Dow fell 106, decliners over advancers 4-1 & NAZ is down 25. Banks are leading the way down, taking the Financial Index down 4+ to the 184s. But it's still having an incredible month, up over 30 from the lows at the start of the month. The MLP & REIT indices are each off a couple of points, but the Oct charts below shows that to be nothing more than routine profit taking. Junk bond funds are flattish while Treasuries in rally mode as stocks sell off. Commodities like oil & gold are also pulling back.
It is reported that Russia is willing to help the EU deal with its debt crisis by investing up to $10B thru the IMF. Of course, European leeders are talking about more than $1T bailout money, so even this only represents token help. An economic adviser to Russian President Dmitry Medvedev, said that Russia could make the money available to prop up the eurozone as part of its activities at the IMF, adding that "European stability is important" to Russia. Russia is not ruling out providing direct aid to individual European countries but Moscow hasn't been approached about it. Emerging economies such as Brazil, Russia, India, China & South Africa have said they would be willing to prop up the IMF & the eurozone, but they also have insisted on a bigger role at the IMF. Talk is cheap, hard to evaluate how much this means.
Russia ready to help EU with debt crisis AP
US companies are beating profit estimates for the 11th straight qtr, enough to revive a bull market that has the optimists claiming this is the start of a major rally. A total of 222 out of 298 S&P 500 Index companies that reported results since Oct 11 have exceeded forecasts for Q3. Price targets for companies in the index suggest the S&P 500 will advance 13% to 1,448 in the next 12 months. Of course, these are the same guys who revised estimates upward last Dec & that didn't work out so well. The advance since Oct. 3 has been led by companies & industries whose earnings are most tied to economic growth. Energy producers & materials companies have rallied more than 26% & financial firms are 55% higher. I'm not so optimistic about the future of the stock market.
U.S. Profits Top Estimates for 11th Qtr
Photo: Bloomberg
The biggest bond gains in almost a decade have pushed returns on Treasuries above stocks over the past 30 years, the first time that’s happened since the Civil War. Fixed-income investments advanced 6.25% in 2011, sharply ahead of the 2.2% rise in the S&P 500 Index. Debt markets are on track to return 7.6% this year, the most since 2002. Long-term gov bonds have gained 11½% a year over the past 3 decades, beating the 10.8% increase in the S&P 500. Traditionally stocks had risen more than bonds over a 30-year period. Stock market buils might want to look at this data.
Say What? In 30-Year Race, Bonds Beat Stocks
Even including today's setback, Dow is up about 1.2K (better than 10%) in Oct. This will rank as one of the best months in the history of the Dow. Markets liked the earnings reports, although I don't consider them all that impressive. The European debt mess drones on, far from being resolved. The supercommittee from congress will give its report shortly on reducing federal deficits & that has the potentiality of getting very ugly with both sides digging in their heals. But bulls are unconcerned & they're in charge, at least for the time being.
ALERIAN MLP Index (^AMZ)
DJ REIT INDEXDJR (^DJR)
Treasury yields:
U.S. 3-month | -0.010% | |
U.S. 2-year | 0.262% | |
U.S. 10-year | 2.210% |
| CLZ11.NYM | ....Crude Oil Dec 11 | ...91.93 | .... 1.39 | (1.5%) |
| GCX11.CMX | ...Gold Nov 11 | .....1,723.00 | ... 23.20 | (1.3%) |
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It is reported that Russia is willing to help the EU deal with its debt crisis by investing up to $10B thru the IMF. Of course, European leeders are talking about more than $1T bailout money, so even this only represents token help. An economic adviser to Russian President Dmitry Medvedev, said that Russia could make the money available to prop up the eurozone as part of its activities at the IMF, adding that "European stability is important" to Russia. Russia is not ruling out providing direct aid to individual European countries but Moscow hasn't been approached about it. Emerging economies such as Brazil, Russia, India, China & South Africa have said they would be willing to prop up the IMF & the eurozone, but they also have insisted on a bigger role at the IMF. Talk is cheap, hard to evaluate how much this means.
Russia ready to help EU with debt crisis AP
US companies are beating profit estimates for the 11th straight qtr, enough to revive a bull market that has the optimists claiming this is the start of a major rally. A total of 222 out of 298 S&P 500 Index companies that reported results since Oct 11 have exceeded forecasts for Q3. Price targets for companies in the index suggest the S&P 500 will advance 13% to 1,448 in the next 12 months. Of course, these are the same guys who revised estimates upward last Dec & that didn't work out so well. The advance since Oct. 3 has been led by companies & industries whose earnings are most tied to economic growth. Energy producers & materials companies have rallied more than 26% & financial firms are 55% higher. I'm not so optimistic about the future of the stock market.
U.S. Profits Top Estimates for 11th Qtr
The biggest bond gains in almost a decade have pushed returns on Treasuries above stocks over the past 30 years, the first time that’s happened since the Civil War. Fixed-income investments advanced 6.25% in 2011, sharply ahead of the 2.2% rise in the S&P 500 Index. Debt markets are on track to return 7.6% this year, the most since 2002. Long-term gov bonds have gained 11½% a year over the past 3 decades, beating the 10.8% increase in the S&P 500. Traditionally stocks had risen more than bonds over a 30-year period. Stock market buils might want to look at this data.
Say What? In 30-Year Race, Bonds Beat Stocks
Even including today's setback, Dow is up about 1.2K (better than 10%) in Oct. This will rank as one of the best months in the history of the Dow. Markets liked the earnings reports, although I don't consider them all that impressive. The European debt mess drones on, far from being resolved. The supercommittee from congress will give its report shortly on reducing federal deficits & that has the potentiality of getting very ugly with both sides digging in their heals. But bulls are unconcerned & they're in charge, at least for the time being.
Dow Industrials (INDU)
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