S&P 500 FINANCIALS INDEX
| Value | 201.75 | |
| Change | -2.34 (-1.1%) |
The MLP index fell almost 2 to the 361s & the REIT index dropped 1½ to the 219s. Junk bond funds were mixed at their 2 year highs. Treasury notes dropped, with 10- year yields rising again, on speculation European leaders will bolster the euro area’s most- indebted nations, reducing demand for safety. 2-year note yields touched the highest level in almost 2 months after a report showed the outlook of consumers improved. The yield on the 10 year Treasury bond rose 4 basis points to 2.568%, nearing its highest levels in 3 months.
Treasury yields:
| U.S. 3-month | 0.12% | |
| U.S. 2-year | 0.46% | |
| 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 fell the most in more than 3 weeks on speculation China will raise interest rates, curbing demand growth in the biggest energy-consuming country. Gold fell, also on speculation that China may raise interest rates.
| CLZ10.NYM | ....Crude Oil Dec 10 | ...85.72...... |  2.09 (2.4%) |
| GCX10.CMX | ...Gold Nov 10 | .....1,387.70 | ... 15.40 | (1.1%) |
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Consumer sentiment rose more than expected in early Nov, helped by a slightly better economic outlook & early holiday sales. The Thomson Reuters/University of Michigan's preliminary Nov reading for the index on consumer sentiment came in at 69.3, up from 67.7 in Oct & slightly higher than expectations of 69.0. The reading is just above the 68.2 average for the last 4 months but below the post-recession high of 76.0 in Jun. The survey's one-year inflation expectations measure also gained, edging up to 3.0% from 2.7% last month. The barometer of current economic conditions rose to 79.7 from the Oct reading of 76.6 & also above a forecast of 77.0. A gauge of consumer expectations, meanwhile, rose to 62.7 from 61.9 in Oct. This data is mildly encouraging but the graphs show these figures have a lot more room to climb.
Consumer Sentiment in U.S. Climbed to Five-Month High
Consumer sentiment - 1year
Expectations - 1 year
The G-20 countries refused to back a US push to make China boost its currency's value, keeping alive a dispute that raises fears of a global trade war amid criticism that cheap Chinese exports are costing American jobs. A joint statement including President Obama & China's Hu Jintao tried to recreate the unity from 2 years ago. But deep divisions, especially over the U.S.-China currency dispute, left G-20 officials negotiating on a watered-down statement. In another setback, a free trade agreement was not agreed to this week with South Korea.The US wants a stronger yuan to shrink the US trade deficit with China, which is on track this year to match its 2008 record of $268B, & encourage Chinese companies to sell more to their own consumers rather than rely so much on exports of low-priced Chinese goods. But the US position has been undermined by its own central bank's decision to print $600B to boost a sluggish economy, which is weakening the dollar. Also, developing countries like Thailand & Indonesia fear that much of the "hot" money will flood their markets, where returns are higher. Such emerging markets could be left vulnerable to a crash if investors later decide to pull out & move their money elsewhere. The importance of intl trade relations are growing rapidly & were a drag on stock markets this week.
Photo: Bloomberg
Intel (INTC), a Dow stock, will increase its quarterly dividend as a pickup in personal-computer demand boosts earnings. The div was raised to 18¢ (72¢ annualized) giving a yield of 3.3% (not bad for what used to be thought of as a growth stock). INTC gave guidance that sales this qtr are expected to rise to $11-11.8B. The stock rose 46¢ to 21.66 & has doubled off its lows 2 years ago. .
Intel Boosts Dividend About 14% to 18 Cents a Share
Intel --- 2 years
Stock markets are had a soggy week, the worst week in 3 months. Even the red hot MLPs sold off from record levels. Bond markets are weak despite the Federal Reserve's purchases of Treasuries & commodities are seeing a fair amount of selling. Markets are typically at yearly (if not multi yearly) highs & need time to pause.
Dow Jones Industrials --- 2 weeks
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