S&P 500 FINANCIALS INDEX
| Value | 206.43 | |
| Change | -2.99 (-1.4%) |
Profit taking in MLPs brought the MLP index down 1½ to just under 360 & the REIT index fell 2½ to 228. Junk bond funds rose on continued demand for their high yields. Treasuries were higher, as the yield on the 10 year Treasury bond dropped 2 basis points to 2.52%.
Treasury yields:
| U.S. 3-month | 0.12% | |
| U.S. 2-year | 0.38% | |
| U.S. 10-year | 2.52% |
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
10-Year Treasury Yield Index --- 2 weeks
Weak stock markets have been dragging down oil & gold. But oil remains at its 2 year highs while gold is coming off its record levels.
| CLZ10.NYM | ...Crude Oil Dec 10 | ...86.34 | ... 0.51 | (0.6%) |
| GCX10.CMX | ...Gold Nov 10 | .....1,388.10 | ... 9.20 | (0.7%) |
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US Treasury Secretary Tim Geithner refrained from pushing for current-account targets & China hailed the potential effect of Federal Reserve (FED) easing at a finance ministers’ meeting days before the Group of 20 (G20) summit. Policy makers from Asia to South America have warned that the FED decision to pump liquidity into the US will depress the dollar (which it is doing) & spark flows of capital to emerging markets that threaten asset-price bubbles. This suggests there may be a bit more accord reather than the conflict which had been expected. China’s response to the FED quantitative easing continued , with Vice Finance Minister Zhu Guangyao saying it will provide a “shock” to the global economy & increase “hot money” flows to emerging economies. Zhu said the US hasn’t “fully realized” the possible impact of the policy, which China hopes will help the global economy.
G-20 Spat Risk Eases as U.S. Eschews Pushing Targets
Photo: Yahoo
McDonald's (MCD), a Dow stock & Dividend Aristocrat, same US store sales rose 5.5% in Oct, in sharp contrast to a 0.1% dip in the prior month. Worldwide sales at restaurants open at least 13 months climbed 6.5%. That was slightly above McDonald's prior forecast of a 5-6% increase. In the US, popular menu items included Chicken McNuggets, McGriddles & McCafe beverages, all of which came with pieces for the Monopoly game. Monthly results were also healthy in Europe, where the sales metric climbed 5.8% with the greatest strength in France, the UK & Russia. The figure increased 5.6% for the Middle East, Africa & Asia/Pacific, with Japan, China & Australia reporting good sales growth. Systemwide sales rose 7.4% for the month, on a constant currency basis sales increased 7.8%. YTD US same store sales sales climbed 3.8%, up 4.9% in Europe & gained 6.1% for the APMEA region. Total revenue for restaurants open at least 13 months increased 5.2%. Despite the good news the stock fell 50¢.
McDonald's October Sales Rise 6.5% as Monopoly Lures Consumers
To learn more about McDonald's
McDonald's --- 2 years
Stocks have been on a tear all year & are entitled to a rest. Announcements from the G-20 meeting in Asia should be drivers for the markets this week. Dow is up 1800 from its lows 4 months ago & the only supporting news has been that a double dip recession has been largely ruled out. But unemployment & housing remain in the dumps.
Dow Jones Industrials --- 2 weeks
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