Markets edge higher after release of Federal Reserve minutes

A late day rally brought stocks back into the black, but gains were limited.  Dow rose 10, advancers ahead of decliners 4-3 & NAZ gained 15.  Bank stocks were also higher in the PM, not disturbed by the growing foreclosure mess, taking the Financial Index near 200.  However, the chart shows it has gone thru that level many times, muting its significance.

S&P 500 FINANCIALS INDEX

Value	199.91
Change	2.49  (1.3%)

The Alerian MLP recovered earlier losses, gaining all of 9 pennies to 349.20, ANOTHER RECORD as its spectacular 12% rise in the last 2 months continues.  Even gold took time to pause today.  REITs rose taking the index to the 218s, just below its yearly high although far from the 300+ record levels when the companies generally were paying record dividends.  Treasuries declined in the PM.  The yield on the 10 year Treasury bond rose 4 basis points to 2.42%, still extremely low.

Treasury yields

U.S. 3-month		0.11%
U.S. 2-year		0.36%
U.S. 10-year		2.42%

Alerian MLP Index   ---   2 months




Dow Jones REIT Index   ---   2 months




10-Year Treasury Yield Index   ---   2 months





Oil fell below $82 a barrel on speculation that US inventories rose to a 3 month high last week & signs that OPEC will leave output targets unchanged. Gold declined for the first time in 3 days as a rebound by dollar curbed demand for the metal as an alternative asset.

CLX10.NYM

.....Crude Oil Nov 10

.....81.66

... 0.55   (0.7%)

GCV10.CMX

.....Gold Oct 10

........1,345.70

.... 7.60

(0.6%)

$$Gold Super Cycle$$  

Click Here

Federal Reserve
Photo:  Yahoo


Federal Reserve (FED) officials believed in Sep the struggling recovery could need more help soon & discussed several ways to provide support, including the possible adoption of a price-level target. They had a "sense that (more) accommodation may be appropriate before long."  In its minutes, officials discussed several approaches to aiding the economy but focused on buying additional longer-term Treasury securities & ways to nudge the public into expecting higher levels of inflation in the future.  The FED has kept interest rates near zero since Dec 2008 & has bought about $1.7T (that's T as in trillion!) in mortgage-linked securities & longer-term gov debt to lower other borrowing costs to help the economy recover from the worst recession since the 1930s.  They also discussed the possibility of targeting a path for GDP growth.

Fed Officials Were Prepared to Ease `Before Long,' Minutes Say



Under heavy pressure from the oil industry & others in the Gulf Coast, the moratorium on deep water drilling was lifted.  The 6 month ban had been scheduled to expire Nov 30, but the deadline was moved ahead because new rules imposed after the spill have strengthened safety measures & reduced the risk of another catastrophic blowout.  A federal report said the moratorium likely caused a temporary loss of 8-12K jobs in the Gulf region.  While the ban on exploratory oil & gas drilling is lifted immediately, drilling is unlikely to resume for at least a few weeks.  Drilling companies must meet new safety regulations before they can resume operations -- including a requirement that the CEO of the company is responsible for the well & certifies it has complied with all regulations making that person liable for any future accidents.

• Administration lifts 6-month oil drilling freeze- AP

Michael Dell, CEO of Dell (DELL), may buy his company or pay a “huge” special dividend. Michael Dell is more than 3 years into a turnaround effort at the 3rd-largest personal-computer maker & said in Jun that he has considered taking the company private.  “This transformation is incomplete,” Dell said at the time. “If I had to give it a grade, it’d give it an incomplete.”  The stock gained 19¢ today but has been flat after falling in the early part of the last 3 years.

Dell CEO May Buy the PC Maker or Pay `Huge' Special Dividend


Dell   ---   3 years





This was another indecisive day.  MLPs remained at their record levels while REITs & junk bond funds are at or near yearly highs at the same time Treasury yields are at or near record lows.  This disconnect could spell trouble down the road.

After the close, Intel (INTC), a Dow stock, reported a 59% jump in profits.  Quarterly EPS was 52¢ on sales of $11.1B & margins of 66%, its key metrics.  The stock was up 21¢ in regular trading & another 43¢ to $20.20 in the after market.  This should give the lift for the Dow at the opening bell tomorrow. 

Dow Jones Industrials   ---   2 months

Get your favorite symbols' Trend Analysis TODAY!  

Click Here

Is your Retirement Account Government Proof?  

Click Here

Find out what's inside Trend TV!  

Click Here