S&P 500 FINANCIALS INDEX
| Value | 221.28 | |
| Change | -0.21 (-0.1%) |
The MLP added 1+ to the 371s, another record high. Its yield is below 6.1% from an overbought market. The REIT index was up a fraction in the 223s little changed in recent months. Junk bond funds had a modest advance, but still off their yearly highs reached 3 months ago. Treasuries were quiet ahead of an auction today. The yield on the 10 year Treasury went up 1 basis point to 3.37%.
Treasury yields:
| U.S. 3-month | 0.15 | |
| U.S. 2-year | 0.61 | |
| U.S. 10-year | 3.37 |
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
10-Year Treasury Yield Index --- 2 weeks
Oil was little changed near a 27-month high as US jobless claims jumped in Oct & the € surged against the dollar. Gold fell for the first time this week after gov bond sales in Portugal & Spain eased concern that the European debt crisis will spread.
| CLG11.NYM | ...Crude Oil Feb 11 | ...91.36 | .... 0.50 | (0.5%) |
| GCF11.CMX | ...Gold Jan 11 | .......1,381.00 | ... 4.70 | (0.3%) |
Gold Super Cycle Link! Click Here
Photo: Bloomberg
Jobless claims jumped to their highest level since Oct while food & energy costs boosted producer prices, pointing to lingering headwinds for an economic recovery. Despite the more positive outlook for growth in recent weeks, the job market still appears to be struggling. The number filing for unemployment benefits rose unexpectedly to 445K last week from 410K in the prior week,according to the Labor Dept, the biggest weekly jump in about 6 months. It was noted that benefit claims occurred following the holidays, which may have hindered new applications & created a backlog. Without the seasonal adjustment, claims were up by nearly 200K to 770K! The 4 week moving average of new claims rose 5K to 416K. Continuing claims did retreat sharply to 3.88M from 4.13M, offering some hope. But the number on benefit rolls, including extended benefits under emergency gov programs, jumped to 9.19M from 8.77M. Employment data remains glum in the new year.
Jobless Claims in U.S. Rose 35,000 Last Week to 445,000
Weekly jobless claims - 1 year
4 week average - 1 year
# of continuing claims - 1 year
Photo: Bloomberg
The US trade deficit edged down to the lowest point in 10 months as exports (helped by a weaker dollar & rising foreign demand) climbed to the highest level in more than 2 years (a plus for economic growth in the US). The trade deficit narrowed to $38.3B in November, down 0.3% from the Oct revised $38.4B according to the Commerce Dept. Thru the first 11 months of 2010, the deficit is running at an annual rate of $500B (that's huge), 33.5% higher than in 2009, when the deep recession cut into the appetite for imports. The deficit should climb further in 2011 as the US economy recovers & draws in more imported goods. For Nov, exports were up 0.8% to $159.6B, the highest point since Aug 2008, led by higher sales of commercial aircraft, computers & farm products such as corn & wheat. Imports had a smaller gain, increasing 0.6% to $198B, reflecting a 6.7% jump in petroleum imports, which climbed to $27.2B. The average price of a barrel of crude oil rose to $76.81 in Nov which will climb higher in coming months. The deficit with China, the largest with any country, rose 0.5% to $25.6B in Nov & is on track to set an all-time annual high. Thru Nov, the deficit with China was running at an annual rate of $275.3B, which would exceed the previous record of $268B set in 2008. Exports in Nov to China reached a monthly record of $9.5B but imports from China rose as well, climbing to $35.1B.
Trade Deficit in U.S. Unexpectedly Narrows to 10-Month Low
US trade deficit - 1 year
Markets are quiet ahead of earnings reports. Intel INTC), a Dow stock, earnings are due shortly. The chart below shows a flat Dow's performance so far in 2011. Yesterday's advance put it slightly above the level after the surge on opening day. But it's not impressive. Earnings will have to give it the lift bulls are calling for & that is in doubt. Meanwhile MLPs continue on their winning ways.
Dow Jones Industrials --- 2 weeks
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