Dow slipped 1, advancers ahead of decliners 3-2 & NAZ also was off 1. But bank stocks sold off, taking the Fiancial Index down 2½ to the 166s. The index is little changed from its fall in early Aug
The MLP index edged up 1 to 375 & the REIT index inched up a fraction to the 214s. Junk bond funds & Treasuries were mixed. Oil rebounded from its lowest level in more than 6 weeks a conference call among finance ministers & on speculation that supplies from the MidEast will be disrupted. Gold crept back to $1600.
Photo: Bloomberg
Congress is preparing for a final fight over fiscal policy, with the fate of a payroll tax cut for 160M workers on the line. Reps balked at a deal worked out in the Senate. The House will either change a Senate-passed bill extending the tax cuts through Feb or seek a joint meeting to resolve differences between the 2 chambers. The 2-percentage-point cut in the payroll tax expires in 12 days if Congress doesn’t agree to extend it. “Two months is just kicking the can down the road,” House Speaker John said over the weekend. “The American people are tired of that. I think -- frankly, I’m tired of it.” This is the latest partisan congressional standoff that lawmakers have taken to the brink this year! The Rep controlled House clashed with President Obama & Dem controlled Senate over spending & the federal debt limit. If there is no agreement, workers will see their take-home pay decrease in Jan, benefits will begin disappearing for the long-term unemployed & doctors who care for Medicare patients will experience a 27% cut in reimbursements. The stock market does not like this uncertainty.
Payroll-Tax Cut in Limbo as U.S. Lawmakers Brace for Fiscal-Policy Fight
Homebuilder sentiment perked up in Dec for the 3rd month in a row to its highest level in a year & a half according to the National Association of Home Builders. The NAHB/Wells Fargo Housing Market index rose to 21 from a downwardly revised 19 in the previous month & slightly above the predicted reading of 20. The index was at its highest level since May 2010. After stagnating in a tight range for about a year, the index has been improving since Oct, giving weight to views that the housing market is finding a bottom. Readings below 50 mean more builders view market conditions as poor than favorable & the index has not been above 50 since Apr 2006. "While builder confidence remains low, the consistent gains registered over the past several months are an indication that pockets of recovery are slowly starting to emerge in scattered housing markets," NAHB chairman Bob Nielsen said. The current sales component rose to 22 from 20, while the gauge of sales expectations for the next 6 months rose to 26 from 25. This news barely registers as a positive.
U.S. Homebuilder Confidence Rises a Third Month to Highest Level This Year
Photo: Bloomberg
Few national leaders die these days with no one outside their country knowing about it. But for more than 48 hours there was no mention of the death of North Korean leader Kim Jong-il who died early on Sat. North Korean news is increasingly delivered & dissected there via smartphone & social networking services. A night-time image of the Korean peninsula taken by an intelligence satellite in 2002 shows North Korea as a pool of darkness, in stark contrast to the blazing sea of light that is its prosperous southern neighbor on the other side of the world's most heavily militarized border. A decade later, little has changed. The regime's chokehold on information is made relatively easy by the country's limited communications infrastructure, making an Arab Spring-type scenario almost impossible. It is believed that North Korea had fewer than 2 mobile phone subscriptions per 100 inhabitants last year (South Korea had 105). Asian markets sold off on the news last night & this serves as a cloud for other markets as analysts try to figure out what comes next.
Kim Jong Il Death Sparks North Korea Succession as South Braces for Impact
European finance ministers want to draw additional aid & form new budget rules to contain the region’s debt crisis. This is their concept of bailout III. As usual, nobody knows where this will lead. Confusion about the fate of lower payroll taxes is reason enough to keep buyers away form the markets. In the absence of significant news, the next 2 weeks should be quiet for the markets on low volume. However, debt problems in Europe are not going away & the goings on in DC will be a negative drag.
Dow Jones Industrial Average
The MLP index edged up 1 to 375 & the REIT index inched up a fraction to the 214s. Junk bond funds & Treasuries were mixed. Oil rebounded from its lowest level in more than 6 weeks a conference call among finance ministers & on speculation that supplies from the MidEast will be disrupted. Gold crept back to $1600.
AMZ Alerian MLP Index
DJR Dow Jones Equity REIT Index
Treasury yields:
U.S. 3-month | 0.000% | |
U.S. 2-year | 0.230% | |
U.S. 10-year | 1.844% |
| CLF12.NYM | ...Crude Oil Jan 12 | ...94.03 | ... 0.50 | (0.5%) |
| GCZ11.CMX | ...Gold Dec 11 | ....1,600.40 | ... 4.80 | (0.3%) |
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Congress is preparing for a final fight over fiscal policy, with the fate of a payroll tax cut for 160M workers on the line. Reps balked at a deal worked out in the Senate. The House will either change a Senate-passed bill extending the tax cuts through Feb or seek a joint meeting to resolve differences between the 2 chambers. The 2-percentage-point cut in the payroll tax expires in 12 days if Congress doesn’t agree to extend it. “Two months is just kicking the can down the road,” House Speaker John said over the weekend. “The American people are tired of that. I think -- frankly, I’m tired of it.” This is the latest partisan congressional standoff that lawmakers have taken to the brink this year! The Rep controlled House clashed with President Obama & Dem controlled Senate over spending & the federal debt limit. If there is no agreement, workers will see their take-home pay decrease in Jan, benefits will begin disappearing for the long-term unemployed & doctors who care for Medicare patients will experience a 27% cut in reimbursements. The stock market does not like this uncertainty.
Payroll-Tax Cut in Limbo as U.S. Lawmakers Brace for Fiscal-Policy Fight
Homebuilder sentiment perked up in Dec for the 3rd month in a row to its highest level in a year & a half according to the National Association of Home Builders. The NAHB/Wells Fargo Housing Market index rose to 21 from a downwardly revised 19 in the previous month & slightly above the predicted reading of 20. The index was at its highest level since May 2010. After stagnating in a tight range for about a year, the index has been improving since Oct, giving weight to views that the housing market is finding a bottom. Readings below 50 mean more builders view market conditions as poor than favorable & the index has not been above 50 since Apr 2006. "While builder confidence remains low, the consistent gains registered over the past several months are an indication that pockets of recovery are slowly starting to emerge in scattered housing markets," NAHB chairman Bob Nielsen said. The current sales component rose to 22 from 20, while the gauge of sales expectations for the next 6 months rose to 26 from 25. This news barely registers as a positive.
U.S. Homebuilder Confidence Rises a Third Month to Highest Level This Year
Few national leaders die these days with no one outside their country knowing about it. But for more than 48 hours there was no mention of the death of North Korean leader Kim Jong-il who died early on Sat. North Korean news is increasingly delivered & dissected there via smartphone & social networking services. A night-time image of the Korean peninsula taken by an intelligence satellite in 2002 shows North Korea as a pool of darkness, in stark contrast to the blazing sea of light that is its prosperous southern neighbor on the other side of the world's most heavily militarized border. A decade later, little has changed. The regime's chokehold on information is made relatively easy by the country's limited communications infrastructure, making an Arab Spring-type scenario almost impossible. It is believed that North Korea had fewer than 2 mobile phone subscriptions per 100 inhabitants last year (South Korea had 105). Asian markets sold off on the news last night & this serves as a cloud for other markets as analysts try to figure out what comes next.
Kim Jong Il Death Sparks North Korea Succession as South Braces for Impact
European finance ministers want to draw additional aid & form new budget rules to contain the region’s debt crisis. This is their concept of bailout III. As usual, nobody knows where this will lead. Confusion about the fate of lower payroll taxes is reason enough to keep buyers away form the markets. In the absence of significant news, the next 2 weeks should be quiet for the markets on low volume. However, debt problems in Europe are not going away & the goings on in DC will be a negative drag.
Dow Jones Industrial Average
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