Dow rose 77, advancers over decliners 5-2 & NAZ gained 23. The Financial Index was up 1+ to the 201s, a 3 month high. The MLP indesx rose a fraction to 390 & the REIT index was up a fraction in the 269s. Junk bond funds were mixed & Treasuries posted modest gains. Oil slid from the highest close in 2 weeks amid speculation that its biggest gain in more than a month was excessive. Gold had a minimal gain.
Photo: Bloomberg
AMJ (Alerian MLP Index tracking fund)
Treasury yieleds:
U.S. 3-month | 0.081% | |
U.S. 2-year | 0.232% | |
U.S. 10-year | 1.549% |
| CLU12.NYM | ....Crude Oil Sep 12 | ...90.87 | ... 0.53 | (0.6%) |
| GCQ12.CMX | ...Gold Aug 12 | .....1,607.80 | .... 1.80 | (0.1%) |
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Big Ben said that although broad measurements of the economy point to recovery, many people & businesses are facing tough times. "Even though some key aggregate metrics -- including consumer spending, disposable income, household net worth, and debt service payments -- have moved in the direction of recovery, it is clear that many individuals and households continue to struggle with difficult economic and financial conditions," he said. Bernanke was speaking to a research conference, but did not discuss the outlook for monetary policy or refer to a report that the economy added a more-than-expected 163K jobs in Jul even as the jobless rate rose to 8.3%%. Bernanke talked about conventional economic measurements that bear on the quality of life include income distribution, upward mobility, job security, & buffers households have to protect against financial shocks, he said. "All of these indicators could be useful in measuring economic progress or setbacks as well as explaining economic decision making or projecting future economic outcomes," he said.
Photo: Yahoo
Italy's prime minister has warned that the eurozone's sprawling debt crisis has created resentment amid the bloc's nations, which could ultimately trigger a breakup of the wider EU. Mario Monti said that eurozone tensions over the past few years "bear the traits of a psychological dissolution of Europe," adding that Europe "must work hard to contain it." The debt crisis started in Greece more than 2 years ago, & soon engulfed Ireland & Portugal, with all 3 eventually needing to be bailed out. Spain recently applied for an aid package to rescue its troubled banks, & Italy, the eurozone's3rd-largest economy, has also been hit hard by rising borrowing costs on its gov debt. Asked about a strengthening in resentment between the allegedly profligate southern European nations & northern members, Monti said "it is very alarming, and we have to fight against it." "Yes, there is a front line in this area between north and south, there are reciprocal prejudices," he added. An Italian newspaper this week run a front page decrying alleged German domination of Europe, showing an image of Chancellor Angela Merkel, often criticized for insisting on austerity measures & fiscal discipline in the crisis-hit nations, alongside the headline "Fourth Reich," alluding to a new generation of Adolf Hitler's Nazi regime. The euro debt mess drones on with no end in sight.
Monti Calls for More Crisis-Fighting Urgency in ECB Standoff
Greece & its intl creditors agreed on the need to strengthen policy efforts to support the economy & comply with its bailout terms after nearly 2 weeks of meetings after representatives from the European Commission, ECB & the IMF (the troika) met with Greek Finance Minister Stournaras in Athens. The talks will determine whether Greece continues receiving funds from the country’s €240B ($297B) of rescue packages. “The discussions on the implementation of the program were productive and there was an overall agreement on the need to strengthen policy efforts to achieve its objectives,” the troika institutions said. Inspectors will return in early Sep to continue talks
The Prime Minister Samaras on last week got agreement from the 2 party leaders supporting his coalition gov on the need for €11.5B of budget cuts in 2013 & 2014 to keep the intl rescue funds flowing. The Greek drama continues.
Greece Agrees With Troika on Need to Strengthen Policy
Stocks extended the Fri rally.although there was no special news driving the markets. The jobs data sounds good but it would have not gotten a warm reception in Q1 & is short of the number needed to reduce unemployment. REITs are doing exdeptionally well with the REIT index at its high since the plunge in Sep 2008. Junk bond funds, stocks with high yields, are also doing well, with most of them at or near multi year highs. Meanwhile macro news news from US & Europe ain't that good.
Dow Jones Industrials
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