S&P 500 FINANCIALS INDEX
| Value | 199.02 | |
| Change | -0.28 (-0.1%) |
High yielders are resting as they have been doing for a week. The Alerian MLP Index slipped a fraction in the 304s while the REIT index fell 1+to 203. Junk bond funds were off a tad following their recent recovery. The VIX, volatility index, was up a fraction to 25¼. The yield on the 10-year Treasury bond fell 3 basis points to 3.22%, remaining in a low region.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
VIX --- 2 weeks
Oil is drifting sideways, but bulls are happy it's holding above 75. Gold is also drifting & has following winds which should take it to new records.
| CLN10.NYM | ...Crude Oil Jul 10 | ...77.35 | ... 0.47 .......(0.6%) |
| GCM10.CMX | ...Gold Jun 10 | ...1,237.50 | ... 2.20 .......(0.2%) |
Sales of previously occupied homes dipped 2.2% in May, suggesting that a boost from gov home-buying incentives is winding down earlier than expected. The National Association of Realtors reported May sales fell to an annual rate of 5.66M. Apr results were revised upward to 5.79M. Expectations were for sales to rise to a rate of 6.12M. Purchases of existing homes increased 2.7% compared with a year earlier & the median price increased 2.7% to $179K from $174K in May 2009. Housing remains mired in the dumps.
Purchases of U.S. Existing Homes Unexpectedly Dropped in May
Purchases of existing homes - 1 year
Mortgage Applications - 1 year
Photo: Bloomberg
The decline in BP (BP) stock has erased more than $1.4B in 300M shares held by 42 state retirement accounts according to Bloomberg. The declines come as public pension funds are struggling to recover from investment losses that averaged 21% last year. The $1.4B lost by the pensions is a small fraction of the $2.4T in funds managed by 100 largest public pensions at the end of 2009 (they account for more than 89% of total public pension value). Calpers, the largest US public pension at $210B, owned 58M shares of BP on Apr 20, the largest holding by a state pension fund. Today the stock fell 67¢, dipping below 30 & flirting with its yearly low of 29. Adding to BP's problems, the first tropical storm of the season is forming & threatens the clean up efforts next week.
BP Oil Disaster Costs U.S. State Pensions $1.4 Billion in Value
Tropical Storm May Pose Threat to BP Spill Cleanup
BP --- 2 years
There is not a lot going on in the markets. Maybe successful traders have started their long holiday weekend very early. The € was down fractionally to $1.22¾, very much off last week's highs as problems with European finances are not going away. Weak home sales is another depressing thought for markets to absorb. Markets will probably drift in the PM & maybe for the rest of the week. At least the MLP fans are happy as they outperform popular averages.
Dow Jones Industrials --- 2 weeks
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