Dow went up 111 for a new record & closed at the highs, advancers ahead of decliners 2-1 & NAZ rose 17. The Financial Index added 1+ to 246 (3 shy of its high earlier this month). The MLP index shot up 3 to the 451s, yet another record, & the REIT index gained almost 2 to 285 (a new multi year close after going flattish all month). Junk bond funds were higher & the 10 year Treasury found a few buyers. As in the AM, oil went up while gold pulled back.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Europe's leading institutions clashed over what shape future financial rescues will take following the bailout for Cyprus, creating further uncertainty & concern about the safety of keeping large deposits in European banks. In a €10 B bailout deal clinched yesterday, Cyprus agreed to dissolve the country's 2nd-largest bank, inflicting significant losses, possibly up to 40%, on all deposits larger than €100K ($130K). That step, agreed with the other EU countries & the IMF, marks the first time in Europe's 3 year debt crisis that large deposit holders (wealthy savers, business people or institutions) will be forced to take losses as part of a eurozone rescue. The move was hailed later that day by Jeroen Dijsselbloem, the head of the Eurogroup of euro finance ministers, who said that forcing losses on banks' shareholders, bondholders & even large depositors could become the template for future rescues. However today, Benoit Coeure, a member of the executive board of the ECB, bluntly dismissed the idea saying that Dijsselbloem was "wrong" to say that because the solution agreed on for Cyprus cannot be a model for the eurozone. Cyprus's situation is unique because of the island nation's outsized financial sector, including large deposits from foreigners, added Coeure, who sits on the ECB's 6 member executive board. Also today a leading European Parliament lawmaker further muddied the waters by calling for the enforcement of losses on big savers to be enshrined in in law in cases of bank failures. Deposits of up to €100K are guaranteed by a state-backed deposit insurance scheme. In the US, deposits are generally insured by the FDIC up to $250K. "When a bank is in crisis, deposits below €100,000 shall be protected, but once the shareholders have lost value, the investors have lost money, then large deposits are in the last row of the pecking hierarchy," said Gunnar Hokmark who is leading negotiations on finalizing a set of laws for winding up problem banks. "Deposits will not be bailed-in until nearly all others tools are exhausted," he said. "But above the 100,000 euros level, there must be some risk, otherwise we wouldn't have the deposit insurance guarantee." Nothing like more uncertainty!
ECB, Eurogroup at odds over Cyprus rescue as model AP
Toyota after reporting a slower sales pace in Feb, is boosting its US auto market outlook on improving consumer confidence, a better economy & demand for Camry sedans & Prius hybrids. It expects drivers to purchase 15.3M new cars & light trucks in 2013, 5½% more than a year ago, said Bob Carter, senior VP for the company’s US sales. The world’s largest carmaker plans to sell more than 2.2M Toyota, Lexus & Scion vehicles in the US, up 50K from its Jan estimate. “We’re optimistic about 2013 because the US economy is forecast to continue improving,” helped by the job market, consumer confidence and the housing recovery, Carter said Sales in Mar look “very good” for all manufacturers, he said. New-car buyers, shunned by lenders just 4 years ago, are benefiting from historically low interest rates & better access to financing. US light-vehicle sales in Jan-Feb rose 8.4% to 2.24M, according to researcher Autodata. The stock was up 22¢.
Toyota Boosts 2013 U.S. Light-Vehicle Sales Forecast
Photo: Bloomberg
Residential real estate prices increased in Jan by the most since Jun 2006, indicating the US housing market strengthened at the start of the year. The S&P/Case-Shiller index of property values in 20 cities climbed 8.1% in Jan from the same month in 2012 last year after rising 6.8% for all of 2012, the group said. The increase exceeded the 7.9% forecast. All 20 cities in the index showed a year-over-year increase, led by a 23% surge in Phoenix. The change in home prices in New York, up 0.6%, turned positive after declining during the previous 28 months. Improving home values will lure more buyers into the real estate market by inducing current owners to put their properties up for sale & prompting builders to begin work on new dwellings. Historically low lending rates & a stronger labor market have helped fueled the rebound in housing, a source of strength for the economy.
Home Prices in 20 U.S. Cities Climb by Most Since June 2006
The bulls returned & were able to take the Dow to a new record but market breadth was less than impressive. While favorable, the economic data continues to be mediocre with more of the same results. Housing is on the mend & the auto industry is doing well. MLPs continue on fire with the index up 66 YTD. REITs are doing well, but have only been going sideways in Mar. Asian markets tonight will climb, following the US markets. Then there's just 2 days of trading left in the holiday shortened week & month. The balance of the week has a bullish tone with next week bringing the first whiffs of Mar economic data. I still am nervous about the macro economic picture around the world.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.074% | |
U.S. 2-year |
0.248% | |
U.S. 10-year |
1.904% |
| CLK13.NYM | ...Crude Oil May 13 | ....95.93 | ... 1.12 | (1.2%) |
Europe's leading institutions clashed over what shape future financial rescues will take following the bailout for Cyprus, creating further uncertainty & concern about the safety of keeping large deposits in European banks. In a €10 B bailout deal clinched yesterday, Cyprus agreed to dissolve the country's 2nd-largest bank, inflicting significant losses, possibly up to 40%, on all deposits larger than €100K ($130K). That step, agreed with the other EU countries & the IMF, marks the first time in Europe's 3 year debt crisis that large deposit holders (wealthy savers, business people or institutions) will be forced to take losses as part of a eurozone rescue. The move was hailed later that day by Jeroen Dijsselbloem, the head of the Eurogroup of euro finance ministers, who said that forcing losses on banks' shareholders, bondholders & even large depositors could become the template for future rescues. However today, Benoit Coeure, a member of the executive board of the ECB, bluntly dismissed the idea saying that Dijsselbloem was "wrong" to say that because the solution agreed on for Cyprus cannot be a model for the eurozone. Cyprus's situation is unique because of the island nation's outsized financial sector, including large deposits from foreigners, added Coeure, who sits on the ECB's 6 member executive board. Also today a leading European Parliament lawmaker further muddied the waters by calling for the enforcement of losses on big savers to be enshrined in in law in cases of bank failures. Deposits of up to €100K are guaranteed by a state-backed deposit insurance scheme. In the US, deposits are generally insured by the FDIC up to $250K. "When a bank is in crisis, deposits below €100,000 shall be protected, but once the shareholders have lost value, the investors have lost money, then large deposits are in the last row of the pecking hierarchy," said Gunnar Hokmark who is leading negotiations on finalizing a set of laws for winding up problem banks. "Deposits will not be bailed-in until nearly all others tools are exhausted," he said. "But above the 100,000 euros level, there must be some risk, otherwise we wouldn't have the deposit insurance guarantee." Nothing like more uncertainty!
ECB, Eurogroup at odds over Cyprus rescue as model AP
Toyota after reporting a slower sales pace in Feb, is boosting its US auto market outlook on improving consumer confidence, a better economy & demand for Camry sedans & Prius hybrids. It expects drivers to purchase 15.3M new cars & light trucks in 2013, 5½% more than a year ago, said Bob Carter, senior VP for the company’s US sales. The world’s largest carmaker plans to sell more than 2.2M Toyota, Lexus & Scion vehicles in the US, up 50K from its Jan estimate. “We’re optimistic about 2013 because the US economy is forecast to continue improving,” helped by the job market, consumer confidence and the housing recovery, Carter said Sales in Mar look “very good” for all manufacturers, he said. New-car buyers, shunned by lenders just 4 years ago, are benefiting from historically low interest rates & better access to financing. US light-vehicle sales in Jan-Feb rose 8.4% to 2.24M, according to researcher Autodata. The stock was up 22¢.
Toyota Boosts 2013 U.S. Light-Vehicle Sales Forecast
Toyota Motor (TM)
Photo: Bloomberg
Residential real estate prices increased in Jan by the most since Jun 2006, indicating the US housing market strengthened at the start of the year. The S&P/Case-Shiller index of property values in 20 cities climbed 8.1% in Jan from the same month in 2012 last year after rising 6.8% for all of 2012, the group said. The increase exceeded the 7.9% forecast. All 20 cities in the index showed a year-over-year increase, led by a 23% surge in Phoenix. The change in home prices in New York, up 0.6%, turned positive after declining during the previous 28 months. Improving home values will lure more buyers into the real estate market by inducing current owners to put their properties up for sale & prompting builders to begin work on new dwellings. Historically low lending rates & a stronger labor market have helped fueled the rebound in housing, a source of strength for the economy.
Home Prices in 20 U.S. Cities Climb by Most Since June 2006
The bulls returned & were able to take the Dow to a new record but market breadth was less than impressive. While favorable, the economic data continues to be mediocre with more of the same results. Housing is on the mend & the auto industry is doing well. MLPs continue on fire with the index up 66 YTD. REITs are doing well, but have only been going sideways in Mar. Asian markets tonight will climb, following the US markets. Then there's just 2 days of trading left in the holiday shortened week & month. The balance of the week has a bullish tone with next week bringing the first whiffs of Mar economic data. I still am nervous about the macro economic picture around the world.
Dow Jones Industrials
No comments:
Post a Comment