Dow advanced 97, advancers over decliners 4-1 & NAZ was up 29. Higher banks stock are helping lift the markets.
The MLP index wa up a tad at 391 while the REIT index shot up 3+ to the 234s. Junk bond funds rose & Treasuries were flattish with the yield on the 10 year Treasury still under 2%. Oil rose for the first time in 4 days on growing concern that tension in the MidEast may disrupt supply. Gold jumped to the highest in almost 3 weeks as the dollar’s drop bolstered demand for commodities.
ALERIAN MLP Index
DJ REIT INDEXDJR
Wholesale businesses barely increased their stockpiles in Nov, even though their sales grew strongly. The data suggest many companies underestimated consumer demand & may boost stock levels in the coming months which would lift economic growth. The Commerce Dept said that inventories at the wholesale level edged up 0.1% in Nov. Sales at the wholesale level rose 0.6% after a stronger 0.8% increase in Oct. The modest increase in inventories pushed total wholesale stockpiles up to $469B, an increase of 22.2% from the low hit in Sep 2009. Stockpiles of metals, machinery & clothing increased. Companies tend to build their inventories when they expect stronger sales in the coming months.
U.S. Wholesale Inventories Rise Less-Than-Forecast 0.1% as Sales Gain 0.6%
Photo: Yahoo
Tiffany sales over the holiday season weakened markedly in the US & Europe, prompting it to lower its full-year profit forecast. Layoffs & lower bonuses on Wall Street & in London's City as well as a growing debt crisis in the euro zone have cast a pall on high-end jewelry spending in 2 of its most important markets. Sales at the famous store in Manhattan, which accounts for 8% of revenue, were down 1% in Nov & Dec. The decline would have been worse if not for intl tourists. In Europe, sales at stores open at least a year fell 4%, hurt in particular by a weak British market which is also reliant on banker bonuses. For Nov & Dec, worldwide sales rose 7% to $952M, a slower pace of growth than last year's 11%. Company wide same-store sales were up 4%. Now TIF expects EPS of $3.60-3.65 for the year ending Jan 31, down from its earlier forecast of $3.70-$3.80. It got some relief in Asia, where sales excluding Japan rose 19% to $165M. The stock sank 6.94 (10%). It may be tougher to tax the rich in US.
Greece's talks with private creditors over a bond swap deal are making progress & close to reaching an agreement. Under the deal, creditors would accept a 50% reduction in the face value of gov bonds, potentially cutting the country's debt by €100B ($128B). The bond swap, part of a €130B new rescue package agreed by European leaders in Oct, seeks to ease Greece's massive deficit & help the country emerge from a financial crisis. Greece hopes to wrap up talks ahead of a visit by intl debt inspectors next week. Without the rescue funding, Greece would not be able to redeem the bonds. A gov official said that while there was no agreement yet on the bond swap, known as the Private Sector Involvement ( PSI), the discussions were at a "satisfactory" point. Negotiations on the details have dragged on amid disagreements over how much of a hit, "haircut," banks & other private investors should take. The Greek plays on, hoping to reach a successful conclusion.
Greece: bond swap talks satisfactory, no deal yet AP
Alcoa (AA), the first Dow stock to report, had a Q4 loss (which was expected) but forecast 7% growth in global aluminum demand growth in 2012, with strength in the aerospace & automotive markets. The stock was up 8¢ (less than1%). That was good enough to make the markets feel better about earnings season. OK! Hopes are riding high that Greece will get lenders to accept a 50% haircut on the debt. I call this a fragile basis for a rally, but buyers are returning to the markets.
S&P 500 Financials Sector Index
| Value | 184.73 | |
| Change | 3.24 (1.8%) |
The MLP index wa up a tad at 391 while the REIT index shot up 3+ to the 234s. Junk bond funds rose & Treasuries were flattish with the yield on the 10 year Treasury still under 2%. Oil rose for the first time in 4 days on growing concern that tension in the MidEast may disrupt supply. Gold jumped to the highest in almost 3 weeks as the dollar’s drop bolstered demand for commodities.
ALERIAN MLP Index
DJ REIT INDEXDJR
Treasury yields:
U.S. 3-month | 0.005% | |
U.S. 2-year | 0.244% | |
U.S. 10-year | 1.968% |
| CLG12.NYM | ...Crude Oil Feb 12 | ...103.04 | ...... 1.73 | (1.7%) |
| GCF12.CMX | ...Gold Jan 12 | .........1,636.10 | ... 28.60 | (1.8%) |
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Wholesale businesses barely increased their stockpiles in Nov, even though their sales grew strongly. The data suggest many companies underestimated consumer demand & may boost stock levels in the coming months which would lift economic growth. The Commerce Dept said that inventories at the wholesale level edged up 0.1% in Nov. Sales at the wholesale level rose 0.6% after a stronger 0.8% increase in Oct. The modest increase in inventories pushed total wholesale stockpiles up to $469B, an increase of 22.2% from the low hit in Sep 2009. Stockpiles of metals, machinery & clothing increased. Companies tend to build their inventories when they expect stronger sales in the coming months.
U.S. Wholesale Inventories Rise Less-Than-Forecast 0.1% as Sales Gain 0.6%
Tiffany sales over the holiday season weakened markedly in the US & Europe, prompting it to lower its full-year profit forecast. Layoffs & lower bonuses on Wall Street & in London's City as well as a growing debt crisis in the euro zone have cast a pall on high-end jewelry spending in 2 of its most important markets. Sales at the famous store in Manhattan, which accounts for 8% of revenue, were down 1% in Nov & Dec. The decline would have been worse if not for intl tourists. In Europe, sales at stores open at least a year fell 4%, hurt in particular by a weak British market which is also reliant on banker bonuses. For Nov & Dec, worldwide sales rose 7% to $952M, a slower pace of growth than last year's 11%. Company wide same-store sales were up 4%. Now TIF expects EPS of $3.60-3.65 for the year ending Jan 31, down from its earlier forecast of $3.70-$3.80. It got some relief in Asia, where sales excluding Japan rose 19% to $165M. The stock sank 6.94 (10%). It may be tougher to tax the rich in US.
Tiffany & Co. (TIF)
Greece's talks with private creditors over a bond swap deal are making progress & close to reaching an agreement. Under the deal, creditors would accept a 50% reduction in the face value of gov bonds, potentially cutting the country's debt by €100B ($128B). The bond swap, part of a €130B new rescue package agreed by European leaders in Oct, seeks to ease Greece's massive deficit & help the country emerge from a financial crisis. Greece hopes to wrap up talks ahead of a visit by intl debt inspectors next week. Without the rescue funding, Greece would not be able to redeem the bonds. A gov official said that while there was no agreement yet on the bond swap, known as the Private Sector Involvement ( PSI), the discussions were at a "satisfactory" point. Negotiations on the details have dragged on amid disagreements over how much of a hit, "haircut," banks & other private investors should take. The Greek plays on, hoping to reach a successful conclusion.
Greece: bond swap talks satisfactory, no deal yet AP
Alcoa (AA), the first Dow stock to report, had a Q4 loss (which was expected) but forecast 7% growth in global aluminum demand growth in 2012, with strength in the aerospace & automotive markets. The stock was up 8¢ (less than1%). That was good enough to make the markets feel better about earnings season. OK! Hopes are riding high that Greece will get lenders to accept a 50% haircut on the debt. I call this a fragile basis for a rally, but buyers are returning to the markets.
Dow Industrials
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