Stocks began the day higher & buyers continue to be in command. Dow rose 148, advancers almost 4-1 over decliners & NAZ added 36. The Financial Index was up 2+ to the 206s (where it was a month ago). The MLP index recovered 1+ to the 385s & the REIT index gained 1 to the 247s. Junk bond funds & Treasuries eased back a little. Oil is trying to work its way higher as is gold.
Photo: Bloomberg
Photo: Yahoo
The number filing for jobless aid rose last week to the highest level since Jan, a development that could raise fears the labor market recovery has stalled after job creation slowed in Mar. Initial claims for benefits increased 13K to 380K according to the Labor Dept (above expectations for a drop to 355K). The 4-week moving average rose 4K to 368K. Easter holidays may have caused the spike in claims. The data comes in the wake of last week's disappointing employment report for Mar, which showed the economy created 120K new jobs, the smallest number since Oct. Despite the rise in claims last week, both first-time applications for unemployment aid & the 4-week average held below the 400K mark, implying steady job gains.
U.S. Jobless Claims Rise to 380,000, Higher Than Forecast
Photo: Yahoo
The US trade deficit fell in Feb to its lowest point in 4 months as exports rose to an all-time high while imports dropped. A narrower deficit could lead to upward revisions for growth estimates in Q1. The Commerce Dept said that the trade deficit decreased 12.4% to $46B in Feb, down from $52.5B in Jan. Exports inched up 0.1% to a record $181.2B. US businesses sold more in Europe, China & the rest of the world. Meanwhile imports dropped 2.7% to $227.2B, after hitting a record high in Jan. Oil imports fell, as did imports of foreign cars & machinery. A narrower trade deficit will weigh less on growth because it means businesses sold more American goods overseas while consumers bought fewer foreign-made products. Forecasts are for slower growth in Q1 to an annual rate of less than 2.5%, down from 3% in Q4. The deficit with the EU dropped 30% to $5.9B. Exports to the region rose 6.7% & it represents about 20% of America's export market. The deficit with China fell 25.6% to $19.4B, the lowest level since Mar 2011. For all of 2011, the deficit with China hit a record $295.5B, the highest deficit ever recorded with a single country.
Trade Gap in U.S. Narrows More Than Forecast as Imports Drop
In the last week, the 30-year mortgage rate averaged 3.88%, down from 3.98% in the prior week according to Freddie Mac. The drop, the 3rd consecutive weekly decline, comes as long-term Treasury bond yields fell after a weaker than expected employment report for Mar. The 15-year rate dropped to 3.11% from 3.21% a week earlier. The previous low was 3.13% last month. But low rates are not helping the housing industry recover. Home-loan applications in the US dropped for the 8th week in the last 9 as fewer homes were refinanced. The Mortgage Bankers Association’s index decreased 2.4% in the period ended Apr 6.
Mortgage Rates in the U.S. Fall With 15-Year at Lowest on Record
A rumor was whispered that Ben wanted money to be even easier which was good enough to bring out buyers in force. While it sounds good, not sure how much good a QE3 would do. The US economy is doing good, but short of great. Housing is the largest single drag on the recovery & lower interest rates are not going to give it boost all of a sudden. The rest of the world is plodding along with Europe in a recession & China will report its Q1 GDP data tonight. Earnings reports will begin in earnest shortly. This rally could be another case of buy on the rumor & sell on the news.
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.081% | |
U.S. 2-year | 0.286% | |
U.S. 10-year | 2.035% |
| CLK12.NYM | ....Crude Oil May 12 | ...103.49 | ... 0.79 | (0.8%) |
| GCJ12.CMX | ....Gold Apr 12 | .........1,669.00 | .... 10.00 | (0.6%) |
Get the latest daily market update below:
The number filing for jobless aid rose last week to the highest level since Jan, a development that could raise fears the labor market recovery has stalled after job creation slowed in Mar. Initial claims for benefits increased 13K to 380K according to the Labor Dept (above expectations for a drop to 355K). The 4-week moving average rose 4K to 368K. Easter holidays may have caused the spike in claims. The data comes in the wake of last week's disappointing employment report for Mar, which showed the economy created 120K new jobs, the smallest number since Oct. Despite the rise in claims last week, both first-time applications for unemployment aid & the 4-week average held below the 400K mark, implying steady job gains.
U.S. Jobless Claims Rise to 380,000, Higher Than Forecast
The US trade deficit fell in Feb to its lowest point in 4 months as exports rose to an all-time high while imports dropped. A narrower deficit could lead to upward revisions for growth estimates in Q1. The Commerce Dept said that the trade deficit decreased 12.4% to $46B in Feb, down from $52.5B in Jan. Exports inched up 0.1% to a record $181.2B. US businesses sold more in Europe, China & the rest of the world. Meanwhile imports dropped 2.7% to $227.2B, after hitting a record high in Jan. Oil imports fell, as did imports of foreign cars & machinery. A narrower trade deficit will weigh less on growth because it means businesses sold more American goods overseas while consumers bought fewer foreign-made products. Forecasts are for slower growth in Q1 to an annual rate of less than 2.5%, down from 3% in Q4. The deficit with the EU dropped 30% to $5.9B. Exports to the region rose 6.7% & it represents about 20% of America's export market. The deficit with China fell 25.6% to $19.4B, the lowest level since Mar 2011. For all of 2011, the deficit with China hit a record $295.5B, the highest deficit ever recorded with a single country.
Trade Gap in U.S. Narrows More Than Forecast as Imports Drop
In the last week, the 30-year mortgage rate averaged 3.88%, down from 3.98% in the prior week according to Freddie Mac. The drop, the 3rd consecutive weekly decline, comes as long-term Treasury bond yields fell after a weaker than expected employment report for Mar. The 15-year rate dropped to 3.11% from 3.21% a week earlier. The previous low was 3.13% last month. But low rates are not helping the housing industry recover. Home-loan applications in the US dropped for the 8th week in the last 9 as fewer homes were refinanced. The Mortgage Bankers Association’s index decreased 2.4% in the period ended Apr 6.
Mortgage Rates in the U.S. Fall With 15-Year at Lowest on Record
A rumor was whispered that Ben wanted money to be even easier which was good enough to bring out buyers in force. While it sounds good, not sure how much good a QE3 would do. The US economy is doing good, but short of great. Housing is the largest single drag on the recovery & lower interest rates are not going to give it boost all of a sudden. The rest of the world is plodding along with Europe in a recession & China will report its Q1 GDP data tonight. Earnings reports will begin in earnest shortly. This rally could be another case of buy on the rumor & sell on the news.
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