S&P 500 FINANCIALS INDEX
| Value | 198.93 | |
| Change | 0.06 (0.0%) |
The MLP index pulled back 1 to 332 & has been flat near 333 for the last week. REITs were strong, the index rose 1½ to 210. Junk bond funds gained. But the VIX popped, up 1 to 23 although remaining at recent levels which are considered moderate. The yield on 10 year Treasury bond rose 1 basis point to 2.83%, essentially at its 18 month lows & not far from the lowest levels in modern times. The € slipped a fraction to $1.32½, still close to its 3 month high.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
VIX --- 2 weeks
10-Year Treasury Yld Index --- 2 weeks
Oil was higher on encouraging word about the economy while gold is doing very little.
| CLU10.NYM | ...Crude Oil Sep 10 | ...81.06 |  0.36 .......(0.5%) |
| GCQ10.CMX | ...Gold Aug 10 | ...1,204.80 | ... 1.40 .......(0.1%) |
Hewlett-Packard (HPQ), a Dow company, announced late on Fri that its CEO, Mark Hurd, one of the country's highest-profile CEOs, had resigned effective immediately. The company said its investigation found Hurd had not violated its sexual harassment policy, but that he had violated its standards of conduct policy. The story took an odd twist when Jodie Fisher, a Hollywood actress who had been employed as a contractor for HP working on customer & executive events, supported Hurd's claims that there had never been a sexual relationship between them. Jody issued a statement, "I was surprised and saddened that Mark Hurd lost his job over this. That was never my intention," the statement said. "Mark and I never had an affair or intimate sexual relationship." Hurd, who is married, failed to tell the board about a personal relationship with a female marketing contractor who was hired by his office. Additionally, he filed inaccurate expense account reports in a bid to keep the relationship secret. Many who knew Hurd's no-nonsense executive style were shocked by the news but he conceded on Fri that "there were instances in which I did not live up to the standards and principles of trust, respect and integrity that I have espoused at HP." The CFO, Cathie Lesjak, will take over as CEO on an interim basis. The stock is down $4 from prior to the announcement, but has found its footing in the 42s this AM.
HP Drops on Hurd Resignation; Lesjak Inherits Slowing Growth
Hewlett-Packard --- 2 weeks
McDonald's (MCD), a Dow stock & Dividend Aristocrat, posted its biggest monthly increase of US same store sales in more than a year, saying its new fruit smoothies & frappes were a hit with customers during a hot & steamy Jul. Sales at restaurants open at least 13 months climbed 5.7% - its biggest monthly increase since it recorded a 6.1% gain in Apr 2009. Overall, the measure rose 7% worldwide, climbing 5.3% in Europe & 10.1% in the rest of the world. The stock rose 1.19 to almost 73, a new record!
McDonald's --- 2 weeks
There is little happening in the markets ahead of the big Federal Reserve (FED) meeting. The FED will likely leave interest rates at historic lows, but could signal plans to restart some stimulus programs, such as its purchase of mortgage-backed securities. Such a move could bring higher stock prices, but the very low Treasury rates keep nagging in the background. The steep yield curve from near zero for the shortest bills to 4% on the 30 year Treasury bond is scary!!
Dow Jones Industrials --- 2 weeks
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