Dow slid 9, decliners barely ahead of advancers & NAZ was down a fraction. The Financial Index was off fractionally in the 236s. The MLP index slipped another 2 to the 424s & the REIT index lost a tad in the 277s. Junk bond funds were mixed & Treasuries rose. Oil lost ground in the 96s & gold gained 3.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
German factory orders rose in Dec as euro-area demand jumped, adding to signs that the region may be starting to recover from recession. Orders, increased 0.8% from Nov, when they fell 1.8%, the Economy Ministry in Berlin said, slightly ahead of the forecast of 0.7%. Factory orders from the euro area surged 7%. The report is the latest to suggest the euro economy is starting to improve after the sovereign debt crisis pushed it into recession last year. Spanish house prices halted a 3-year decline in Jan & euro-area economic confidence rose to a 7-month high. Rising demand in the bloc would bolster growth in Germany & help it rebound from a contraction in Q4 2012.
German Factory Orders Add to Signs of European Recovery: Economy
Photo: Bloomberg
The pres called for Congress to postpone automatic spending cuts scheduled for Mar 1 which puts the burden of how to replace those reductions on Senate Dems. Yesterday he urged the politicos to act on a short-term package of spending cuts & tax-code changes, such as limiting tax breaks, to replace part of the $1.2T in across-the- board reductions. The pres is scheduled to speak to Senate Dems today. “Deep, indiscriminate cuts to things like education and training, energy and national security will cost us jobs and slow down our recovery,” Obama said. “This doesn’t have to happen.” The Mar 1 deadline marks another fiscal showdown between the administration & Reps, who control the House. Rep leaders have said they expect the spending cuts to take effect, because they won’t agree to new tax revenue that Obama & other Dems are seeking along with a different blend of spending cuts. “We believe there is a better way to reduce the deficit, but Americans do not support sacrificing real spending cuts for more tax hikes,” House Speaker Boehner said. The House plans to vote today on legislation that would require Obama to submit a plan by Apr 1 on how & when he would balance the federal budget.
Obama Urges Congress to Delay Automatic Spending Cuts
Markets are meandering again while the budget debate heats up. The pres thinks he has a mandate to whatever he wants, but the Reps are in a fighting mood after recent defeats. The Dems don't want to make serious cuts. Looming spending cuts would be a serious threat to economic recovery. Sadly nobody knows where these talks will lead but the markets are not disturbed by the uncertainty.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Tre3asury yields:
U.S. 3-month |
0.068% | |
U.S. 2-year |
0.252% | |
U.S. 10-year |
1.986% |
Photo: Bloomberg
German factory orders rose in Dec as euro-area demand jumped, adding to signs that the region may be starting to recover from recession. Orders, increased 0.8% from Nov, when they fell 1.8%, the Economy Ministry in Berlin said, slightly ahead of the forecast of 0.7%. Factory orders from the euro area surged 7%. The report is the latest to suggest the euro economy is starting to improve after the sovereign debt crisis pushed it into recession last year. Spanish house prices halted a 3-year decline in Jan & euro-area economic confidence rose to a 7-month high. Rising demand in the bloc would bolster growth in Germany & help it rebound from a contraction in Q4 2012.
German Factory Orders Add to Signs of European Recovery: Economy
Photo: Bloomberg
The pres called for Congress to postpone automatic spending cuts scheduled for Mar 1 which puts the burden of how to replace those reductions on Senate Dems. Yesterday he urged the politicos to act on a short-term package of spending cuts & tax-code changes, such as limiting tax breaks, to replace part of the $1.2T in across-the- board reductions. The pres is scheduled to speak to Senate Dems today. “Deep, indiscriminate cuts to things like education and training, energy and national security will cost us jobs and slow down our recovery,” Obama said. “This doesn’t have to happen.” The Mar 1 deadline marks another fiscal showdown between the administration & Reps, who control the House. Rep leaders have said they expect the spending cuts to take effect, because they won’t agree to new tax revenue that Obama & other Dems are seeking along with a different blend of spending cuts. “We believe there is a better way to reduce the deficit, but Americans do not support sacrificing real spending cuts for more tax hikes,” House Speaker Boehner said. The House plans to vote today on legislation that would require Obama to submit a plan by Apr 1 on how & when he would balance the federal budget.
Obama Urges Congress to Delay Automatic Spending Cuts
Markets are meandering again while the budget debate heats up. The pres thinks he has a mandate to whatever he wants, but the Reps are in a fighting mood after recent defeats. The Dems don't want to make serious cuts. Looming spending cuts would be a serious threat to economic recovery. Sadly nobody knows where these talks will lead but the markets are not disturbed by the uncertainty.
Dow Jones Industrials
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