S&P 500 FINANCIALS INDEX
| Value | 195.68 | |
| Change | -2.77 (-1.4%) |
The Alerian MLP Index keeps pushing to reach a new yearly high. Today it's up 1 to the 332s, needing only 4 more to reach a new 2010 high & 11 for an all time record. The REIT index pulled back another 2 to the 213s after touching its 219 yearly high on Mon. Junk bond funds were flattish to higher while the VIX was up a fraction in the 22s. The weak dollar sent the € up another 1½ pennies to $1.34 (essentially at its interim high in early Aug). Treasuries turned in a major rally on expectations the Federal Reserve will buy more bonds. The yield on the 10 year Treasury bond fell 6 basis points to 2.53%, near its recent low levels.
Treasury Yields
| U.S. 3-month | 0.15% | |
| U.S. 2-year | 0.42% | |
| U.S. 10-year | 2.53% |
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
VIX --- 2 weeks
10-Year Treasury Yld Index --- 2 weeks
Photo: Bloomberg
Oil recovered after yesterday's decline but is still in the middle of its longer term 70-80 trading zone. Gold climbed to a record $1,298 after the Federal Reserve said it was willing to ease monetary policy further to boost the US economy, triggering a slump in the dollar.
| CLX10.NYM | ...Crude Oil Nov 10 | ...75.53 | ... 0.56 .......(0.8%) |
| GCU10.CMX | ...Gold Sep 10 | ...1,293.50 | ... 21.10 .......(1.7%) |
Adobe (ADBE) plunged when the software maker forecast soft demand for its flagship software package. The company said while demand for Creative Suite 5 (CS5) continued to be positive, sales in Japan & to US education customers could be weaker-than-expected. ADBE expects current qtr revenue in its creative solutions business, including CS5, to be flat to slightly down sequentially. Estimates are that Q4 business will also have a sequential decline, which is not the normal seasonal pattern. The stock received numerous downgrades today & fell 6.83 (21%).
Adobe Plunges the Most in Eight Years After Sales Outlook Misses Estimates
Adobe --- 1 month
General Mills (GIS) Q1 net income rose 12% on higher prices & stronger sales of products such as Cheerios, Cinnamon Toast Crunch & Yoplait yogurts. "Economic conditions remain relatively weak and consumer confidence is still pretty low, so it is a challenging time," said Ken Powell, . "But as we've said before, it's still a great time to be in the food business." GIS reported EPS of 70¢ for its Q1, up from 62¢ last year. On an adjusted basis, the company earned 64¢, a penny better than expected. GIS revenue edged up 1% to $3.53B, slightly short of expectations of $3.57B. Revenue in its US business grew 6%. Intl revenue was up slightly (less than 1%), but, excluding the impact of unfavorable foreign exchange, rose 4%. There were big gains for its cereals, snacks & Yoplait yogurt business, but Pillsbury & baking products reported revenue declines. Advertising spending was increased 8% in the qtr & GIS said it would continue to reinvest in the creation & marketing products to drive future growth. The company maintained that its guidance of adjusted EPS at $2.46-2.48 for fiscal 2011. The stock was up 90¢ (more than 2%).
General Mills First-Quarter Profit Rises 12% on Sales of Cereals, Snacks
General Mills --- 2 years
Photo: Yahoo
Microsoft (MSFT), a Dow stock, raised its quarterly div 23% to 16¢ per share, its first increase in 2 years. The company, whose stock is trading at the same level it was 8 years ago, has been under pressure to distribute more of the $37B in cash. In addition, its board approved to sell up to $6B in additional debt to fund working capital, capital expenditures, stock buybacks & acquisitions. The bonds may be sold as soon as today. MSFT is one of only a handful of companies to earn a AAA credit rating. The stock fell 63¢ on the news.
Microsoft Plans Bond Offering After Boosting Dividend
Microsoft --- 2 years
There's not a lot happening, or maybe there is! Stock markets meander but gold & Treasuries are rocketing ahead. Money can not keep going into all 3 areas very long. At least one will have to experience selling.
Dow Jones Industrials --- 2 weeks
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