S&P 500 FINANCIALS INDEX
Value 198.52
Change 0.18 (0.1%)
Buying in MLPs continues, taking the Alerian MLP Index up 1½ to the 343s, NEW RECORD TERRITORY! The REIT index slipped 1½ to the 215s, near the 2010 high of 219 but far from record levels above 300. Jund bond funds were mixed near their highs for the last 2 years. Treasuries rose, sending 5-year yields to a record low, as another report showed companies in the US unexpectedly cut jobs in Sep, fueling speculation the Federal Reserve will increase purchases of Treasury debt. 5-year yields dropped 6 basis points to 1.14% after touching 1.1206%, the lowest on record! The yield on the 10 year Treasury bond plunged 9 basis points to 2.39%, a new low since rising off the record lows in early 2009.
Treasury yields:
U.S. 3-month 0.11%
U.S. 2-year 0.38%
U.S. 10-year 2.39%
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
10-Year Treasury Yld Index --- 2 weeks
Oil was flattish after recent gains taking it to the high end of its trading range (80+) for the last year. But gold is RED HOT! It rose to a record into the 1350s on speculation that gov spending & low interest rates to revive economic growth will weaken currencies, boosting demand for this gold as an alternative asset. More quantitative easing means will bring lower interest rates making gold a more attractive holding
CLX10.NYM ...Crude Oil Nov 10 ...82.76 ...0.06 (0.07%)
GCV10.CMX ...Gold Oct 10 ...1,346.80 ...7.90 (0.59%)
Gold Super Cycle Link!
52 Week High Friday Rule!
China & other emerging powers are offsetting weakness in the US & Europe to lift the global economy through next year according to the IMF. It predicted the world economy will expand 4.8% this year & 4.2% next year surpassing last year's 0.6% decline (the worst since World War II). This forecast assumes growth for this year will be 0.2% more than the previous estimate in Jul. It predicts the US economy will grow 2.6% this year, below its previous estimate of 3.3%.
IMF sees global economy gaining, US growth slowing- AP
39K jobs were lost in Sep compared to Aug according to Automatic Data Processing (ADP) in its monthly payrolls survey, more than a forecast of only 18K positions. A loss of 45K jobs in goods-producing industries was offset slightly by 6K new jobs in services businesses. ADP also said it revised the Aug report from an initial estimate of a decline of 10K to a gain of 10K jobs. In addition, placement firm Challenger, Gray & Christmas said its own survey of businesses showed the pace of layoffs remained virtually unchanged in Sep with 37K announced job cuts, a 7% rise from Aug. Challenger’s report said the Sep cuts are the 2nd lowest announced cuts of this year & that Aug cuts were the lowest since Jun 2000. More muddled news on the jobs front, on balance it was not positive ahead of the big jobs report on Fri.
ADP Estimates U.S. Companies Cut 39,000 Jobs in September
Monsanto (MON) reported a smaller loss in its FY-Q4 than a year ago on higher revenue. The qtr is typically a money loser for MON which makes more of its money in spring & summer months as farmers are ordering seed. The company lost 26¢ a share in the qtr ended Aug 31, better than its loss of 43¢ last year. Revenue rose to $1.95B from $1.88B a year ago. The loss was 9¢ a share from its ongoing business & forecasts were for a loss of 6¢ per share after factoring in the one-time costs. Net income for the full year inched down to $1.128B from $2.133B a year ago as revenue fell to $10.5B from $11.72B a year earlier. The seeds & genomics division represented more than 70% of net sales for the year, which offset losses from its popular herbicide Roundup. Generic competition from China & elsewhere has gutted Roundup's profit margin & contributed to a 10% decline in net sales for FY2010. The stock was up 1.45 (3%).
Monsanto Posts Loss Wider Than Analysts' Estimates
Monsanto --- 2 years
After reaching interim highs yesterday, the follow thru today for stocks was minimal. Economic news did not provide guidance & the jobs report on Fri looms large. But MLP unit holders are happy to see the index break thru to record levels. Gold & Treasury holders are also very happy. I'm still trying reconcile the idea of rising stock prices along with soaring safe haven investments like gold & Treasuries.
Dow Jones Industrials --- 2 weeks
Diversification Doesn't Work
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