Dow fell 65, advancers barely ahead of decliners & NAZ gained 5. Bank stocks hardly budged.
MLPs were hit with profit taking & the REIT index slipped 1 to the 245s. But both are coming off a strong Jan. Junk bond funds were mixed as were Treasuries. Oil is headed for its first weekly gain in 3 on signs Greece is near an agreement with its creditors & growing tensions with Iran. Gold is having a quiet day.
The US economy grew at a 2.8% annual rate in Q4, the fastest growth in 2011. More was spent on cars & trucks, & companies restocked inventories at the strongest pace in nearly 2 years. But growth in Q4 & for all of 2011 was held back by the biggest annual gov spending cuts in 4 decades. The Commerce Dept said the economy grew just 1.7% last year, roughly half of the growth in 2010 & the worst since the recession. Businesses are expected to ease up on restocking in Q1 which should slow GDP growth. In addition, consumers may cut back on spending if their wages continue to lag inflation or tax cuts are not extended. In Q4, consumer spending grew at a 2% annual rate, up modestly from Q3. Much of the growth was powered by a 14.8% surge in sales of autos & other long-lasting manufactured goods. Incomes, which have been weak all year because of high unemployment, grew at a modest 0.8% annual rate (following 2 straight qtrs of declining incomes). Consumer spending is important because it makes up 70% of economic activity. This data is muddy showing no clear indication off a strong recovery.
U.S. Economy Grows 2.8%, Less Than Forecast
The Thomson Reuters/University of Michigan final index of consumer sentiment for January rose to 75.0 from 69.9 at the end of Dec. It was projected to hold at the preliminary January reading of 74. Estimates ranged from 72.5-76. The measure averaged 89 in the 5 years leading up to the recession that began in Dec 2007 & ended in Jun 2009. Consumer confidence remains less than rosy.
U.S. Michigan Consumer Sentiment Rises
Photo: Yahoo
P&G Cuts Full-Year Profit Forecast on Unfavorable Currency Exchange Rates
Markets were mixed in listless trading, as has been the case this week. Earnings may be good enough, but not inspiring. Greek debt talks resumed (have heard that many times before), but all talk with no action is no help for the markets. The MLP index had a large pullback after gaining 25% to a new record in the last 4 months. Lower yields may be prompting this selling. There was also an article that western North Dakota, which is booming from expansion in shale oil & gas, has boom problems. Of course, plenty of states would like to exchange places.
S&P 500 Financials Sector Index
| Value | 189.56 | |
| Change | -0.07 (-0.0%) |
MLPs were hit with profit taking & the REIT index slipped 1 to the 245s. But both are coming off a strong Jan. Junk bond funds were mixed as were Treasuries. Oil is headed for its first weekly gain in 3 on signs Greece is near an agreement with its creditors & growing tensions with Iran. Gold is having a quiet day.
Alerian MLP Index
| Value | 395.35 | |
| Change | -5.39 (-1.4%) |
Treasury yields:
U.S. 3-month | 0.051% | |
U.S. 2-year | 0.211% | |
U.S. 10-year | 1.926% |
| CLH12.NYM | ...Crude Oil Mar 12 | ...100.03 | ... 0.33 | (0.3%) |
| GCF12.CMX | ...Gold Jan 12 | .........1,721.00 | ... 5.30 | (0.3%) |
Get the latest daily market update below:
The US economy grew at a 2.8% annual rate in Q4, the fastest growth in 2011. More was spent on cars & trucks, & companies restocked inventories at the strongest pace in nearly 2 years. But growth in Q4 & for all of 2011 was held back by the biggest annual gov spending cuts in 4 decades. The Commerce Dept said the economy grew just 1.7% last year, roughly half of the growth in 2010 & the worst since the recession. Businesses are expected to ease up on restocking in Q1 which should slow GDP growth. In addition, consumers may cut back on spending if their wages continue to lag inflation or tax cuts are not extended. In Q4, consumer spending grew at a 2% annual rate, up modestly from Q3. Much of the growth was powered by a 14.8% surge in sales of autos & other long-lasting manufactured goods. Incomes, which have been weak all year because of high unemployment, grew at a modest 0.8% annual rate (following 2 straight qtrs of declining incomes). Consumer spending is important because it makes up 70% of economic activity. This data is muddy showing no clear indication off a strong recovery.
U.S. Economy Grows 2.8%, Less Than Forecast
The Thomson Reuters/University of Michigan final index of consumer sentiment for January rose to 75.0 from 69.9 at the end of Dec. It was projected to hold at the preliminary January reading of 74. Estimates ranged from 72.5-76. The measure averaged 89 in the 5 years leading up to the recession that began in Dec 2007 & ended in Jun 2009. Consumer confidence remains less than rosy.
U.S. Michigan Consumer Sentiment Rises
P&G Cuts Full-Year Profit Forecast on Unfavorable Currency Exchange Rates
Procter & Gamble Company (The) (PG)
Markets were mixed in listless trading, as has been the case this week. Earnings may be good enough, but not inspiring. Greek debt talks resumed (have heard that many times before), but all talk with no action is no help for the markets. The MLP index had a large pullback after gaining 25% to a new record in the last 4 months. Lower yields may be prompting this selling. There was also an article that western North Dakota, which is booming from expansion in shale oil & gas, has boom problems. Of course, plenty of states would like to exchange places.
Dow Industrials
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