S&P 500 FINANCIALS INDEX
| Value | 187.43 | |
| Change | -2.49 (-1.3%) |
After starting higher the Alerian MLP Index slipped a fraction to the 323s, nothing serious for the bulls. The REIT index fell 1 to the 189s while junk bond funds were mixed. The VIX, volatility index, gained 1 to the 27s & is up 4 in the last week. The yield on the 10-year Treasury bond was down another basis point to 2.94%, getting near its recent lows of 2.9%.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
VIX --- 2 weeks
10-Year Treasury Yld Index --- 2 weeks
Oil was higher as traders eyed a modest rebound in stock markets despite continuing economic uncertainty. I can't get a price from Yahoo on gold, but Bloomberg shows it fell another 10 to 1177 as sluggish markets are hurting.
| CLQ10.NYM | Crude Oil Aug 10 | ...76.92 | ... 0.91 .......(1.2%) |
The National Association of Home Builders/Wells Fargo confidence index fell to 14 this month, the lowest level since Apr 2009, from 16 in Jun (readings lower than 50 mean more respondents said conditions were poor). The gauge, which was first published in January 1985, averaged 15 last year. Lower sales following the April 30 expiration of a tax deadline is lasting longer than projected. Mounting foreclosures are adding to inventory & the unemployment rate is forecast to end the year at 9.5%. In addition, builders are reporting continuing hesitancy regarding home purchases due to uncertainty in the overall economy & job markets. A housing recovery will take time to develop.
Homebuilder Confidence in U.S. Falls to One-Year Low
Homebuilder confidence index - 1 year
Moody's cut the credit rating for Ireland, warning that the country faces a slow climb out of recession as the cost of a rescue of its banking sector mounts. The rating was cut one-notch to Aa2 & Moody's also changed its outlook to stable from negative. This put Moody's on par with Standard & Poor's AA rating & still one notch above Fitch. The € took the news fairly well, it's above $1.29½.
Halliburton (HAL) reported Q2 profits soared 83% as natural gas drilling activity picked up in the US beating expectations.. The company was hired by BP (BP) to seal the Macondo well before it blew up & has seen its stock tumble 17% since the Apr explosion. While the US ban on deepwater exploration will cut into profits, HAL has been able to boost earnings anyway through its land-based business, particularly operations involving horizontal drilling of shale gas deposits. In Q2 HAL had EPS of 53¢ per share (expectations were 37¢), up from 29¢ last year. Revenue jumped 26% to $4.39B. The gov moratorium on deepwater exploration in the Gulf "will usher in a new regulatory climate and will have a profound impact on how deepwater drilling is performed," said Dave Lesar, CEO, but HAL is moving people & equipment out of the Gulf. The suspension of deepwater drilling will cost the company another 5-8¢ per qtr in H2. The stock rose 1.22 to 28.73.
Halliburton --- 2 years
BP (BP) & the gov can't agree on the next step in dealing with BP's well. Maybe those forces are weighing the markets down. The bulls tried to take the markets higher, but failed. Dow keeps sloshing around 9 month lows, not able to break significantly above the 10K floor. Early earnings reports are not giving markets the lift they need.
Dow Jones Industrials --- 2 weeks
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