Asian markets sold off 2-4%, but US markets began the day near break even. Then selling returned. Dow fell 42, decliners over advancers 3-1 & NAZ was off 12. Bank stocks are also sliding lower from a small gain in early trading.
The Alerian MLP index dropped 4+ to the 335s but the REIT was up a fraction to 204. Junk bond funds were marginally lower while Treasuries gained on a flight to safety. Oil fell to the lowest level in almost 2 months on concern that Greece will default, leading to slower global economic growth & lower fuel consumption. These same fears drove demand for safe haven gold.
Get the latest market update below:
Factory activity expanded at a faster pace than expected in Sep as production & hiring increased, a sign of resilience in manufacturing despite faltering economic growth. The Institute for Supply Management said its index of national factory activity rose to 51.6 last month from 50.6 in Aug. Sep marks the 26th straight month of expansion in a sector that has shouldered the broader economic recovery. A measure of factory employment rose to 53.8 last month from 51.8 in Aug, while production climbed to 51.2 from 48.6. Call this slightly good news.
ISM Manufacturing Index Rises, Defying Forecasts
Photo: Bloomberg
The Greek gov passed a new budget backed by its creditors, including larger deficits than previously forecast, as the country moves closer to securing an €8B ($10.7B) payout needed to avoid default. The Cabinet also passed €6.6B of austerity measures to cut the 2012 deficit to 6.8% of GDP, missing the 6.5% goal previously set with the EU, IMF, & ECB (known as the troika). Greek bonds fell before European finance ministers gather to consider enhancement’s to the region’s rescue fund. Prime Minister Papandreou adopted the austerity measures under pressure from the troika as the country’s 3-year recession sapped revenue needed to close the fiscal gap. The yield on Greece’s 10-year bond rose 6 basis points to 22.74% & the 2-year yield gained 10 basis points to 62.27! Greece’s measures, which still require parliamentary approval, aim to secure disbursement of the €8B loan payout this month. The extraordinary yields on Greek debt tell it all.
Greece Pledges $8.8 Billion in Austerity
Chrysler 300
Photo: Bloomberg
General Motors US sales rose 20% in Sep because of strong demand for full-size pickups & SUVs. Pickup & SUV sales are generally stronger in the fall. GM & other companies were offering promotions on trucks. GM truck sales climbed 34% from Sep 2010, a much stronger increase than cars (up 12%). Sales across the industry are expected to have risen as more Japanese vehicles fill showrooms after months of earthquake-related shortages but the jump could be short-lived because potential car buyers remain worried about the economy. Chrysler auto sales rose 27.2% on high demand for its new models. Chrysler sold 127K, up from 100K last year. Its top seller was the Dodge Ram which sold 24K pickups, up 45% from Sep 2010.
GM, Chrysler September U.S. Vehicle Sales Beat Estimates on Light Trucks
Markets began the month stronger than was expected after heaving selling overseas. But bears are returning. Apple (AAPL) is expected to announce a new iPhone this week which will test its fans' resolve in a global economic market that is not doing well. Kodak (EK) said it will not file for Chapter 11, the stock almost doubled to $1.50!. Auto sales look good, but that may be more related to temporary factors. The big event is the jobs report on Fri. Expectations are for a meager 60K jobs to be added to the economy (200+K is needed to do much good) & the unemployment rate will remain dreary. Then there's the Greek drama which drones on. Plenty of worries out there for the stock market. Oct could be another rough month.
S&P 500 Financials Sector Index
| Value | 158.60 | |
| Change | -0.45 (-0.3%) |
The Alerian MLP index dropped 4+ to the 335s but the REIT was up a fraction to 204. Junk bond funds were marginally lower while Treasuries gained on a flight to safety. Oil fell to the lowest level in almost 2 months on concern that Greece will default, leading to slower global economic growth & lower fuel consumption. These same fears drove demand for safe haven gold.
ALERIAN MLP Index (^AMZ)
DJ REIT INDEXDJR (^DJR)
Treasury yields:
U.S. 3-month | 0.010% | |
U.S. 2-year | 0.243% | |
U.S. 10-year | 1.866% |
| CLX11.NYM | ...Crude Oil Nov 11 | ...77.73 | ..... 1.47 | (1.9%) |
| GCV11.CMX | ...Gold Oct 11 | ......1,654.50 | ... 34.10 | (2.1%) |
Get the latest market update below:
Factory activity expanded at a faster pace than expected in Sep as production & hiring increased, a sign of resilience in manufacturing despite faltering economic growth. The Institute for Supply Management said its index of national factory activity rose to 51.6 last month from 50.6 in Aug. Sep marks the 26th straight month of expansion in a sector that has shouldered the broader economic recovery. A measure of factory employment rose to 53.8 last month from 51.8 in Aug, while production climbed to 51.2 from 48.6. Call this slightly good news.
ISM Manufacturing Index Rises, Defying Forecasts
The Greek gov passed a new budget backed by its creditors, including larger deficits than previously forecast, as the country moves closer to securing an €8B ($10.7B) payout needed to avoid default. The Cabinet also passed €6.6B of austerity measures to cut the 2012 deficit to 6.8% of GDP, missing the 6.5% goal previously set with the EU, IMF, & ECB (known as the troika). Greek bonds fell before European finance ministers gather to consider enhancement’s to the region’s rescue fund. Prime Minister Papandreou adopted the austerity measures under pressure from the troika as the country’s 3-year recession sapped revenue needed to close the fiscal gap. The yield on Greece’s 10-year bond rose 6 basis points to 22.74% & the 2-year yield gained 10 basis points to 62.27! Greece’s measures, which still require parliamentary approval, aim to secure disbursement of the €8B loan payout this month. The extraordinary yields on Greek debt tell it all.
Greece Pledges $8.8 Billion in Austerity
Photo: Bloomberg
General Motors US sales rose 20% in Sep because of strong demand for full-size pickups & SUVs. Pickup & SUV sales are generally stronger in the fall. GM & other companies were offering promotions on trucks. GM truck sales climbed 34% from Sep 2010, a much stronger increase than cars (up 12%). Sales across the industry are expected to have risen as more Japanese vehicles fill showrooms after months of earthquake-related shortages but the jump could be short-lived because potential car buyers remain worried about the economy. Chrysler auto sales rose 27.2% on high demand for its new models. Chrysler sold 127K, up from 100K last year. Its top seller was the Dodge Ram which sold 24K pickups, up 45% from Sep 2010.
GM, Chrysler September U.S. Vehicle Sales Beat Estimates on Light Trucks
General Motors Company (GM)
Markets began the month stronger than was expected after heaving selling overseas. But bears are returning. Apple (AAPL) is expected to announce a new iPhone this week which will test its fans' resolve in a global economic market that is not doing well. Kodak (EK) said it will not file for Chapter 11, the stock almost doubled to $1.50!. Auto sales look good, but that may be more related to temporary factors. The big event is the jobs report on Fri. Expectations are for a meager 60K jobs to be added to the economy (200+K is needed to do much good) & the unemployment rate will remain dreary. Then there's the Greek drama which drones on. Plenty of worries out there for the stock market. Oct could be another rough month.
Dow Industrials (INDU)
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