Dow fell 74, decliners over advancers almost 2-1 & NAZ dropped 27. The Financial Index lost 1 to the 245s. The MLP rose 2+ to 440, setting a new record high & is up an astounding 55 YTD, while the REIT index was up fractionally in the 282s. Junk bond funds were mixed & Treasuries edged higher. Oil dropped as German manufacturing
output unexpectedly contracted in Mar, signaling the euro debt crisis is slowing growth in the region’s biggest economy. Gold was about even.
AMJ (Alerian MLP Index tracking fund)
Photo: Yahoo
The number filing new claims for jobless benefits edged higher last week, but a trend reading dropped to its lowest in 5 years. The Labor Dept said initial claims for unemployment benefits rose 2K to 336K, which was less than expected. The 4-week moving average fell 7K to 339K, the lowest level since Feb 2008. The prior week's claims figure was revised to show 2K more applications than previously reported. The number still receiving benefits under regular state programs after an initial week of aid rose 5K to 3.05M.
Initial Jobless Claims in U.S. Rise Less Than Forecast
The index of leading indicators in the US rose more than forecast in Feb. The Conference Board’s gauge of the outlook for the next 3-6 months climbed 0.5% for the 2nd straight month. The forecast called for an increase of 0.4%. 8 of the 10 indicators in the index contributed to the increase, helped by more building permits, fewer jobless claims & higher stock prices. “This reading increases hope that it may pick up some momentum in the second half of the year,” said Ken Goldstein from the Conference Board. The index of coincident indicators, a gauge of current economic activity, rose 0.2% in Feb after falling 1% in the prior month.
Index of Leading Economic Indicators in the U.S. Increases 0.5%
Photo: Bloomberg
Russia rebuffed Cyprus’s request for a bailout loan as the euro-area nation sought to salvage talks in Moscow by wooing investment in its energy reserves. Russia is unable to provide loans & will instead consider making investments in the Cypriot energy industry, Cyprus’s Finance Minister Michael Sarris said. He will have a later meeting with his Russian counterpart, Anton Siluanov (after Cyprus asked Russia for a loan of about €5B).. Cyprus offered energy & other assets in return (from offshore natural-gas fields) for a loan. The country is trying to overcome a deadlock after lawmakers rejected an unprecedented €5.8B euro levy on bank deposits imposed by euro-area finance ministers as a condition for a €10B rescue. Cyprus is offering Russia “opportunities,” including in banking & natural gas, in return for financial assistance, according to Sarris.
Cyprus Loan Request Spurned by Russia in Moscow, Sarris Says
Dow pulled back to more than 1 week lows. It had been vastly overbought while setting new records, this was expected. But fundamentals behind the decline are disturbing. The euro debt mess from a very small country drones on. Not to be forgotten, the US has more than its fair share of economic problems starting with the budget battle in DC. Meanwhile REITs are near near multi year highs & MLPs remain on fire because there is no recession in energy products. For the time being, bulls are taking a rest.
Dow Jones Industrials
disturbing
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.063% | |
U.S. 2-year |
0.244% | |
U.S. 10-year |
1.929% |
| CLK13.NYM | ...Crude Oil May 13 | ...92.85 | ... 0.65 | (0.7%) |
| GCH13.CMX | ...Gold Mar 13 | ......1,606.50 | ... 1.00 | (0.1%) |
Photo: Yahoo
The number filing new claims for jobless benefits edged higher last week, but a trend reading dropped to its lowest in 5 years. The Labor Dept said initial claims for unemployment benefits rose 2K to 336K, which was less than expected. The 4-week moving average fell 7K to 339K, the lowest level since Feb 2008. The prior week's claims figure was revised to show 2K more applications than previously reported. The number still receiving benefits under regular state programs after an initial week of aid rose 5K to 3.05M.
Initial Jobless Claims in U.S. Rise Less Than Forecast
The index of leading indicators in the US rose more than forecast in Feb. The Conference Board’s gauge of the outlook for the next 3-6 months climbed 0.5% for the 2nd straight month. The forecast called for an increase of 0.4%. 8 of the 10 indicators in the index contributed to the increase, helped by more building permits, fewer jobless claims & higher stock prices. “This reading increases hope that it may pick up some momentum in the second half of the year,” said Ken Goldstein from the Conference Board. The index of coincident indicators, a gauge of current economic activity, rose 0.2% in Feb after falling 1% in the prior month.
Index of Leading Economic Indicators in the U.S. Increases 0.5%
Photo: Bloomberg
Russia rebuffed Cyprus’s request for a bailout loan as the euro-area nation sought to salvage talks in Moscow by wooing investment in its energy reserves. Russia is unable to provide loans & will instead consider making investments in the Cypriot energy industry, Cyprus’s Finance Minister Michael Sarris said. He will have a later meeting with his Russian counterpart, Anton Siluanov (after Cyprus asked Russia for a loan of about €5B).. Cyprus offered energy & other assets in return (from offshore natural-gas fields) for a loan. The country is trying to overcome a deadlock after lawmakers rejected an unprecedented €5.8B euro levy on bank deposits imposed by euro-area finance ministers as a condition for a €10B rescue. Cyprus is offering Russia “opportunities,” including in banking & natural gas, in return for financial assistance, according to Sarris.
Cyprus Loan Request Spurned by Russia in Moscow, Sarris Says
Dow pulled back to more than 1 week lows. It had been vastly overbought while setting new records, this was expected. But fundamentals behind the decline are disturbing. The euro debt mess from a very small country drones on. Not to be forgotten, the US has more than its fair share of economic problems starting with the budget battle in DC. Meanwhile REITs are near near multi year highs & MLPs remain on fire because there is no recession in energy products. For the time being, bulls are taking a rest.
Dow Jones Industrials
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