Stocks were uncertain where to go. Dow stayed above break even while NAZ traded slightly under water. Dow finished up 25, advancers ahead of declines 4-3 but NAZ fell 15. Bank stocks also remained close to breakeven. The Financial Index gained to 168 but is still 20 below its highs made at the end of Oct.
The MLP index gained 1+ in the 368s & the REIT index was up 2 to go over 220. Junk bond funds were mixed to higher & Treasuries drifted lower. Oil declined on speculation that the reversal of the Seaway pipeline won’t be enough to eliminate a glut in the midwest. Gold held near 1720.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Bloomberg
The new Italian Prime Minister, Mario Monti, won a final confidence vote, granting full power to his gov after pledging to spur growth & reduce debt. The chamber voted 556 - 61 in favor of the new administration, following the Senate’s approval yesterday. Monti wants his gov to last until elections scheduled in 2013, though that depends on retaining the support of parties. The gov will first focus on implementing austerity measures passed by his predecessor that aimed to balance the budget in 2013. It will then take additional steps that may include reinstating property taxes, overhauling the tax system, changing pension rules, trimming the size of the gov & modifying labor laws. He will seek to bundle austerity measures & structural reforms “in one package” to boost the chances of their approval by “different sectors” of society & parliament. “I’ll do everything I can to obtain a social consensus,” he said. Italian bonds gained for a 3rd day. Those are words, now it is time for action.
Monti Wins Final Confidence Vote as Government Moves to Tackle Debt Crisis
Photo: Yahoo
Lead Reps on the supercommittee indicated that no deal is near but lawmakers will work thru the weekend in pursuit of one. The deficit reduction "supercommittee" has until Mon to provide public notice of any agreement, & needs to vote on it by Wed. The panel is charged with producing a plan to reduce future deficits by at least $1.2T over the next decade. If it fails, automatic spending cuts that they want to avoid, kick in. It has been a few weeks since the entire committee met, but smaller groups meet routinely in search of an elusive deal. They will probably come with a just barely good enough agreement which could satisfy low expectations of the markets.
Deficit-Cutting With Taxes Hard Sell to Republicans, Jordan Says
The US economy may end the year growing at its fastest clip in 18 months as analysts increase their forecasts for Q4 just a few months after a slowdown raised concerns. Of course, these are same guys who raised their forecasts a year ago for 2011. The important holiday season for retailers is still uncertain. Next week, new govs in Greece & Italy will be settling in & working to get the finances of their countries squared away. Good luck. Austerity is needed & that will not go down well with the populations. A longer range graph for the Dow shows it has held well after the plunge in Aug. Roughly 11½K has been a key level for the Dow, first serving as a ceiling then as a floor. Now it has returned & probably will test its strength next week. Dow is down 200 in so far in Nov.
Dow Jones Industrial Average
S&P 500 Financials Sector Index
| Value | 167.98 | |
| Change | 1.00 (0.6%) |
The MLP index gained 1+ in the 368s & the REIT index was up 2 to go over 220. Junk bond funds were mixed to higher & Treasuries drifted lower. Oil declined on speculation that the reversal of the Seaway pipeline won’t be enough to eliminate a glut in the midwest. Gold held near 1720.
AMZ Alerian MLP Index
DJR Dow Jones Equity REIT Index
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Treasury yields:
U.S. 3-month | 0.000% | |
U.S. 2-year | 0.282% | |
U.S. 10-year | 2.005% |
| CLZ11.NYM | ...Crude Oil Dec 11 | ....97.45 | ... 1.37 | (1.4%) |
The new Italian Prime Minister, Mario Monti, won a final confidence vote, granting full power to his gov after pledging to spur growth & reduce debt. The chamber voted 556 - 61 in favor of the new administration, following the Senate’s approval yesterday. Monti wants his gov to last until elections scheduled in 2013, though that depends on retaining the support of parties. The gov will first focus on implementing austerity measures passed by his predecessor that aimed to balance the budget in 2013. It will then take additional steps that may include reinstating property taxes, overhauling the tax system, changing pension rules, trimming the size of the gov & modifying labor laws. He will seek to bundle austerity measures & structural reforms “in one package” to boost the chances of their approval by “different sectors” of society & parliament. “I’ll do everything I can to obtain a social consensus,” he said. Italian bonds gained for a 3rd day. Those are words, now it is time for action.
Monti Wins Final Confidence Vote as Government Moves to Tackle Debt Crisis
Lead Reps on the supercommittee indicated that no deal is near but lawmakers will work thru the weekend in pursuit of one. The deficit reduction "supercommittee" has until Mon to provide public notice of any agreement, & needs to vote on it by Wed. The panel is charged with producing a plan to reduce future deficits by at least $1.2T over the next decade. If it fails, automatic spending cuts that they want to avoid, kick in. It has been a few weeks since the entire committee met, but smaller groups meet routinely in search of an elusive deal. They will probably come with a just barely good enough agreement which could satisfy low expectations of the markets.
Deficit-Cutting With Taxes Hard Sell to Republicans, Jordan Says
The US economy may end the year growing at its fastest clip in 18 months as analysts increase their forecasts for Q4 just a few months after a slowdown raised concerns. Of course, these are same guys who raised their forecasts a year ago for 2011. The important holiday season for retailers is still uncertain. Next week, new govs in Greece & Italy will be settling in & working to get the finances of their countries squared away. Good luck. Austerity is needed & that will not go down well with the populations. A longer range graph for the Dow shows it has held well after the plunge in Aug. Roughly 11½K has been a key level for the Dow, first serving as a ceiling then as a floor. Now it has returned & probably will test its strength next week. Dow is down 200 in so far in Nov.
Dow Jones Industrial Average
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