Dow shot up 221, advancers ahead of decliners 4-1 & NAZ jupmed 51. The Financial Index soared 4+ to 208, a new high since the start of May. The MLP index was off a fraction in the 395s & the REIT index rose 2 to 270 (close to its yearly highs). Junk bond funds slipped & Treasuries saw selling as stocks traded higher. Oil went up along with stocks but gold also is having a good day, going over 1700, on negative bets against more ECB stimulus.
Photo: Yahoo
The number filing new claims for jobless benefits fell last week to its lowest level in a month. Initial claims for unemployment benefits dropped 12K to 365K, according to the Labor Dept. It was the first drop in new claims since the week ending Aug 4. The forecast had been for claims dipping to 370K. But the prior week's figure was revised up to show 3K more applications than previously reported. The 4-week moving average for new claims, a better measure of labor market trends, edged up to 371K. The state of unemployment & filing of jobless claims could determine whether the Federal Reserve will offer additional monetary stimulus to the economy at its Sep 12-13 meeting.
Jobless Claims in U.S. Decrease to Lowest Level in a Month
Photo: Yahoo
Why is this man smiling? Mario Draghi has unveiled a long-awaited program to buy bonds to help bring down the borrowing costs of Europe's struggling govs. The plan envisions no set limit on the number of bonds the ECB could buy, making the program "a fully effective backstop" against a further worsening of the debt crisis in the countries that use the €. The initiative, dubbed Outright Market Transactions or OMT, goes beyond an earlier, limited bond purchase program that was not big enough to decisively lower borrowing costs. Draghi emphasized that the new, unlimited program by contrast was open-ended and had "no quantitative limits." He said it would work because it was "very very different from any program we have had in the past." The new program would continue until its goal of lower borrowing costs is achieved, or a gov violates the conditions attached to getting the help. The € was flat, just under $1.26 after rising a nickel in the last month..
Draghi Says Officials Agree on ECB Unlimited Bond-Buying
Photo: Bloomberg
A private survey shows US businesses stepped up hiring in Aug, an encouraging sign ahead of the Fri employment report. Payroll provider ADP says businesses added 201K jobs last month, the most reported since Mar. ADP also said Jul job growth was stronger than first thought when employers created 173K jobs, 10K more jobs than originally reported. The report only covers hiring in the private sector & excludes gov job growth. The Labor Dept will offer a more complete picture of Aug hiring tomorrow. The 2 surveys reported roughly the same private-sector job creation in Jul, but have diverged sharply in previous months.
ADP Says U.S. Companies Added 201,000 Workers in August
The stock markets are feeling very good after hearing about more bond buying in Europe. The ECB fells that throwing more money at a nagging problems will cure it. For the time being it sound good, but not sure how long this enthusiasm will last. The jobless numbers were favorable which could lead to a helpful jobs report tomorrow. Even after today's surge, Dow remains in its sideways trading trading range which has lasted more than 7 months. But it's 120 below its 2012 highs, an important objective. At the same time, contrary thinking is driving gold higher.
AMJ (Alerian MLP Index tracking fund)
Treasuries:
U.S. 3-month | 0.101% | |
U.S. 2-year | 0.254% | |
U.S. 10-year | 1.655% |
| CLV12.NYM | ....Crude Oil Oct 12... | 96.89 | ... 1.53 | (1.6%) |
| GCU12.CMX | ...Gold Sep 12 | ...1,706.00 | ... 15.20 | (0.9%) |
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The number filing new claims for jobless benefits fell last week to its lowest level in a month. Initial claims for unemployment benefits dropped 12K to 365K, according to the Labor Dept. It was the first drop in new claims since the week ending Aug 4. The forecast had been for claims dipping to 370K. But the prior week's figure was revised up to show 3K more applications than previously reported. The 4-week moving average for new claims, a better measure of labor market trends, edged up to 371K. The state of unemployment & filing of jobless claims could determine whether the Federal Reserve will offer additional monetary stimulus to the economy at its Sep 12-13 meeting.
Jobless Claims in U.S. Decrease to Lowest Level in a Month
Why is this man smiling? Mario Draghi has unveiled a long-awaited program to buy bonds to help bring down the borrowing costs of Europe's struggling govs. The plan envisions no set limit on the number of bonds the ECB could buy, making the program "a fully effective backstop" against a further worsening of the debt crisis in the countries that use the €. The initiative, dubbed Outright Market Transactions or OMT, goes beyond an earlier, limited bond purchase program that was not big enough to decisively lower borrowing costs. Draghi emphasized that the new, unlimited program by contrast was open-ended and had "no quantitative limits." He said it would work because it was "very very different from any program we have had in the past." The new program would continue until its goal of lower borrowing costs is achieved, or a gov violates the conditions attached to getting the help. The € was flat, just under $1.26 after rising a nickel in the last month..
Draghi Says Officials Agree on ECB Unlimited Bond-Buying
A private survey shows US businesses stepped up hiring in Aug, an encouraging sign ahead of the Fri employment report. Payroll provider ADP says businesses added 201K jobs last month, the most reported since Mar. ADP also said Jul job growth was stronger than first thought when employers created 173K jobs, 10K more jobs than originally reported. The report only covers hiring in the private sector & excludes gov job growth. The Labor Dept will offer a more complete picture of Aug hiring tomorrow. The 2 surveys reported roughly the same private-sector job creation in Jul, but have diverged sharply in previous months.
ADP Says U.S. Companies Added 201,000 Workers in August
The stock markets are feeling very good after hearing about more bond buying in Europe. The ECB fells that throwing more money at a nagging problems will cure it. For the time being it sound good, but not sure how long this enthusiasm will last. The jobless numbers were favorable which could lead to a helpful jobs report tomorrow. Even after today's surge, Dow remains in its sideways trading trading range which has lasted more than 7 months. But it's 120 below its 2012 highs, an important objective. At the same time, contrary thinking is driving gold higher.
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