Markets waffle after drop in consumer sentiment

Stocks continue to flounder around. Markets began higher but drifted lower looking for direction. Dow is down 2, advancers ahead of decliners 3-2 & NAZ gained 8. Bank stocks were down only marginally.


S&P 500 FINANCIALS INDEX

Value	197.44
Change	-0.12 (-0.1%)

The MLP index fell 1 to 328 & has been going nowhere for a week. At least it's not far from the 2010 high of 335. The REIT index was up a fraction in the 213s. Junk bond funds were little changed & the VIX was up ½ to the 22s. The € slipped ½ a penny to just above $1.30 while Treasuries gained on increased worries about sovereign debt problems in Europe. The yield on the 10 year Treasury bond was off 2 basis points to 2.72%. Not much happening with these securities.

Treasury Securities

U.S. 3-month		0.15%
U.S. 2-year		0.46%
U.S. 10-year		2.72%

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks




VIX --- 2 weeks




10-Year Treasury Yld Index --- 2 weeks

Photo: Bloomberg

Oil fell for a 4th day on speculation that the US economic recovery is slowing, reducing fuel demand. But gold climbed to another record for the 3rd time this week on demand for a safe haven from financial turmoil.

CLV10.NYM

...Crude Oil Oct 10

...73.83

... 0.74 .......(1.0%)

GCU10.CMX

...Gold Sep 10

...1,274.80

... 2.90 .......(0.2%)

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Consumer sentiment unexpectedly worsened in early Sep to its weakest level in more than a year, as distress over jobs & finances intensified among upper-income families. The Thomson Reuters/University of Michigan's preliminary Sep reading for consumer sentiment came in at 66.6, down from 68.9 in Aug. The latest figure was the lowest in a year & fell short of the 70.0 forecast. The decline in the sentiment index was recorded among households with incomes above $75K, while confidence among lower-income families improved. The divergence between the 2 income groups likely stemmed from worries over a protracted delay to an extension of federal tax cuts to families with incomes above $250K. The survey's barometer of current economic conditions was 78.4, flat versus 78.3 in Aug & below a forecast of 79.0. The survey's gauge of consumer expectations unexpectedly slipped to 59.1, the lowest since Mar 2009. The measure on consumers' 12-month economic outlook plummeted to 59 in early Sep, the lowest since Apr 2009 & down 10 points from Aug.

U.S. Consumer Sentiment Index Unexpectedly Declines


Consumer sentiment - 1 year




Current conditions - 1 year






Enbridge Energy (EEP) said yesterday that repairs to line 6A were completed & was preparing to safely return the pipeline to service today. EEP launched a website to provide updates & further information about the response to the leak on the 6A pipeline near Romeoville, Illinois at: romeoville.enbridgeus.com.
Seperately, Atlas Pipeline (APL) announced that a $686M deal to sell its Elk City system to EEP has been completed. This move will enable EEP to increase its capacity to move more crude oil in its pipelines to markets in the upper Midwest. EEP rose 42¢ to 54.96.

Atlas Pipeline Partners sells Elk City system for $686 millionat bizjournals.com

News Briefing: Statements from Enbridge News Briefing on Romeoville, Illinois Pipeline Leak, September 16, 2010Marketwire


Enbridge Energy --- 2 weeks





Despite a lot of sideways drifting Dow is up about 150 this week, not bad. European sovereign debt problems & the extension of personal tax rates into next year have largely been ignored. China is being pressured to let its currency rise, but that puts them in a tough spot. Among other issues, they own a ton of US debts & changing the exchange rate would reduce the value of their investment in the US.

Dow Jones Industrials --- 2 weeks

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