Dow gained 52, advancers over decliners almost 3-1 & NAZ added 21. The Financial Index rose 1+ to the 212s. The MLP index was up 1+ to 398 & the REIT index was flattish in the 258s. Junk bond funds edged higher & Treasuries slid lower. Oil & gold also are having a good day.
Fewer Americans filed first-time claims for unemployment insurance payments last week as the labor market disruptions wrought by superstorm Sandy ebbed. Applications for benefits decreased 23K to 393K according to the Labor Dept. The forecast was for 390K claims. The drop in claims indicates the job market in the mid- Atlantic region, which employs about 14% of US workers, may be stabilizing after Sandy. Apart from the storm-related damage, job creation will probably be limited as companies navigate the global economic slowdown & the fiscal outlook. The 4-week moving average climbed to 405K from 397K. The number continuing to collect benefits dropped 70K to 3.29M. The continuing claims figure does not include the number of workers receiving extended benefits under federal programs. Those who’ve used up their traditional benefits & are now collecting emergency & extended payments decreased by 37K to 2.16M.
Jobless Claims in U.S. Decrease as Sandy Effect Dissipates
Photo: Bloomberg
The US economy grew faster than initially thought in Q3 as restocking by businesses provided a big boost, but consumer & business spending were revised lower in a sobering reminder of the recovery's underlying weakness. GDP expanded at a 2.7% annual rate according to the Commerce Dept, as export growth also helped to offset the weakest consumer spending & first drop in business investment in more than a year. While the growth pace was much quicker than the 2% rate estimated last month & the best since Q4 of 2011, it was hardly a sign of strength as the lift from inventories will likely be lost in Q4. The economy is also bracing for deep cuts in gov spending & tax increases early next year which could suck $600B from the economy & fuel a fresh recession. Business inventories added 0.77 percentage point to Q3 GDP growth. They were previously estimated to have subtracted 0.12 percentage point. Excluding inventories, GDP rose at a revised 1.9% rate, underscoring sluggish demand. Final sales of goods & services produced in the US had been previously estimated to have increased at a 2.1% pace. A smaller trade deficit was also a factor behind the upward revision to GDP as export growth outpaced a rise in imports. But the trend in exports is unlikely to be sustained given slowing global demand, especially in China & debt troubled Europe. Trade contributed 0.14 percentage point to GDP growth instead of subtracting 0.18 percentage point, as previously reported. Other details of the report were rather weak. Consumer spending was lowered to a 1.4% growth rate, the slowest since Q2 of 2011, from the 2% gain previously reported.
U.S. Economy Grew at 2.7% Rate, More Than First Estimated
Photo: Yahoo
Tiffany lowered its fiscal-year sales and profit forecast for the 3rd straight qtr & reported lower-than-expected revenue & earnings after a drop in same-store sales in its key Asia market. The region has been affected by the economic slowdown in China. Sales at Asian stores open at least a year fell 4%, excluding currency effects. TIF now expects global net sales to rise 5-6% for the year ending in Jan, down one percentage point from its most recent forecast. CEO Michael Kowalski said the company had a "cautious" near-term view of the global economy, but expects results to start improving during the current holiday season, when TIF rings up 1/3 of annual sales. Sales were also weak in its least expensive category, silver jewelry, suggesting price-conscious shoppers were hesitant to spend money on items they didn't need right away. The company gets about 1/4 of its sales from relatively inexpensive items such as sterling silver key charm. It projected full-year EPS of $3.20-$3.40, down from an earlier range of $3.55-$3.70. Analysts have a $3.60 forecast. Global sales rose 3.8% to $853M in Q3, while sales at stores open at least a year across the chain rose 1%. Analysts expected sales of $859M. EPS fell to 49¢ from 70¢ a year earlier. The stock plunged $5.16.
Markets are doing well again today, mostly on hopes about fiscal cliff talks. But words are cheap & the 2 sides remain far apart. The Reps are putting higher taxes on the table, which doesn't mean a lot, & the Dems have done little. The TIF report is chilling, a reminder that even China, a strong & huge economy, is feeling the effects of a global slowdown. Dow is at a 3 week high. Maybe "smart money" is selling into this rally.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.086% | |
U.S. 2-year |
0.258% | |
U.S. 10-year |
1.628% |
| CLF13.NYM | ....Crude Oil Jan 13 | ...88.52 | ..... 2.03 | (2.4%) |
| GCX12.CMX | ...Gold Nov 12 | ....1,739.80 | ... 23.30 | (1.4%) |
Fewer Americans filed first-time claims for unemployment insurance payments last week as the labor market disruptions wrought by superstorm Sandy ebbed. Applications for benefits decreased 23K to 393K according to the Labor Dept. The forecast was for 390K claims. The drop in claims indicates the job market in the mid- Atlantic region, which employs about 14% of US workers, may be stabilizing after Sandy. Apart from the storm-related damage, job creation will probably be limited as companies navigate the global economic slowdown & the fiscal outlook. The 4-week moving average climbed to 405K from 397K. The number continuing to collect benefits dropped 70K to 3.29M. The continuing claims figure does not include the number of workers receiving extended benefits under federal programs. Those who’ve used up their traditional benefits & are now collecting emergency & extended payments decreased by 37K to 2.16M.
Jobless Claims in U.S. Decrease as Sandy Effect Dissipates
The US economy grew faster than initially thought in Q3 as restocking by businesses provided a big boost, but consumer & business spending were revised lower in a sobering reminder of the recovery's underlying weakness. GDP expanded at a 2.7% annual rate according to the Commerce Dept, as export growth also helped to offset the weakest consumer spending & first drop in business investment in more than a year. While the growth pace was much quicker than the 2% rate estimated last month & the best since Q4 of 2011, it was hardly a sign of strength as the lift from inventories will likely be lost in Q4. The economy is also bracing for deep cuts in gov spending & tax increases early next year which could suck $600B from the economy & fuel a fresh recession. Business inventories added 0.77 percentage point to Q3 GDP growth. They were previously estimated to have subtracted 0.12 percentage point. Excluding inventories, GDP rose at a revised 1.9% rate, underscoring sluggish demand. Final sales of goods & services produced in the US had been previously estimated to have increased at a 2.1% pace. A smaller trade deficit was also a factor behind the upward revision to GDP as export growth outpaced a rise in imports. But the trend in exports is unlikely to be sustained given slowing global demand, especially in China & debt troubled Europe. Trade contributed 0.14 percentage point to GDP growth instead of subtracting 0.18 percentage point, as previously reported. Other details of the report were rather weak. Consumer spending was lowered to a 1.4% growth rate, the slowest since Q2 of 2011, from the 2% gain previously reported.
U.S. Economy Grew at 2.7% Rate, More Than First Estimated
Photo: Yahoo
Tiffany lowered its fiscal-year sales and profit forecast for the 3rd straight qtr & reported lower-than-expected revenue & earnings after a drop in same-store sales in its key Asia market. The region has been affected by the economic slowdown in China. Sales at Asian stores open at least a year fell 4%, excluding currency effects. TIF now expects global net sales to rise 5-6% for the year ending in Jan, down one percentage point from its most recent forecast. CEO Michael Kowalski said the company had a "cautious" near-term view of the global economy, but expects results to start improving during the current holiday season, when TIF rings up 1/3 of annual sales. Sales were also weak in its least expensive category, silver jewelry, suggesting price-conscious shoppers were hesitant to spend money on items they didn't need right away. The company gets about 1/4 of its sales from relatively inexpensive items such as sterling silver key charm. It projected full-year EPS of $3.20-$3.40, down from an earlier range of $3.55-$3.70. Analysts have a $3.60 forecast. Global sales rose 3.8% to $853M in Q3, while sales at stores open at least a year across the chain rose 1%. Analysts expected sales of $859M. EPS fell to 49¢ from 70¢ a year earlier. The stock plunged $5.16.
Markets are doing well again today, mostly on hopes about fiscal cliff talks. But words are cheap & the 2 sides remain far apart. The Reps are putting higher taxes on the table, which doesn't mean a lot, & the Dems have done little. The TIF report is chilling, a reminder that even China, a strong & huge economy, is feeling the effects of a global slowdown. Dow is at a 3 week high. Maybe "smart money" is selling into this rally.
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