S&P 500 FINANCIALS INDEX
| Value | 185.36 | |
| Change | 3.28 (1.8%) |
High yielders are doing well in today's up market. The Alerian MLP Index rose 4 to 310 while the REIT Index gained 2½ to the 186s. Junk bond funds were modestly higher (about 1%). The VIX, volatility index, fell 2 to 28 as 30+ is proving to be a ceiling which is holding. Treasuries were flattish. The yield on the 10 year Treasury slipped a fraction of a basis point to 2.97% remaining in very low territory which is troubling for stock markets.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index -- 2 weeks
VIX --- 2 weeks
10-Year Treasury Yld Index - 2 weeks
Higher stock markets were a plus for oil, but it remains in its longer term sideways trading zone. Gold sold off substantially, hurt by a sense European countires are getting their financial houses in order. But gold has substantial value over the long term as more money is transferred to Asia where they have a higher regard for the commodity as a store of value.
| CLQ10.NYM | ...Crude Oil Aug 10 | ...73.47 | ... 1.33 .......(1.8%) |
| GCN10.CMX | ...Gold Jul 10 | ...1,192.30 | ... 15.10 .......(1.3%) |
The service sector grew more slowly in Jun, another sign growth could weaken in the 2nd half of 2010. The Institute for Supply Management (ISM) said its index tracking service-oriented companies dipped to 53.8 in Jun from 55.4 in May (a reading above 50 indicates expansion) & compares with expectations of 55.0. The index of new orders for non-manufacturing industries declined to 54.4 in Jun (the lowest in 2010) from 57.1 in May. ISM also said employers' plans to hire declined in Jun after growing in May, the first time in 28 months.
ISM Non-Manufacturing Index in U.S. Fell to 53.8 in June
Non-manufacturing index - 1 year
Index for new orders - 1 year
BP (BP) said it has no plans to issue new shares to help pay for the oil spill. Its shares were boosted amid rumors of interest from sovereign wealth funds. BP said it "is always happy to welcome new shareholders or existing shareholders who wish to increase their shareholdings, but there's no current plans to issue new equity to anyone." Recent reports have suggested that a number of Middle East wealth funds are considering purchasing a stake in BP, helping calm fears of a full takeover. BP is up 2.02 to 31.37.
BP --- YTD
This is a day for the stocks to have their day in the sun. Oversold markets brought out buyers. The € rose over $1.26 on more optimism about the debt problems in Europe being resolved. But the recovery in the US is only lumbering along & there is more talk about a double dip recession. Aloca (AA) Q2 earnings are coming after the market close next Mon. Treasury yields continue at very low rates, not good for the stock markets.
Dow Jones Industrials -- 2 weeks
]
No comments:
Post a Comment