the underemployed rate, including those working at menial jobs to get by or have given up looking for work, is about 17%, a very troubling number.
•Payrolls in U.S. Climb Less Than Estimated as Confidence in Recovery Wanes
Unemployment rate - 1 year
Bill Gross, co-chief investment officer & manager of the world’s biggest bond fund said Treasuries are the premier holdings for fixed-income investors with the U.S. economy failing to produce private sector jobs & Europe’s sovereign-debt crisis threatening the region’s banking sector. “The U.S. is the least dirty shirt,” Gross said & continued, “The world is full of dirty shirts in terms of excessive debt, and the United Sates is one of those countries, but it still remains the reserve currency and still remains the flight to quality haven.” He added that Treasuries in the 5-10 year range & 30-year debt have become “the focus for us.” His fund’s investment in US gov-related debt in Apr was raised to the highest level in 5 months.
•Gross Says Treasuries Are `Least Dirty Shirt' in World of Debt: Tom Keene
This is one of those glum days. The unemployment report was very disappointing to say the least. Worse, there is no sign of a quite reversal of these dreary figures. The € sank to $1.20½, another new 4 year low. Now there is greater appreciation of how much damage the oil spill is doing to the economy. The Dow is less than 50 away from the 10K level. Maybe that support will hold.
Dow Jones Industrials -- 2 weeks
No comments:
Post a Comment