Friday, November 30, 2012

Markets meander looking for direction from DC

Dow was up all of 3, decliners were slightly ahead of advancers & NAZ lost 1.  The Financial Index slipped a fraction to the 211s.  The MLP index inched up a fraction in the 397s & the REIT index gained 1 to the 250s.  Junk bond funds were mixed to lower & Treasuries were flattish.  Oil gained but has been stuck in the mid 80s for more than a month & gold lost ground, remaining above 1700.    

AMJ (Alerian MLP Index tracking fund)


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Treasury yields:

U.S. 3-month

0.081%

U.S. 2-year

0.254%

U.S. 10-year

1.616%

CLF13.NYM...Crude Oil Jan 13...88.86 ...Up 0.79 (0.9%)

Live 24 hours gold chart [Kitco Inc.]





Microsoft Said to Speed Windows Upgrades to Compete With Google

Photo:   Bloomberg

Microsoft, a Dow stock, plans to overhaul how it develops the Windows operating system in a strategic shift aimed at keeping pace with nimbler rivals.  It aims to upgrade the software more frequently, about once a year, rather than every 2-3 years as it’s done in the past.  The company expects to unveil the first of these updates in 2013 after floundering as personal computers have lost ground to the smartphones & tablets.  US retail sales of PCs running Windows have declined 21%  since the company released the latest version of the operating system, Windows 8, according to NPD Group.  The decrease has been fueled by a 24% drop in sales of notebooks as many customers opt iPads or tablets.  The report compared sales from Oct 21 - Nov 17 of this year to the same period in 2011.  The stock was off 28¢.

Microsoft Said to Speed Windows Upgrades to Once a Year

Microsoft (MSFT)


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Eaton completed its acquisition of electrical equipment supplier Cooper Industries, an Irish based electrical components maker in a cash & stock deal valued at about $11.5B.  With the acquisition, ETN is seeking to expand its reach in the global electrical power & distribution business.  For the previous year, the combined Cooper company posted pro forma revenue of $21.8B, Cooper said.  ETN expects the integration of the 2 companies to take 2-3, depending on business conditions.  ETN makes electrical & hydraulic components, systems & services.  It also makes aerospace fueling, hydraulic & pneumatic systems for commercial & military use as well as vehicle drivetrain & powertrain systems.  The stock slid 8¢.

Eaton completes $11.46B deal for Cooper Industries AP

Eaton (ETN)


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John Boehner







Photo:   Yahoo

John Boehner, House Speaker, said negotiations to avoid the "fiscal cliff" are "almost nowhere."   hespoke after Reps disclosed that the administration was $1.6T (that's T as in trillion) in tax increases up front, as well as $50B in additional stimulus spending.  Boehner said the plan would be a "crippling blow" to an economy that is still struggling to find its footing.  "There's a stalemate. Let's not kid ourselves," he continued.  "Right now, we're almost nowhere,"  Even so, he added, he was determined to continue working with the president.  

Boehner on Fiscal Cliff Talks: 'We're Almost Nowhere'  CNBC


This turned out to be another another lackluster day.  There was no exciting corp news & the euro powers took the day off.  Keep in mind, they are still trying to solve the ugly euro debt mess.  Nobody knows what lies ahead before there is some kind of settlement on the US budget mess.  And then there is a good chance both sides will be unhappy.  Meanwhile business execs have to make decisions about investing in next year's uncertain environment.  That is not the way to start a new year!

Dow Jones Industrials


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http://tv.ino.com/free/video.html?vidid=livestream-latest

Markets little changed with no news on the fiscal cliff debate

Dow lost 9, advancers & decliners were about even & NAZ was off 6.  The MLP index fell 2 to 396 & the REIT index rose 1+ to the 258s.  With debt talks stuck in neutral, the markets are pretty much taking the day off.

AMJ (Alerian MLP Index tracking fund)


stock chart

Treasury yields:

U.S. 3-month

0.071%

U.S. 2-year

0.250%

U.S. 10-year

1.606%


CLF13.NYM...Crude Oil Jan 13...88.31 ...Up 0.24 (0.3%)

GCZ12.CMX...Gold Dec 12...1,724.00 ....Down 3.20  (0.2%)





Business activity in the US expanded in Nov for the first time in 3 months, showing superstorm Sandy is less damaging to the economy nationally.  The MNI Chicago Report’s business barometer rose to 50.4 from 49.9 in Oct (a reading of 50 is the dividing line between expansion & contraction).  The estimate of 53 was fore the gauge would to rise to 50.5.  This reading contrasts with earlier reports from the Philadelphia & New York region that showed the largest Atlantic storm ever to hit the US had halted manufacturing in that part of the country. 

Business Activity in U.S. Expands for First Time in Three Months


Consumer Spending in U.S. Declines as Sandy Reduces Wages

Photo:   Bloomberg

Spending by US consumers unexpectedly declined & incomes stagnated in Oct as superstorm Sandy kept some in the Northeast from getting to work or from shopping at malls & car dealerships.  Purchases decreased 0.2%, the weakest reading since May, after a 0.8% gain in the prior month, accordin to the Commerce Dept.  The estimate called for no change in nominal sales.  Incomes were unchanged, held down by a drop in wages caused by Sandy.  The storm shuttered hundreds of retailers when it made landfall on Oct 29, temporarily countering the benefit from rising consumer sentiment that has brightened the holiday- shopping outlook.  Faster job & wage gains would help stoke household spending after a Q3 slowdown, helping explain why the Federal Reserve is pursuing policy aimed at spurring employment.

Consumer Spending in U.S. Declines as Sandy Reduces Wages


This is another semi-holiday in the markets with nothing coming out of DC other than babble.  This behavior will conitnue for at least another 4 weeks & I don't think the markets will take this delay very well.  On the plus side for the bulls, Dow is barely holding above 13K & NAZ is hanging in there above 3K.  But this strength in the face of dreary news coming from DC may not last very long.

Dow Jones Industrials


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