Thursday, December 15, 2011

Markets shrug off improved jobless data

Dow rose 45 (100 below the highs early in the day), advancers over decliners 3-2 & NAZ inched up 1.  Banks stocks pulled back.  The Financial Index erased its gains at the opening when its was up more than 2.

S&P 500 Financials Sector Index

alue168.48One-Year Chart for S&P 500 Financials Sector Index GICS Level 1 (S5FINL:IND)
Change    0.02    (0.0%)

The MLP Index rose 2+ to the 372s & the REIT index was up 3+ to 222.  Junk bond funds were mixed to higher while Treasuries inched higher.  Oil continued weak, falling nearly $10 from its highs in the last month.  Gold fell for a 4th day, heading for the first quarterly loss in more than 3 years, after the Federal Reserve failed to announce more stimulus measures.

AMZ   Alerian MLP Index

DJR   Dow Jones Equity REIT Index

Click below for the latest market update:

Treasury yields:

U.S. 3-month


U.S. 2-year


U.S. 10-year


CLF12.NYM....Crude Oil Jan 12...93.57 ...Down 1.38  (1.5%)

Live 24 hours gold chart [Kitco Inc.]

The global demand for US financial assets cooled in Oct on optimism that Europe would resolve its debt crisis, but that cooled.  Net buying of long-term equities, notes & bonds was $4.8B during the month compared with net purchases of $68.3B in the prior month according to the Treasury Dept.  Including short-term securities such as stock swaps, foreigners sold a net $48.8B compared with net buying of $65B in the previous month when the stock markets sold off.  The European rescue fund was boosted to €1T ($1.4T) in Oct & investors agreed to a voluntary writedown of 50% on Greek debt.

Global Demand for U.S. Assets Climb $4.8 Billion Even as China Cuts Back

Italy paid the most in 14 years to sell 5-year bonds as Parliament rushes to pass a €30B ($39B) budget plan that Prime Minister Monti says will bring down record borrowing costs. The Treasury sold €3B of the bonds, the maximum for the sale, to yield 6.47%, the most since 1997 & up from 6.29 % at the last auction a month ago.  Demand was 1.42X the amount on offer, compared with 1.47X times last month.  By comparison, the US Treasury has bid to cover ratios around 2½-3 to 1.  The Cabinet approved a sweeping budget plan last week aimed at raising revenue & boosting Italy’s anemic growth to persuade investors Italy can avoid a bailout.  Parliamentary committees signed off on the amended plan last night, paving the way for a vote this week in the lower house.  The yield on the benchmark 10-year bond was 6.69% (compared with 1.9% for the US bond).  That pushed the difference with German bonds to 4.69 percentage points. The € extended its decline against the dollar, trading below $1.30 for the first time since Jan 12.  Now the € is just above $1,30, last seen almost 1 year ago.

Italy Sells Debt at Record Yields as Monti Rushes to Get Budget Approved

China' said new import duties imposed on some US made vehicles comply with intl rules.  The Commerce Ministry said the duties on imported autos with engine displacements of over 2.5 liters are "normal trade remedies" to counter US dumping & subsidies.  It rejected suggestions that the measures were protectionist & therefore forbidden under WTO rules.  The office of the US Trade Representative said it would discuss with automakers & Congress before deciding on any response.   Not only is this bad, it can lead to retaliation, not good for anybody.

China defends anti-dumping duties on US-made autos AP

Michael Kors raised $944M after selling 47.2M shares in its IPO, valuing the company at $3.8B.  It had planned to sell 42M shares for $17-19.  But like demand for its designs, investors wanted more which pushed the IPO price to $20.  Kors, an American designer who became a household name in recent years as a judge on fashion design competition show "Project Runway," has been one of the top names in fashion for years, dressing countless celebrities.  His designs for men & women focus on traditional American style with just a hint of high-fashion glitz.  The company, based in Hong Kong, makes high-end handbags, shoes & clothing that it sells at its own shops & thru other retailers.  Handbags can run more than $2K & a halter dress more than $7K, but the bulk of its business is centered on more affordable luxuries for wealthy shoppers such as $300 sunglasses & $600 purses.  The stock finished up $4.20 to $24.20.

Michael Kors designs a successful IPO AP

KORS   Michael Kors Holdings Ltd.

Mortgage rates dropped to record lows, but it is not helping the ailing housing industry. Banks are laying off, left & right.  But the jobless data shows modest improved.  Hard to make sense of this.  One thing is sure, Europe is in trouble.  Greece is a relatively small country, but Spain & especially Italy are big ones.  And they have major financial problems, taking in too little & spending too much.  Today's rally was anemic.   Dow is down over 300 this week & almost 200 in Dec.  The Santa Claus rally, which some had called for, is elusive as the European debt mess haunts all investors.

Dow Jones Industrial Average

Get your favorite symbols' Trend Analysis TODAY!  

No comments: