S&P 500 FINANCIALS INDEX
| Value | 214.24 | |
| Change | -1.00 (-0.5%) |
The MLP index rose a fraction to the 358s while the REIT index was flat in the 221s. Junk bond funds were inching higher. But there was selling in Treasuries, taking the yield on the 10 year Treasury bond up 4 basis points to 3.38%.
Treasury yields:
| U.S. 3-month | 0.13% | |
| U.S. 2-year | 0.66% | |
| U.S. 10-year | 3.38% |
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
10-Year Treasury Yield Index --- 2 weeks
Oil was flat but could resume climbing in the new year as cold weather is expected to be with us (including Europe & China) for at least a month. Sellers are cashing in gold profits after its 26% gain YTD.
| CLG11.NYM | ...Crude Oil Feb 11 | ...90.61 | ..... 0.13 (0.1%) |
| GCZ10.CMX | ...Gold Dec 10 | .....1,375.60 | ... 11.20 | (0.8%) |
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Photo: Bloomberg
Last week jobless claims fell & the number on unemployment rolls dropped to a 2 year low, suggesting the labor market is improving. Filings for jobless insurance declined by 3K to 420K, matching expectations, according to the Labor Dept. Those collecting benefits fell in the previous week to 4.06M. The 4 week moving average rose to 426K last week from 423K in the prior week. The number continuing to receive jobless benefits declined 103K. The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs. Those who’ve used up their traditional benefits & are now collecting emergency & extended payments decreased 152K to 4.68M in the prior week. Improvement looks good but it's coming in small steps which are of little help to the millions unemployed & underemployed.
Jobless Claims in U.S. Decreased to 420,000 Last Week
Weekly jobless claims - 1 year
4 week moving average - 1 year
# continuing to receive benefits - 1 year
Orders for capital goods outside of the volatile transportation category in Nov rose by the largest amount in 8 months on strong demand for computers, appliances & heavy machinery. Total orders for durable goods dropped 1.3% according to the Commerce Dept from sagging demand for aircraft & autos. But excluding transportation, orders rose 2.4%. A widespread gain outside of transportation is an encouraging sign that factories will be ramping up production & hiring more workers in coming months. Part of the strength in Nov came from a 2.6% rise in orders for nondefense capital goods excluding aircraft. This category is seen as a good proxy for business investment plans. The big increase, the best since Aug, was a sign that businesses remain optimistic enough about the future to expand & modernize. Bigger picture, the 1.3% overall decline in orders was the 2nd straight monthly setback following a 3.1% drop in Oct, leaving orders at a seasonally adjusted $193.7B in Nov (20.7% higher than the recession low hit in Mar 2009). Orders for computers & related products rose 9.4% & demand for communications equipment, a category that includes high-tech communications satellites, rose 5.1%. This report is another one indicating the recovery continues but at a moderate pace.
Demand for U.S. Capital Goods Rebounds as Spending Holds Up
Orders for durable goods -1 year
Orders less transportation - 1 year
The favorable jobless & new factory orders reports should have inspired buying. But many are away & others are busy with last minute holiday shopping. Markets should continue in their sideways motion for the balance of the week.
Dow Jones Industrials --- 2 weeks
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