Late day buying brought the markets into the black, barely. Dow gained 21, advancers just below decliners & NAZ was down pocket change. Bank stock also waffled as the Financial Index slipped a fraction to the 179s.
The Alerian MLP index shot up 4 to 395, as reaching a new record high yesterday brought out MLP buyers. The REIT index fell 2+ to below 231, junk bond funds were mixed while Treasuries were weaker. Oil fluctuated near an 8 month high after the EU said it’s working to sanction oil imports from Iran & on concerns that Europe’s debt crisis will affect consumption. Gold rose for those same reasons.
ALERIAN MLP Index
DJ REIT INDEXDJR
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Bloomberg
Auto sales increased as consumer confidence reached an 8 month high in Dec, & carmakers aired holiday ads. US automakers rallied in 2011, 2 years after General Motors & Chrysler emerged from bankruptcies & GM reclaimed the top spot in world vehicle sales from Toyota (TM). GM Dec vehicle sales rose 4.5% to 234K, topping the 4.4% estimate. Chrysler sales jumped 37% to 138K cars & light trucks, more than the 33% estimate. Toyota & Nissan also beat estimates. Industry light-vehicle sales in Dec may have run at a 13.4M annual rate, up from the 12.5M pace a year earlier. TM sales of Toyota, Lexus & Scion models increased 0.4% from a year ago to 178K vehicles, topping an expected 1% decline. Nissan deliveries rose 7.7% to 100K, beating the 5% gain predicted GM & Ford were each up fractionally.
GM, Ford, Chrysler U.S. Sales Top Estimates
Photo: Bloomberg
Groupon shares fell below the IPO price, as merchants & investors are having second thoughts about the industry. Half the businesses that offered an online deal- of-the-day in the past aren’t planning to do so again in the next 6 months because merchants were concerned about a low rate of repeat business from new customers gained through such offers. To keep growing, the industry may more than double to $4B by 2015, will probably agree to charge businesses less which will cut into its profits. Margins are already shrinking. While 80% of merchants were satisfied with daily-deal companies, about 52% of merchants said they’re not planning to offer a discount through such sites. The stock dropped 48¢ to $18.79 & is below the $20 offering price.
Groupon’s Shares Tumbling Below IPO Price Reflects Daily-Deal Peril: Tech
Markets were not able to follow thru after yesterday's big gain. The big jobs report on Fri can be felt already & tensions with Iran are another major negative. Retail sales & auto sales were OK, although discounting probably reduced profitability. Tomorrow may be another nervous day for traders with little accomplished. The standout performance is for the MLP index, but MLPs are yield securities & rising prices bring lower yields. The yield for the index is about 6%, below that has signaled trouble in the past.
The Alerian MLP index shot up 4 to 395, as reaching a new record high yesterday brought out MLP buyers. The REIT index fell 2+ to below 231, junk bond funds were mixed while Treasuries were weaker. Oil fluctuated near an 8 month high after the EU said it’s working to sanction oil imports from Iran & on concerns that Europe’s debt crisis will affect consumption. Gold rose for those same reasons.
ALERIAN MLP Index
DJ REIT INDEXDJR
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.010% | |
U.S. 2-year | 0.259% | |
U.S. 10-year | 1.984% |
| CLG12.NYM | ...Crude Oil Feb 12 | ...103.26 | ... 0.30 | (0.2%) |
Auto sales increased as consumer confidence reached an 8 month high in Dec, & carmakers aired holiday ads. US automakers rallied in 2011, 2 years after General Motors & Chrysler emerged from bankruptcies & GM reclaimed the top spot in world vehicle sales from Toyota (TM). GM Dec vehicle sales rose 4.5% to 234K, topping the 4.4% estimate. Chrysler sales jumped 37% to 138K cars & light trucks, more than the 33% estimate. Toyota & Nissan also beat estimates. Industry light-vehicle sales in Dec may have run at a 13.4M annual rate, up from the 12.5M pace a year earlier. TM sales of Toyota, Lexus & Scion models increased 0.4% from a year ago to 178K vehicles, topping an expected 1% decline. Nissan deliveries rose 7.7% to 100K, beating the 5% gain predicted GM & Ford were each up fractionally.
GM, Ford, Chrysler U.S. Sales Top Estimates
General Motors Company (GM)
Ford Motor Credit Company (F)
Groupon shares fell below the IPO price, as merchants & investors are having second thoughts about the industry. Half the businesses that offered an online deal- of-the-day in the past aren’t planning to do so again in the next 6 months because merchants were concerned about a low rate of repeat business from new customers gained through such offers. To keep growing, the industry may more than double to $4B by 2015, will probably agree to charge businesses less which will cut into its profits. Margins are already shrinking. While 80% of merchants were satisfied with daily-deal companies, about 52% of merchants said they’re not planning to offer a discount through such sites. The stock dropped 48¢ to $18.79 & is below the $20 offering price.
Groupon’s Shares Tumbling Below IPO Price Reflects Daily-Deal Peril: Tech
Groupon, Inc. (GRPN)
Markets were not able to follow thru after yesterday's big gain. The big jobs report on Fri can be felt already & tensions with Iran are another major negative. Retail sales & auto sales were OK, although discounting probably reduced profitability. Tomorrow may be another nervous day for traders with little accomplished. The standout performance is for the MLP index, but MLPs are yield securities & rising prices bring lower yields. The yield for the index is about 6%, below that has signaled trouble in the past.
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