Dow rose 81, advancers over decliners almost 4-1 & NAZ was up18. The Financial Index added 1+ to the 191s (4 below its monthly high & this has been a good month for the index). The MLP index gained 3+ to the 364s & the REIT index was up 1 to 253. Junk bond funds rose & Treasuries were about even. Oil increased after the Energy Dept said stockpiles fell less than expected, dropping 133K barrels to 387M barrels. Gold prices hardly moved.
Photo: Yahoo
Demand for long-lasting US manufactured goods rebounded more than expected in May, but slowing global growth suggest the momentum might not be sustained. Slower growth in China & a looming recession in the debt-crisis ridden euro zone have taken some of the shine off the domestic manufacturing sector, leaving the economy mired in a soft patch. But the report from the Commerce Dept suggested the sector, which has shouldered the economy's recovery from the 2007-09 recession, was not falling apart. Durable goods orders increased 1.1% after a revised 0.2% decrease in Apr, well above forecasts for a 0.4% increase. Orders were lifted by a 2.7% jump in transportation equipment as aircraft bookings picked up & motor vehicles demand increased, though at a slower pace than in the prior month. Excluding transportation, orders rose 0.4% after dropping 0.6% in Apr. But May's strength, which came after 2 straight months of declines, could prove temporary.
Durable Goods Orders in U.S. Rise More Than Forecast
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Chancellor Merkel has insisted that Europe can pool its debt only when govs' compliance with fiscal rules can be ensured. She maintains that introducing so-called eurobonds now would be "economically wrong" after addressed the Parliament amid mounting pressure for her country to give up its fierce resistance to pooling debt. She argues it makes no sense to share liability for debt before Europe has undergone a long process of integration & installed tough control mechanisms. The chancellor said a quick move to eurobonds or other forms of joint liability would be constitutionally impossible in Germany and insisted that "supervision & liability must go hand in hand." She said they could only be considered if & when "sufficient supervision is ensured."
Merkel Rebuffs Rajoy Plea, Shuts Door to Euro Area Bonds
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Contracts to purchase previously owned US homes matched a 2-year high in May, fueling optimism the housing market is poised for a recovery. The National Association of Realtors said its Pending Home Sales Index, based on contracts signed last month, rose 5.9% to 101.1, matched a 2-year high reached in Mar & the gain was the largest since Oct 2011. Before Mar, the last time pending home sales were as high was Apr 2010 when buyers were rushing to beat the deadline for a home-buyer tax credit, which was about to expire, the NAR said. "The housing market is clearly superior this year compared with the past four years," Lawrence Yun, NAR chief economist said. "We're on track to see a 9 to 10 percent improvement in total sales for 2012." Forecasts expected signed contracts, which lead home sales by a month or 2, to rise 1.0% after a previously reported 5.5% drop in Apr. Housing is making a comeback, but it's remains tentative.
Pending Sales of U.S. Homes Climbed More Than Forecast in May
Markets are meandering again, with an upward bias. The lack of horrible news out of Europe is bringing out the buyers. However big intl problems have not gone away. There are hopes China will add stimulus to its economy. The US housing data sounds good. We are also going into the end of the month/qtr when anything is possible as money managers even out positions. Dow is down 20 this week, up 200 in Jun but down 600 in Q2.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month | 0.096% | |
U.S. 2-year | 0.305% | |
U.S. 10-year | 1.626% |
| CLQ12.NYM | ....Crude Oil Aug 12 | ...80.24 | ...... 0.88 | (1.1%) |
| GCM12.CMX | ...Gold Jun 12 | .......1,564.00 | ... 10.00 | (0.6%) |
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Demand for long-lasting US manufactured goods rebounded more than expected in May, but slowing global growth suggest the momentum might not be sustained. Slower growth in China & a looming recession in the debt-crisis ridden euro zone have taken some of the shine off the domestic manufacturing sector, leaving the economy mired in a soft patch. But the report from the Commerce Dept suggested the sector, which has shouldered the economy's recovery from the 2007-09 recession, was not falling apart. Durable goods orders increased 1.1% after a revised 0.2% decrease in Apr, well above forecasts for a 0.4% increase. Orders were lifted by a 2.7% jump in transportation equipment as aircraft bookings picked up & motor vehicles demand increased, though at a slower pace than in the prior month. Excluding transportation, orders rose 0.4% after dropping 0.6% in Apr. But May's strength, which came after 2 straight months of declines, could prove temporary.
Durable Goods Orders in U.S. Rise More Than Forecast
Chancellor Merkel has insisted that Europe can pool its debt only when govs' compliance with fiscal rules can be ensured. She maintains that introducing so-called eurobonds now would be "economically wrong" after addressed the Parliament amid mounting pressure for her country to give up its fierce resistance to pooling debt. She argues it makes no sense to share liability for debt before Europe has undergone a long process of integration & installed tough control mechanisms. The chancellor said a quick move to eurobonds or other forms of joint liability would be constitutionally impossible in Germany and insisted that "supervision & liability must go hand in hand." She said they could only be considered if & when "sufficient supervision is ensured."
Merkel Rebuffs Rajoy Plea, Shuts Door to Euro Area Bonds
Photo: Yahoo
Contracts to purchase previously owned US homes matched a 2-year high in May, fueling optimism the housing market is poised for a recovery. The National Association of Realtors said its Pending Home Sales Index, based on contracts signed last month, rose 5.9% to 101.1, matched a 2-year high reached in Mar & the gain was the largest since Oct 2011. Before Mar, the last time pending home sales were as high was Apr 2010 when buyers were rushing to beat the deadline for a home-buyer tax credit, which was about to expire, the NAR said. "The housing market is clearly superior this year compared with the past four years," Lawrence Yun, NAR chief economist said. "We're on track to see a 9 to 10 percent improvement in total sales for 2012." Forecasts expected signed contracts, which lead home sales by a month or 2, to rise 1.0% after a previously reported 5.5% drop in Apr. Housing is making a comeback, but it's remains tentative.
Pending Sales of U.S. Homes Climbed More Than Forecast in May
Markets are meandering again, with an upward bias. The lack of horrible news out of Europe is bringing out the buyers. However big intl problems have not gone away. There are hopes China will add stimulus to its economy. The US housing data sounds good. We are also going into the end of the month/qtr when anything is possible as money managers even out positions. Dow is down 20 this week, up 200 in Jun but down 600 in Q2.
Dow Jones Industrials
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