S&P 500 FINANCIALS INDEX
| Value | 227.28 | |
| Change | -3.88 (-1.7%) |
The MLP index was down ½ to the 378s (from its record highs) & the REIT index fell 1+ to the 235s. Junk bond funds were weak while Treasuries were lower. The yield on the 10 year Treasury plunged 8 basis points to 3.51% & is down from 3.75% less than 2 weeks ago. Nervous money likes Treasuries.
Treasury yields:
| U.S. 3-month | 0.09% | |
| U.S. 2-year | 0.72% | |
| U.S. 10-year | 3.51% |
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
10-year Treasury Yield Index --- 2 weeks
Oil surged to the highest level in more than 2 years as intensifying violence in Libya fueled concern that supplies may be disrupted from the holder of Africa's largest crude reserves. In earlier trading oil was above 92, a key resistance level. This is the 4th time that a 92+ ceiling has held. But with more unrest in Libya, it could take out that high in the next day or 2. In the last month, gold has been strong (up more than 90 from its lows last month) on its traditional role as a safe haven.
| CLH11.NYM | ...Crude Oil Mar 11 | ...91.65 | ..... 5.17 (6.0%) |
| GCG11.CMX | ...Gold Feb 11 | .......1,400.30 | ... 12.10 | (0.9%) |
Gold Super Cycle Link! Click Here
Photo: Bloomberg
The Consumer Confidence Index rose in Feb to its highest point in 3 years as consumers are feeling more positive about their income prospects & the direction the economy is headed. The Conference Board's Consumer Confidence Index climbed to 70.4 this month, up from a revised 64.8 in Jan, hitting its highest level since Febr 2008. It was the index's 5th consecutive monthly increase & topped expectations of a reading of 65.0. However, the reading is still below the 90-plus readings that signals a stable economy. Consumers' assessment of current business conditions improved only moderately in Feb & their feelings about near-term job prospects were mixed.
U.S. Consumer Confidence Rose in February to Three-Year High
Photo: Bloomberg
Home prices in a majority of major cities tracked have fallen to their lowest levels since the housing bubble burst. The Standard & Poor's/Case-Shiller index fell in Dec from Nov in all but one of the 20 cities it tracks. The 20-city index declined 1%. The only market to see a gain was Washington.
11 of the markets hit their lowest point since the housing bust, in 2006 & 2007: Atlanta, Charlotte, N.C., Chicago, Detroit, Las Vegas, Miami, New York, Phoenix, Portland, Ore., Seattle & Tampa, Fla.
The damage from the real estate bubble now spreads well beyond the Sun Belt, where new homes cropped up at a frantic pace during the mid-2000s. In many places, prices are expected to keep falling for at least the next 6 months. Some of the worst declines are in cities hit hard by foreclosures & high unemployment, including Detroit, Phoenix & Tampa. Many are holding off buying or selling homes because they fear the market hasn't hit bottom yet. A large number of homes that aren't selling are contributing to a second wave of price declines since the boom years. Many of them have been vacant for months. The Case-Shiller report measures home price increases & decreases relative to prices in Jan 2000 & gives an updated 3-month average for the metropolitan areas it looks at.
Home Prices in 20 U.S. Cities Declined 2.4% From Year Earlier
Apple (AAPL) said the next version of its iPad tablet computer will be delayed as maker Hon Hai faces production bottlenecks due to the device's new design. A Taiwanese broker said in the next version of iPad would come out 2 months later than last the first version, which launched in Apr 2010. New issues are being encountered with the new production process after AAPL made design changes & it's taking time to resolve them. Can you spell, "Uh-Oh?" This delay implies iPad shipments would be 23M this year, down from an original forecast of 30.6M. However, other analysts are less concerned by delays. Sources have previously said the new model would have cameras on the front & back & would be slimmer & lighter with a better resolution display than the first iPad. The stock fell 7 & is down 20 from its record highs set last week
Apple --- YTD
The Mideast has become unstable in the last few weeks. One country after another is seeing civil unrest & nobody knows where this will take us. Stock markets have been ignoring the news, instead focusing on an improving economy in the US & around the world. But Libya is getting more attention because it supplies almost 2M barrels of oil every day. Oil markets know there is a glut of oil despite record cold temps in the northern hemisphere, but a disruption from a major supplier could do a lot of damage fast. Dow is extremely overbought, bulls will accept a mild pullback today. However uncertainty is on the rise & stock markets don't like to see that.
Dow Jones Industrials --- 2 weeks
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