Dow is up 9, advancers barely ahead of decliners & NAZ went up 8. The Financial Index was flat at 237. The MLP index rose 1+ to the 431s & the REIT index slipped pennies at 280. Junk bond funds were mixed & Treasuries gained. Oil lost pocket change & gold is now back below 1600.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
Fewer Americans than forecast filed unemployment applications last week, showing companies were looking beyond looming gov spending cuts & maintaining staffing. Jobless claims decreased by 22K to 344K in the holiday-shortened week, according to the Labor Dept. The forecast called for 360K applications. The number collecting unemployment dropped to the lowest level since Jun 2008. Stable headcounts are a sign demand is holding up in the face of rising gas prices, possible federal budget cuts & higher payroll taxes that are cutting into workers’ take-home pay. At the same time, further declines in layoffs are needed for bigger gains in hiring & boost an economy that only inched up in Q4.
Jobless Claims in U.S. Fell More Than Forecast Last Week
Photo: Bloomberg
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.109% | |
U.S. 2-year |
0.240% | |
U.S. 10-year |
1.889% |
| CLJ13.NYM | ....Crude Oil Apr 13 | ...92.84 | ... 0.08 | (0.1%) |
| GCG13.CMX | ...Gold Feb 13 | ..--.1,609.00 | ... 6.20 | (0.4%) |
Photo: Bloomberg
Fewer Americans than forecast filed unemployment applications last week, showing companies were looking beyond looming gov spending cuts & maintaining staffing. Jobless claims decreased by 22K to 344K in the holiday-shortened week, according to the Labor Dept. The forecast called for 360K applications. The number collecting unemployment dropped to the lowest level since Jun 2008. Stable headcounts are a sign demand is holding up in the face of rising gas prices, possible federal budget cuts & higher payroll taxes that are cutting into workers’ take-home pay. At the same time, further declines in layoffs are needed for bigger gains in hiring & boost an economy that only inched up in Q4.
Jobless Claims in U.S. Fell More Than Forecast Last Week
Photo: Bloomberg
The US economy managed to
barely expand in Q4, erasing a previously
estimated contraction, as the smallest trade deficit in almost 3 years helped overcome the biggest plunge in defense spending since the Vietnam War era. GDP grew at a 0.1% annual rate,
up from a previously estimated 0.1% drop, revised figures
from the Commerce Dept which compares with a forecasted 0.5% gain. Federal military outlays declined at a
22% annual pace, the biggest decrease since 1972. The pace of growth indicates Federal Reserve policy makers
are likely to maintain asset purchases intended to boost the
expansion, which may be curbed by automatic gov spending cuts set to take effect tomorrow. At the same time, healing in
the residential real estate market & sustained gains in consumer spending even as the payroll tax rose show the economy
probably picked up at the start of this year. GDP grew at a 3.1% rate in Q3 & for all of 2012 expanded 2.2% after a 1.8% increase in
the prior year. That's a VERY slow rate of growth for a recovery.
Economy Expands at Weakest Pace Since 2011
Photo: Bloomberg
New car buyers, shunned by lenders just 4 years ago, now are benefiting from historically low interest rates & more-available credit, pacing a US auto market that is hovering near pre-recession levels. Light-vehicle sales probably climbed 3.7% in Feb to 1.19M, based the estimate. The annualized industry sales rate may have matched the Jan pace of 15.3M. General Motors (GM), whose former finance unit needed a bailout because of losses on subprime home mortgages, saw “a number of lenders” completely exit auto leasing during the recession, said Kurt McNeil, VP of US sales operations. Banks reported the most common rate for a 48-month new-car loan was only 4.82% in Nov, the most-recent reporting period. The rates have dropped from more than 7% before the drop in interest rates over 4 years ago. The auto industry has a nice recovery.
Auto Sales Reach Pre-Recession Level on Low Financing
Traders were disappointed with the GDP report. Weakness in defense spending was a big drag & an indication of what to expect when more gov cuts hit the economy in coming months (assuming there is no agreement in DC). Meanwhile MLPs continue strong with the index essentially at records levels reached this month. More oil & gas is being pulled from the ground which has made North Dakota the #2 state for oil production (behind Teaxs). Dow is within 100 or setting a new record high, but setting a new reocrd could be a struggle the way things are going. After its leap on Feb 1, Dow is up a modest 75.
Dow Jones Industrials
Economy Expands at Weakest Pace Since 2011
Photo: Bloomberg
New car buyers, shunned by lenders just 4 years ago, now are benefiting from historically low interest rates & more-available credit, pacing a US auto market that is hovering near pre-recession levels. Light-vehicle sales probably climbed 3.7% in Feb to 1.19M, based the estimate. The annualized industry sales rate may have matched the Jan pace of 15.3M. General Motors (GM), whose former finance unit needed a bailout because of losses on subprime home mortgages, saw “a number of lenders” completely exit auto leasing during the recession, said Kurt McNeil, VP of US sales operations. Banks reported the most common rate for a 48-month new-car loan was only 4.82% in Nov, the most-recent reporting period. The rates have dropped from more than 7% before the drop in interest rates over 4 years ago. The auto industry has a nice recovery.
Auto Sales Reach Pre-Recession Level on Low Financing
Traders were disappointed with the GDP report. Weakness in defense spending was a big drag & an indication of what to expect when more gov cuts hit the economy in coming months (assuming there is no agreement in DC). Meanwhile MLPs continue strong with the index essentially at records levels reached this month. More oil & gas is being pulled from the ground which has made North Dakota the #2 state for oil production (behind Teaxs). Dow is within 100 or setting a new record high, but setting a new reocrd could be a struggle the way things are going. After its leap on Feb 1, Dow is up a modest 75.
Dow Jones Industrials
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