Dow dropped 36, decliners over advancers 2-1 & NAZ fell 20. Bank stocks led the selling, bringing the Financial Index down 2 to the 206s (where it was 3 weeks ago). The MLP index was up a fraction in the 396s but the REIT index fell 1 (from its yearly high) to the 259s. Junk bond funds rose, continuing on their winning ways in Apr, & Treasuries were higher, taking the yield on the 10 year Treasury near 1.9%. Oil fell as Spain's economy contracted in Q1 & gold also was lower.
Photo: Bloomberg
Spending by US consumers slowed in Mar, while income rose at a faster pace according to the Commerce Dept. Personal spending increased 0.3%, below a 0.9% jump in Feb, much weaker than the 0.5% spending gain forecast. Adjusting for higher prices, spending increased only 0.1%. However, income increased a little faster, rising 0.4%, an improvement from the 0.2% gain in the priot month. This was the first time since Dec that income growth outpaced spending increases, as consumers dipped into savings the previous 2 months to deal with rising prices, such as increases in gasoline prices. Inflation moderated & it allowed consumers to increase savings again. The savings rate, which compares after-tax income to the level of spending, edged up to 3.8% from 3.7% in Feb.
Consumer Spending in U.S. Increases as Incomes Rise
Photo: Bloomberg
Energy Transfer Partners, an MLP, is buying Sunoco for $5.3B to give it the capability to transport crude & other liquid hydrocarbons that are being produced in greater quantities from the boom in shale drilling. SUN pipelines crisscross the country, connecting the Great Lakes & Northeast to refining center along the Gulf Coast. ETP has been looking to diversify into oil pipelines in response to an expected slowdown in the natural gas pipeline business. SUN will continue its exit from the refining business. The deal will bring the cash flow mix for the pipeline businesses at ETP to about 70% natural gas & 30% heavier hydrocarbons. The offer is worth more than $50 per SUN. It includes $25 in cash & a portion of an ETP unit. Shareholders can also opt for $50 in cash. SUN rose 8.21 to 49.12 & ETP added 59¢ to 48.51.
Some of the traders may be taking longer weekends, so markets are pausing after another leg up last week. There were corp deals today, but they are not bringing out buyers. Dow is less than a 100 from its multi yearly highs, needing other news to reach 13.3K (its next objective).
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.092% | |
U.S. 2-year | 0.258% | |
U.S. 10-year | 1.917% |
| CLM12.NYM | ...Crude Oil Jun 12 | ...104.22 | ... 0.71 | (0.7%) |
| GCK12.CMX | ...Gold May 12 | ......1,654.80 | ... 9.20 | (0.6%) |
Get the latest daily market update below:
Spending by US consumers slowed in Mar, while income rose at a faster pace according to the Commerce Dept. Personal spending increased 0.3%, below a 0.9% jump in Feb, much weaker than the 0.5% spending gain forecast. Adjusting for higher prices, spending increased only 0.1%. However, income increased a little faster, rising 0.4%, an improvement from the 0.2% gain in the priot month. This was the first time since Dec that income growth outpaced spending increases, as consumers dipped into savings the previous 2 months to deal with rising prices, such as increases in gasoline prices. Inflation moderated & it allowed consumers to increase savings again. The savings rate, which compares after-tax income to the level of spending, edged up to 3.8% from 3.7% in Feb.
Consumer Spending in U.S. Increases as Incomes Rise
Energy Transfer Partners, an MLP, is buying Sunoco for $5.3B to give it the capability to transport crude & other liquid hydrocarbons that are being produced in greater quantities from the boom in shale drilling. SUN pipelines crisscross the country, connecting the Great Lakes & Northeast to refining center along the Gulf Coast. ETP has been looking to diversify into oil pipelines in response to an expected slowdown in the natural gas pipeline business. SUN will continue its exit from the refining business. The deal will bring the cash flow mix for the pipeline businesses at ETP to about 70% natural gas & 30% heavier hydrocarbons. The offer is worth more than $50 per SUN. It includes $25 in cash & a portion of an ETP unit. Shareholders can also opt for $50 in cash. SUN rose 8.21 to 49.12 & ETP added 59¢ to 48.51.
Sunoco, Inc. (SUN)
ENERGY TRANSFER PARTNERS (ETP)
Some of the traders may be taking longer weekends, so markets are pausing after another leg up last week. There were corp deals today, but they are not bringing out buyers. Dow is less than a 100 from its multi yearly highs, needing other news to reach 13.3K (its next objective).
Dow Industrials
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