Dow was off 15, decliners over advancers 5-2 & NAZ lost 8. The Financial Index lost 1+ to the 213s. The MLP index fell 1 to 403 & the REIT index was off 3½ to the 266s (10 below its recent yearly high). Junk bond funds were mixed & Treasuries rose. Oil fell to a 6-week low as there were more
applications than forecast for unemployment benefits & as the € weakened. Gold continues in its sideways trading range.
The number seeking unemployment benefits fell only slightly last week to 382K, suggesting that hiring remains weak. The Labor Dept said that applications declined 3K from the previous week, which was revised up. The 4-week average rose for the 5th straight week to 378K, the highest level in nearly 3 months. Weekly applications are a proxy for layoffs & when they consistently fall below 375K, it suggests hiring is strong enough to lower the unemployment rate. The number receiving unemployment aid fell sharply earlier this month. About 5.2M received benefits last week, a drop of about 220K from the previous week. The economy isn't growing fast enough to support much more hiring.
More Americans Than Forecast Filed Jobless Claims
Greece's coalition gov parties failed again to agree on a major new austerity package that had been promised for this week and is crucial to the financial survival of the country. Prime Minister Samaras resumed meetings with the leaders of parties backing his coalition gov to discuss the package worth at least €11.5B ($15B). Politicians have had trouble agreeing on the details of the package, which is expected to include more salary & pension cuts for 2013-14. Critics say it's just going to make the recession worse & make it more difficult for Greece to pay down its debts. "Nothing has been finalized. All those who hastened to declare that the measures have been decided were mistaken," junior coalition partner Fotis Kouvelis said after talks with conservative Samaras & a Socialist party leader. Finance Minister Stournaras confirmed the 3-party talks had again failed to reach a final deal, describing the negotiations as "very difficult." Asked when he thought the agreement would be reached, he replied: "I don't know. I think it will take a few more days." The new cuts are a source of indignation among many Greeks, including judges & police. This debt mess remains stuck in neutral.
Greek deal on austerity measures still elusive AP
Exxon Mobil, a Dow stock & Dividend Aristocrat, will spend $1.6B to boost holdings in the massive Bakken oil field in North Dakota & Montana by 50%. It will buy all of the Bakken shale assets held by Denbury Resources (DNR) for $1.6B in cash. DNR will also receive Exxon's interest in 2 fields in Wyoming & Texas. XOM will acquire 196K acres, boosting its holdings in the region to almost 600K acres. The acreage acquired is expected to produce 15K barrels of oil & other hydrocarbons per day in H2 of this year. Oil production in the Bakken has soared in recent years, recently passing 600K barrels per day, or about 10% of total US production, helping fuel the biggest jump in domestic oil production in more than 40 years. North Dakota recently passed Alaska & California to become the 2nd biggest oil producing state in the US (behind Texas). The deal is relatively small for XOM, which produced an average of 4.2M barrels of oil & other hydrocarbons per day. But even small additions help because oil & gas giants struggle every year to secure enough new resources to replace all that they've sold. The purchase increases its US oil production by 3% & makes XOM one of the biggest leaseholders in the Bakken. XOM was up 30¢.
Exxon spends $1.6B on North Dakota field AP
This is another lackluster day of trading. There was no significant news, although the article about Greece is a reminder that the euro debt mess is plodding along with no end in sight. Excitement out of the MidEast is reduced, but under the surface tensions remain high. Dow has hardly budged all week.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.101% | |
U.S. 2-year |
0.254% | |
U.S. 10-year |
1.738% |
| CLV12.NYM | ...Crude Oil Oct 12 | ...91.67 | ... 0.31 | (0.3%) |
| GCU12.CMX | ...Gold Sep 12 | ....1,762.00 | ... 7.00 | (0.4%) |
Get the latest daily market update below:
The number seeking unemployment benefits fell only slightly last week to 382K, suggesting that hiring remains weak. The Labor Dept said that applications declined 3K from the previous week, which was revised up. The 4-week average rose for the 5th straight week to 378K, the highest level in nearly 3 months. Weekly applications are a proxy for layoffs & when they consistently fall below 375K, it suggests hiring is strong enough to lower the unemployment rate. The number receiving unemployment aid fell sharply earlier this month. About 5.2M received benefits last week, a drop of about 220K from the previous week. The economy isn't growing fast enough to support much more hiring.
More Americans Than Forecast Filed Jobless Claims
Greece's coalition gov parties failed again to agree on a major new austerity package that had been promised for this week and is crucial to the financial survival of the country. Prime Minister Samaras resumed meetings with the leaders of parties backing his coalition gov to discuss the package worth at least €11.5B ($15B). Politicians have had trouble agreeing on the details of the package, which is expected to include more salary & pension cuts for 2013-14. Critics say it's just going to make the recession worse & make it more difficult for Greece to pay down its debts. "Nothing has been finalized. All those who hastened to declare that the measures have been decided were mistaken," junior coalition partner Fotis Kouvelis said after talks with conservative Samaras & a Socialist party leader. Finance Minister Stournaras confirmed the 3-party talks had again failed to reach a final deal, describing the negotiations as "very difficult." Asked when he thought the agreement would be reached, he replied: "I don't know. I think it will take a few more days." The new cuts are a source of indignation among many Greeks, including judges & police. This debt mess remains stuck in neutral.
Greek deal on austerity measures still elusive AP
Exxon Mobil, a Dow stock & Dividend Aristocrat, will spend $1.6B to boost holdings in the massive Bakken oil field in North Dakota & Montana by 50%. It will buy all of the Bakken shale assets held by Denbury Resources (DNR) for $1.6B in cash. DNR will also receive Exxon's interest in 2 fields in Wyoming & Texas. XOM will acquire 196K acres, boosting its holdings in the region to almost 600K acres. The acreage acquired is expected to produce 15K barrels of oil & other hydrocarbons per day in H2 of this year. Oil production in the Bakken has soared in recent years, recently passing 600K barrels per day, or about 10% of total US production, helping fuel the biggest jump in domestic oil production in more than 40 years. North Dakota recently passed Alaska & California to become the 2nd biggest oil producing state in the US (behind Texas). The deal is relatively small for XOM, which produced an average of 4.2M barrels of oil & other hydrocarbons per day. But even small additions help because oil & gas giants struggle every year to secure enough new resources to replace all that they've sold. The purchase increases its US oil production by 3% & makes XOM one of the biggest leaseholders in the Bakken. XOM was up 30¢.
Exxon spends $1.6B on North Dakota field AP
Exxon Mobil (XOM)
This is another lackluster day of trading. There was no significant news, although the article about Greece is a reminder that the euro debt mess is plodding along with no end in sight. Excitement out of the MidEast is reduced, but under the surface tensions remain high. Dow has hardly budged all week.
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