Dow was up 8, advancers barely ahead of decliners & NAZ rose 8. Bank stocks were higher, the Financial Index went up fractionally to 210. The MLP index was up a fraction to 391 while the REIT index slipped a fraction to the 252s. Junk bond funds edged higher & Treasuries gained. Oil was up for the first time in 3 days as claims for unemployment benefits dropped to a 4-year low, raising hopes that demand for oil may increase. Gold rebounded after yesterday's big sell-off.
Photo: Yahoo
The number lining up for new jobless benefits fell to the lowest level in nearly 4 years last week. Initial claims for benefits fell 6K to 357K, the lowest sin Apr 2008, according to the Labor Dept. The claims data could bolster the case that the healing labor market is lowering the need for the Federal Reserve to do more to boost growth. It is expected that the employment report tomorrow will show the economy added 203K jobs last month, a 4th straight month of solid job (the longest stretch of monthly employment gains topping 200K since 1999). The 4-week moving average for new claims, a measure of labor market trends, declined 4K to 362K. Employers also appear optimistic enough to cut layoffs further. The number of planned layoffs at US firms fell in Mar to the lowest level in 10 months, according to Challenger, Gray & Christmas. The prior week's figure was revised up to 363K from the previously reported 359. The number still receiving benefits under regular state programs fell 16K to 3.3M in the latest week, the lowest since Aug 2008. A total of 7.05M were claiming unemployment benefits under all programs, down 107K from the prior week. The data continues to look good.
Jobless Claims in U.S. Fell to Lowest Level in Four Years
Photo: Yahoo
Retailers reported better-than-expected sales in Mar, the latest sign that consumers are feeling better about the economy. A combination of warm weather & high demand for spring fashions boosted revenue for the month. Consumers have continued to cut back on spending in the slow economic recovery, but they're starting to be encouraged by the improving job market. Only a handful of retailers report monthly figures, but there's optimism that the numbers offer a snapshot of consumer spending, which accounts for more than 70% of all economic activity. Overall, revenue in stores open at least one year rose 4.1%, according to a preliminary tally of 22 retailers by the International Council of Shopping Centers. Retailers catering to customers in all income brackets had monthly gains that beat expectations. While Mar revenue figures are encouraging, analysts caution that retailers should not count their eggs before they hatch. Gas prices, around $4, continue to weigh on consumers & that hurts stores that cater to lower-end shoppers. It's believed that a more accurate picture of spending will emerge after Apr since an earlier Easter holiday this year likely pushed some sales into Mar.
Retailers report positive March sales AP
A slide in Spanish markets deepened as investors’ concerns that Spain may require intl aid rattled markets. Spain, the area’s 4th-largest economy, is in “extreme difficulty,” PM Rajoy said yesterday. This raised the likelihood of a bailout for the 2nd time this week. A rally triggered by more than $1T of ECB loans to stave off a credit crunch is running out of steam &, while Italian Prime Minister Monti is pressing ahead with an economic overhaul, Rajoy is failing to meet deficit targets amid a worsening recession. Spanish bonds fell, pushing the yield on the 10-year Treasury bond to the highest in 4 months at 5.79% & widening the spread with similar-maturity German bunds to more than 4 percentage points. That yield has jumped nearly one percentage point since Mar 2, when Rajoy announced the gov would miss its budget deficit target this year. He set the target for 2012 at 5.3% of GDP, lowering it from 5.8% under EU pressure, instead of 4.4% & warned public debt will surge to a record 79.8% of GDP as it imposes the deepest austerity in at least 3 decades. Another looming disaster to cope with & ECB is running out of ammunition.
Spain’s Economic Woes Rattle Investors; Europe Markets Slide
This is turning out to be a lumbering along kind of day going into a long weekend (US markets closed tomorrow). The jobless claims data was good & the Mar jobs report tomorrow should be another good one, but markets are not responding. Maybe buyers began the weekend early. MLPs continue lagging the markets. The yield for the index is 6.1%, low by historical standards & that may be weighing down MLPs.
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.071% | |
U.S. 2-year | 0.345% | |
U.S. 10-year | 2.193% |
| CLK12.NYM | ...Crude Oil May 12 | ...101.94 | ..... 0.47 | (0.5%) |
| GCJ12.CMX | ....Gold Apr 12 | .........1,629.30 | ... 17.00 | (1.1%) |
Get the latest daily market update below:
The number lining up for new jobless benefits fell to the lowest level in nearly 4 years last week. Initial claims for benefits fell 6K to 357K, the lowest sin Apr 2008, according to the Labor Dept. The claims data could bolster the case that the healing labor market is lowering the need for the Federal Reserve to do more to boost growth. It is expected that the employment report tomorrow will show the economy added 203K jobs last month, a 4th straight month of solid job (the longest stretch of monthly employment gains topping 200K since 1999). The 4-week moving average for new claims, a measure of labor market trends, declined 4K to 362K. Employers also appear optimistic enough to cut layoffs further. The number of planned layoffs at US firms fell in Mar to the lowest level in 10 months, according to Challenger, Gray & Christmas. The prior week's figure was revised up to 363K from the previously reported 359. The number still receiving benefits under regular state programs fell 16K to 3.3M in the latest week, the lowest since Aug 2008. A total of 7.05M were claiming unemployment benefits under all programs, down 107K from the prior week. The data continues to look good.
Jobless Claims in U.S. Fell to Lowest Level in Four Years
Retailers reported better-than-expected sales in Mar, the latest sign that consumers are feeling better about the economy. A combination of warm weather & high demand for spring fashions boosted revenue for the month. Consumers have continued to cut back on spending in the slow economic recovery, but they're starting to be encouraged by the improving job market. Only a handful of retailers report monthly figures, but there's optimism that the numbers offer a snapshot of consumer spending, which accounts for more than 70% of all economic activity. Overall, revenue in stores open at least one year rose 4.1%, according to a preliminary tally of 22 retailers by the International Council of Shopping Centers. Retailers catering to customers in all income brackets had monthly gains that beat expectations. While Mar revenue figures are encouraging, analysts caution that retailers should not count their eggs before they hatch. Gas prices, around $4, continue to weigh on consumers & that hurts stores that cater to lower-end shoppers. It's believed that a more accurate picture of spending will emerge after Apr since an earlier Easter holiday this year likely pushed some sales into Mar.
Retailers report positive March sales AP
Prime Minister Rajoy
Photo: BloombergA slide in Spanish markets deepened as investors’ concerns that Spain may require intl aid rattled markets. Spain, the area’s 4th-largest economy, is in “extreme difficulty,” PM Rajoy said yesterday. This raised the likelihood of a bailout for the 2nd time this week. A rally triggered by more than $1T of ECB loans to stave off a credit crunch is running out of steam &, while Italian Prime Minister Monti is pressing ahead with an economic overhaul, Rajoy is failing to meet deficit targets amid a worsening recession. Spanish bonds fell, pushing the yield on the 10-year Treasury bond to the highest in 4 months at 5.79% & widening the spread with similar-maturity German bunds to more than 4 percentage points. That yield has jumped nearly one percentage point since Mar 2, when Rajoy announced the gov would miss its budget deficit target this year. He set the target for 2012 at 5.3% of GDP, lowering it from 5.8% under EU pressure, instead of 4.4% & warned public debt will surge to a record 79.8% of GDP as it imposes the deepest austerity in at least 3 decades. Another looming disaster to cope with & ECB is running out of ammunition.
Spain’s Economic Woes Rattle Investors; Europe Markets Slide
This is turning out to be a lumbering along kind of day going into a long weekend (US markets closed tomorrow). The jobless claims data was good & the Mar jobs report tomorrow should be another good one, but markets are not responding. Maybe buyers began the weekend early. MLPs continue lagging the markets. The yield for the index is 6.1%, low by historical standards & that may be weighing down MLPs.
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