Dow was up 5, advancers & decliners were about equal & NAZ added all of 1. The Financial Index was up pocket change to 301, good enough for a 3 month high. The MLP index was up a fraction in the 395s & the REIT index fell a fraction to the 264s. Junk bond funds were mixed but Treasuries rose after recent weakness. Oil inched up (at 3 month highs) & gold slid a few $s.
Photo: Bloomberg
Angela Merkel is working while others are away on holiday. She is considering easing Greece’s bailout terms, fanning tensions with members of her coalition who oppose giving the Greek gov any more concessions. Merkel’s gov is torn between showing some leniency toward Greece as it struggles to meet the terms of its rescues & insisting that Prime Minister Samaras deliver on his promises. “The sensitivities among many more than just the 27 coalition members who voted ‘no’ last time are well known” to Merkel, “so the official line is to stay tough” on Greece, said a member of Merkel’s Christian Democratic Union party. “But at the same time, some are being sent forward to test the waters on how this tough line can be abandoned.” Samaras, whose coalition favors extending its fiscal adjustment program by 2 years to the end of 2016, will visit Berlin next week for talks with Merkel, almost 3 years after the debt crisis emerged in Greece. The country’s intl creditors are due to report on Greek progress in meeting bailout targets next month, an assessment that will determine whether Greece receives a next aid payment needed to stay in the eurozone.
Photo: Bloomberg
The index of US leading economic indicators climbed more than forecast in Jul, a sign of sustained expansion. The Conference Board's gauge of the outlook for the next 3-6 months increased 0.4% after a revised 0.4% drop in Jun. A rise by 0.2% was predicted. Retail sales rose more than forecast, showing households are looking beyond the slowdown & increasing spending, which accounts for about 70% of the economy. The housing market also has signaled improvement. At the same time, unemployment remains above 8%, which is consistent with the Federal Reserve's view that economic growth will “remain moderate over coming quarters.” 7 of the 10 indicators in the index contributed to the increase, led by building permits & state jobless claims, while 2 decreased. One, the average workweek, was unchanged in Jul. The Conference Board’s index of coincident indicators, a gauge of current economic activity, increased 0.3% after rising 0.2% in Jun. The coincident index tracks payrolls, incomes, sales & production. The gauge of lagging indicators rose 0.4% after increasing a revised 0.1% the previous month. Moderately good news.
Photo: Bloomberg
Confidence among US consumers unexpectedly improved in Aug, boosting the prospect of stronger household spending in Q3. The Thomson Reuters/University of Michigan preliminary Aug index of consumer sentiment increased to 73.6, the highest level since May, from 72.3 the prior month. The gauge was projected to be little changed at 72.2. After 2 months of sliding sentiment, the Aug advance indicates consumers may be feeling the benefits of growing payrolls & rising confidence raises the odds households can sustain the pickup in retail sales from Jul. But this sentiment reading for Aug contrasts with the Bloomberg Consumer Comfort Index, which slumped last week to the lowest level since Jan. The Michigan survey’s index of current conditions, which reflects Americans’ perceptions of their financial situation & whether they consider it a good time to buy big-ticket items like cars, improved to 87.6 from 82.7 the prior month. It is the highest number since Jan 2008. The index of consumer expectations 6 months from now, which more closely projects the direction of consumer spending, fell to 64.5, an 8 month low, from 65.6 in Jul. More moderately good news.
Once again there is very little going on in the markets. Too many are away on summer holiday, enjoying their profits. Dow is up about 40 this week, good enough to keep the bulls happy. Until Labor Day, sluggish market performance is expected although the bulls are still trying to take the Dow to new highs for this year.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month | 0.081% | |
U.S. 2-year | 0.282% | |
U.S. 10-year | 1.810% |
| CLU12.NYM | ...Crude Oil Sep 12 | ...95.46 | ... 0.14 | (0.15%) |
| GCQ12.CMX | ...Gold Aug 12 | .....1,615.00 | ... 1.10 | (0.1%) |
Get the latest daily market update below:
Angela Merkel is working while others are away on holiday. She is considering easing Greece’s bailout terms, fanning tensions with members of her coalition who oppose giving the Greek gov any more concessions. Merkel’s gov is torn between showing some leniency toward Greece as it struggles to meet the terms of its rescues & insisting that Prime Minister Samaras deliver on his promises. “The sensitivities among many more than just the 27 coalition members who voted ‘no’ last time are well known” to Merkel, “so the official line is to stay tough” on Greece, said a member of Merkel’s Christian Democratic Union party. “But at the same time, some are being sent forward to test the waters on how this tough line can be abandoned.” Samaras, whose coalition favors extending its fiscal adjustment program by 2 years to the end of 2016, will visit Berlin next week for talks with Merkel, almost 3 years after the debt crisis emerged in Greece. The country’s intl creditors are due to report on Greek progress in meeting bailout targets next month, an assessment that will determine whether Greece receives a next aid payment needed to stay in the eurozone.
The index of US leading economic indicators climbed more than forecast in Jul, a sign of sustained expansion. The Conference Board's gauge of the outlook for the next 3-6 months increased 0.4% after a revised 0.4% drop in Jun. A rise by 0.2% was predicted. Retail sales rose more than forecast, showing households are looking beyond the slowdown & increasing spending, which accounts for about 70% of the economy. The housing market also has signaled improvement. At the same time, unemployment remains above 8%, which is consistent with the Federal Reserve's view that economic growth will “remain moderate over coming quarters.” 7 of the 10 indicators in the index contributed to the increase, led by building permits & state jobless claims, while 2 decreased. One, the average workweek, was unchanged in Jul. The Conference Board’s index of coincident indicators, a gauge of current economic activity, increased 0.3% after rising 0.2% in Jun. The coincident index tracks payrolls, incomes, sales & production. The gauge of lagging indicators rose 0.4% after increasing a revised 0.1% the previous month. Moderately good news.
Confidence among US consumers unexpectedly improved in Aug, boosting the prospect of stronger household spending in Q3. The Thomson Reuters/University of Michigan preliminary Aug index of consumer sentiment increased to 73.6, the highest level since May, from 72.3 the prior month. The gauge was projected to be little changed at 72.2. After 2 months of sliding sentiment, the Aug advance indicates consumers may be feeling the benefits of growing payrolls & rising confidence raises the odds households can sustain the pickup in retail sales from Jul. But this sentiment reading for Aug contrasts with the Bloomberg Consumer Comfort Index, which slumped last week to the lowest level since Jan. The Michigan survey’s index of current conditions, which reflects Americans’ perceptions of their financial situation & whether they consider it a good time to buy big-ticket items like cars, improved to 87.6 from 82.7 the prior month. It is the highest number since Jan 2008. The index of consumer expectations 6 months from now, which more closely projects the direction of consumer spending, fell to 64.5, an 8 month low, from 65.6 in Jul. More moderately good news.
Once again there is very little going on in the markets. Too many are away on summer holiday, enjoying their profits. Dow is up about 40 this week, good enough to keep the bulls happy. Until Labor Day, sluggish market performance is expected although the bulls are still trying to take the Dow to new highs for this year.
Dow Jones Industrials
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