Dow fell 78 (but off the lows), decliners over advancers 3-1 & NAZ dropped 12. The Financial Index was off 3 to 210.
The MLP index fell 3 to the 397s & the REIT index was off 3 to the 248s. Junk bond funds were mixed & Treasuries had a modest rally following selling in the last 2 weeks. Oil bounced back in the PM as traders have $110 in their sights. Gold dropped to the lowest levels since Jan as signs of slowing growth from China to Germany curbed demand for the precious metal.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
The IMF wants measures attached to a potential loan to Egypt to have “broad political support.” A team just visited the country “to lay groundwork for the return of the technical team that can continue work on Egypt’s economic program,” a spokesman said. The IMF consulted with different stakeholders “to make sure that if and when a program is agreed, there is a clear understanding on both sides about the support needed for implementing policies.” Egypt requested the loan from the IMF in Jan, as the gov seeks to boost an economy struggling to recover from a year of unrest. The economy grew 1.8% in the fiscal year through Jun, the slowest pace in a decade. The spokesman said that upcoming elections in Greece are “not an obstacle” to the implementation of a new €130B ($171B) program that the IMF helps finance & it's “premature to speculate about” the success of the aid program for Portugal. The IMF also said that Hungary, which is seeking a precautionary loan from the IMF, will first need to show a “strong commitment” to engage on policy issues “relevant to macroeconomic stability.” In this context support of the European authorities & institutions will be critical for the successful discussions of a new program. The IMF is taking over the sugar daddy role for the rest of the world, but much of its money comes from the US.
IMF Seeks Broad Support in Egypt for Potential Loan Program
Photo: Bloomberg
The average rate on a 30-year fixed mortgage rose above 4% for the first time in more than 3 months, suggesting the window to buy or refinance a home at historically low rates is closing. Mortgage buyer Freddie Mac said the rate on the 30-year loan jumped to 4.08%, up from 3.92% the previous week. A month ago, it touched 3.87%, the lowest since long-term mortgages began in the 1950s. The average on the 15-year fixed mortgage rose to 3.30%, up from 3.16% last week & a record low of 3.13% just 2 weeks ago. With the yield on the 10 year Treasury up a good 40 basis points basis above its recent lows, further hikes in mortgage rates are expected. The low rates have been a positive sign that suggests the housing market could pick up this year, but that won't last.
Rates on 30-Year U.S. Mortgages Rise Above 4% for First Time Since October
Here's a look at rates for fixed- and adjustable-rate mortgages over the past 52 weeks:
All values are in percentage points.
Source: Freddie Mac Primary Mortgage Market Survey.
A measure of future US economic activity rose in Feb for the 5th straight month. The Conference Board said its index of leading economic indicators rose 0.7%, after a 0.2% increase in Jan (most of the data had been previously released in separate reports). The report "suggests that progress on jobs, output, and incomes may continue through the summer months, if not beyond," said Ken Goldstein, an economist at the Conference Board. 8 of 10 indicators increased last month, while only 2 fell. The largest contributors to the growth of the index were: declining applications for unemployment benefits, the spread between short-term & long-term interest rates & rising stock prices. Rising building permits, average weekly hours worked in manufacturing, a credit index & 2 measures of manufacturing orders also pushed up the index. The 2 indicators that held back the index were a drop in consumer expectations & a decline in new orders for factory goods in a survey of purchasing managers.
Gauge of US economy rose 0.7 percent in February AP
Price at the pump went over $3.88 yesterday. $3.94 is last year's high & $4.11 is the record from 2008.
Source: AAA
After 4 down days, Dow is down 186 this week. The S&P 500 had been above 1400, a key techinical indecator, but dropped 10 today to 1392. Markets are looking tired & mushy after their 6 month run. The major dark clouds remain the same. Europe is in a recession, China growth is slowing & gas prices keep rising in the US (never a good sign for the stock market). Dow was able to remain above 13K, but that could be tested again tomorrow. And earnings season is around the corner.
The MLP index fell 3 to the 397s & the REIT index was off 3 to the 248s. Junk bond funds were mixed & Treasuries had a modest rally following selling in the last 2 weeks. Oil bounced back in the PM as traders have $110 in their sights. Gold dropped to the lowest levels since Jan as signs of slowing growth from China to Germany curbed demand for the precious metal.
JPMorgan Chase Capital XVI (AMJ)
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.071% | |
U.S. 2-year | 0.363% | |
U.S. 10-year | 2.271% |
| CLK12.NYM | ...Crude Oil May 12 | ...106.90 | ... 0.83 | (0.8%) |
The IMF wants measures attached to a potential loan to Egypt to have “broad political support.” A team just visited the country “to lay groundwork for the return of the technical team that can continue work on Egypt’s economic program,” a spokesman said. The IMF consulted with different stakeholders “to make sure that if and when a program is agreed, there is a clear understanding on both sides about the support needed for implementing policies.” Egypt requested the loan from the IMF in Jan, as the gov seeks to boost an economy struggling to recover from a year of unrest. The economy grew 1.8% in the fiscal year through Jun, the slowest pace in a decade. The spokesman said that upcoming elections in Greece are “not an obstacle” to the implementation of a new €130B ($171B) program that the IMF helps finance & it's “premature to speculate about” the success of the aid program for Portugal. The IMF also said that Hungary, which is seeking a precautionary loan from the IMF, will first need to show a “strong commitment” to engage on policy issues “relevant to macroeconomic stability.” In this context support of the European authorities & institutions will be critical for the successful discussions of a new program. The IMF is taking over the sugar daddy role for the rest of the world, but much of its money comes from the US.
IMF Seeks Broad Support in Egypt for Potential Loan Program
The average rate on a 30-year fixed mortgage rose above 4% for the first time in more than 3 months, suggesting the window to buy or refinance a home at historically low rates is closing. Mortgage buyer Freddie Mac said the rate on the 30-year loan jumped to 4.08%, up from 3.92% the previous week. A month ago, it touched 3.87%, the lowest since long-term mortgages began in the 1950s. The average on the 15-year fixed mortgage rose to 3.30%, up from 3.16% last week & a record low of 3.13% just 2 weeks ago. With the yield on the 10 year Treasury up a good 40 basis points basis above its recent lows, further hikes in mortgage rates are expected. The low rates have been a positive sign that suggests the housing market could pick up this year, but that won't last.
Rates on 30-Year U.S. Mortgages Rise Above 4% for First Time Since October
Here's a look at rates for fixed- and adjustable-rate mortgages over the past 52 weeks:
| Current avg. | Last week's avg. | 52-week high | 52-week low | |
| 30-year fixed | 4.08% | 3.92% | 4.91% | 3.87% |
| 15-year fixed | 3.30 | 3.16 | 4.13 | 3.13 |
| 5-yr adjustable | 2.96 | 2.83 | 3.78 | 2.80 |
| 1-yr adjustable | 2.84 | 2.79 | 3.26 | 2.72 |
Source: Freddie Mac Primary Mortgage Market Survey.
A measure of future US economic activity rose in Feb for the 5th straight month. The Conference Board said its index of leading economic indicators rose 0.7%, after a 0.2% increase in Jan (most of the data had been previously released in separate reports). The report "suggests that progress on jobs, output, and incomes may continue through the summer months, if not beyond," said Ken Goldstein, an economist at the Conference Board. 8 of 10 indicators increased last month, while only 2 fell. The largest contributors to the growth of the index were: declining applications for unemployment benefits, the spread between short-term & long-term interest rates & rising stock prices. Rising building permits, average weekly hours worked in manufacturing, a credit index & 2 measures of manufacturing orders also pushed up the index. The 2 indicators that held back the index were a drop in consumer expectations & a decline in new orders for factory goods in a survey of purchasing managers.
Gauge of US economy rose 0.7 percent in February AP
Price at the pump went over $3.88 yesterday. $3.94 is last year's high & $4.11 is the record from 2008.
| Regular | Mid | Premium | Diesel | 85 | **E85 MPG/BTU adjusted price | |
| Current Avg. | $3.881 | $4.021 | $4.151 | $4.153 | $3.287 | $4.326 |
| Yesterday Avg. | $3.864 | $4.001 | $4.132 | $4.147 | $3.283 | $4.320 |
| Week Ago Avg. | $3.821 | $3.965 | $4.096 | $4.122 | $3.262 | $4.292 |
| Month Ago Avg. | $3.570 | $3.704 | $3.839 | $3.953 | $3.119 | $4.104 |
| Year Ago Avg. | $3.548 | $3.688 | $3.820 | $3.935 | $3.017 | $3.971 |
Source: AAA
After 4 down days, Dow is down 186 this week. The S&P 500 had been above 1400, a key techinical indecator, but dropped 10 today to 1392. Markets are looking tired & mushy after their 6 month run. The major dark clouds remain the same. Europe is in a recession, China growth is slowing & gas prices keep rising in the US (never a good sign for the stock market). Dow was able to remain above 13K, but that could be tested again tomorrow. And earnings season is around the corner.
Dow Industrials
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