Dow rose 62, advancers over decliners 3-2 & NAZ was up 7. Bank stocks are leading today's advance.
The MLP index is up another 2½ to 383, continuing a nice year end rally. The REIT index was a fraction lower & junk bond funds were mixed to higher. Treasuries sold off, taking the yield on the 10 year Treasury back over 2%. Oil rose, heading for its biggest weekly gain in 10 months. But today oil & gold are doing little in quiet trading.
Photo: Bloomberg
Companies' demand for long-lasting manufactured goods rose by the largest amount in 4 months in Nov, driven by a jump in orders for planes. The Commerce Dept said orders to US factories for durable goods rose 3.8%, the biggest gain since Jul. But core capital goods, a proxy for business investment spending, dropped for a 2nd straight month, falling 1.2%. The declines in business capital goods excluding aircraft raise doubts about a pocket of strength for the economy this year. For Nov, orders in the transportation category rose nearly 15% reflecting a 73% jump in demand for commercial aircraft after 2 straight declines. Orders for military aircraft rose, but demand for motor vehicles & parts edged down after a surge in Oct. Excluding the volatile transportation sector, orders would have risen a more modest 0.3% in Nov, the 3rd straight decline. Factories that make primary metals, such as steel, reported a strong 5.2% increase in demand. Again, moderately good news.
U.S. November Durable Goods Orders Climb 3.8%
Photo: Yahoo
Consumers spent at a lackluster rate in Nov as incomes barely grew, suggesting that Americans may struggle to keep spending more into 2012. Consumer spending rose just 0.1% in Nov, matching the modest Oct increase according to the Commerce Dept. Incomes also rose 0.1%, the weakest showing since a 0.1% decline in Aug. Both spending & income gains fell below expectations. Economists have said that solid increases in spending could boost economic growth in the final 3 months of what has been a disappointing year. The weakness in incomes reflected a decline in wages & salaries, the biggest component of incomes. The sluggish gain in spending was held back by a 0.3% fall in spending on non-durable goods such as food, clothing & gasoline. Spending on durable goods jumped 0.8%, reflected the solid auto sales during the month. More mixed signals about the economic recovery.
U.S. Personal Spending Rises Less Than Forecast
Photo: Yahoo
Congress passed a 2-month payroll tax cut extension 8 days before its scheduled expiration after House Reps dropped their objections. It would extend a 2-percentage-point payroll tax cut, continue expanded unemployment benefits & head off a reduction in Medicare payments to doctors through Feb. But then it's off to another make it up as we go along solution for complex problems. Politicos plan to negotiate on a longer-term extension in the new year. Nobody should be proud of this Scotch-Tape approach!
There is nothing exciting going on in the markets. The extension of the tax & unemployment packages was expected, but nothing was really solved since we will have to go thru this all over again in 2 months. Little noticed are the gains by MLPs. The index needs to reach 390 to match its prior record. I repeat record, something very few securities can claim.
Dow Jones Industrial Average
S&P 500 Financials Sector Index
| Value | 177.06 | |
| Change | 0.82 (0.5%) |
The MLP index is up another 2½ to 383, continuing a nice year end rally. The REIT index was a fraction lower & junk bond funds were mixed to higher. Treasuries sold off, taking the yield on the 10 year Treasury back over 2%. Oil rose, heading for its biggest weekly gain in 10 months. But today oil & gold are doing little in quiet trading.
AMZ Alerian MLP Index
DJR Dow Jones Equity REIT Index
Treasury yields:
U.S. 3-month | 0.000% | |
U.S. 2-year | 0.279% | |
U.S. 10-year | 2.014% |
| CLG12.NYM | ...Crude Oil Feb 12 | ....99.65 | .. 0.12 | (0.1%) |
| GCZ11.CMX | ...Gold Dec 11 | ......1,609.20 | ... 0.30 | (0.0%) |
Get the latest market update below:
Companies' demand for long-lasting manufactured goods rose by the largest amount in 4 months in Nov, driven by a jump in orders for planes. The Commerce Dept said orders to US factories for durable goods rose 3.8%, the biggest gain since Jul. But core capital goods, a proxy for business investment spending, dropped for a 2nd straight month, falling 1.2%. The declines in business capital goods excluding aircraft raise doubts about a pocket of strength for the economy this year. For Nov, orders in the transportation category rose nearly 15% reflecting a 73% jump in demand for commercial aircraft after 2 straight declines. Orders for military aircraft rose, but demand for motor vehicles & parts edged down after a surge in Oct. Excluding the volatile transportation sector, orders would have risen a more modest 0.3% in Nov, the 3rd straight decline. Factories that make primary metals, such as steel, reported a strong 5.2% increase in demand. Again, moderately good news.
U.S. November Durable Goods Orders Climb 3.8%
Consumers spent at a lackluster rate in Nov as incomes barely grew, suggesting that Americans may struggle to keep spending more into 2012. Consumer spending rose just 0.1% in Nov, matching the modest Oct increase according to the Commerce Dept. Incomes also rose 0.1%, the weakest showing since a 0.1% decline in Aug. Both spending & income gains fell below expectations. Economists have said that solid increases in spending could boost economic growth in the final 3 months of what has been a disappointing year. The weakness in incomes reflected a decline in wages & salaries, the biggest component of incomes. The sluggish gain in spending was held back by a 0.3% fall in spending on non-durable goods such as food, clothing & gasoline. Spending on durable goods jumped 0.8%, reflected the solid auto sales during the month. More mixed signals about the economic recovery.
U.S. Personal Spending Rises Less Than Forecast
Photo: Yahoo
Congress passed a 2-month payroll tax cut extension 8 days before its scheduled expiration after House Reps dropped their objections. It would extend a 2-percentage-point payroll tax cut, continue expanded unemployment benefits & head off a reduction in Medicare payments to doctors through Feb. But then it's off to another make it up as we go along solution for complex problems. Politicos plan to negotiate on a longer-term extension in the new year. Nobody should be proud of this Scotch-Tape approach!
There is nothing exciting going on in the markets. The extension of the tax & unemployment packages was expected, but nothing was really solved since we will have to go thru this all over again in 2 months. Little noticed are the gains by MLPs. The index needs to reach 390 to match its prior record. I repeat record, something very few securities can claim.
Dow Jones Industrial Average
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