S&P 500 FINANCIALS INDEX
| Value | 195.28 | |
| Change | 0.78 (0.4%) |
The Alerian MLP Index dropped 3+ (1%, a very big move) after reaching another record close yesterday. Ex-distributions are a drag, but most of the decline is due to profit selling. The REIT index fell 2½ to 220 & junk bond funds were generally a little lower. Treasury 10-year bonds dropped for a 6th day, the longest in 2 years on speculation a Federal Reserve program to boost the economy may be gradual. The yield rose 6 basis points to 2.69% & is approaching the 2.80+% high almost 2 months ago.
Treasury yields:
| U.S. 3-month | 0.13% | |
| U.S. 2-year | 0.40% | |
| U.S. 10-year | 2.68% |
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
10-Year Treasury Yield Index --- 2 weeks
Oil was flat but gold declined for a 2nd day as a stronger dollar curbed demand for the metal.
| CLZ10.NYM | ...Crude Oil Dec 10 | ...81.19 | .... 1.36 (1.7%) |
| GCV10.CMX.... | Gold Oct 10 | ......1,324.00 | .... 14.00 | (1.1%) |
Gold Super Cycle Link! Click Here
Photo: Bloomberg
Sales of new homes improved last month after the worst summer in nearly half a century, but not enough to lift the struggling economy. The Commerce Dept reported new home sales in Sep grew 6.6% from the prior month to an annual pace of 307K. Even with the increase, the past 5 months have been the worst for new home sales on records dating back to 1963. New home sales have risen 9% from the bottom in May but are still down 78% from their peak sales rate of nearly 1.4M in Jul 2005. A healthy sales pace is around 800K. Builders are competing with millions of foreclosures & other distressed properties that show no signs of abating. The median sales price was $223K, up 3.3% from a year earlier.
Sales of U.S. New Homes Increased Again in September
New home sales -- 1 year
Procter & Gamble (PG), a Dow stock & Dividend Aristocrat, reported betgter-than-expected quarterly profit as new products & strength in emerging markets spurred sales volume growth. Cost cuts also boosted profits in a sluggish global economy that is pushing consumers to buy lower-priced products in some categories. PG expects full-year EPS of $3.91-4.01, excluding special items, about what analysts are expecting ($3.97). "During the quarter we still were very successful on premium-priced items like Gillette ProGlide, which is a 15 percent price premium, and other premium-priced items," CEO Bob McDonald said. "But then there was also some trading down as you would expect within categories." PG developed markets grew below expectations of 1%, while developing markets grew 8 times as fast. EPS was $1.02 in its Q1 ended Sep 30, below $1.06 last year & $1.00 expected by analysts. Revenue rose 2% to $20.1B. However, volume, a measure of products shipped that factors out currency fluctuations & price changes, rose 8%. The stock was up only a penny & has been flattish during the market rally over the last 2 years.
P&G First-Quarter Profit Falls 6.8%, Tops Analysts' Estimates
Procter & Gamble -- 2 years
Today's down draft is nothing serious for the bulls, to be expected. Dreary home sales are the main reason for the selling. Dow has been going nowhere for a couple of weeks, not been able to break thru 11K in a meaningful way. Earnings season is winding down with big oils & retailers getting ready to report. One encouraging sign for the bulls is that Treasury rates appear to have bottomed out. But higher rates may be a kick in the head for MLPs after the index has already gained an amazing 65 YTD.
Dow Jones Industrials --- 2 weeks
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