Dow gained 54, advancers over decliners2-1 & NAZ was up 9. The Financial Index added 1+ to the 247s, another post Lehman collapse high. The MLP index was about even in the 434s & the REIT index rose 1+ to the 283s, the high end of its recent trading range. Junk bond funds slipped & Treasuries saw selling again, taking the yield on the 10 year Treasury to nearly an 11 month high. Oil was flat & gold slipped marginally.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
The number filing applications for unemployment benefits unexpectedly dropped last week to the lowest level in almost 2 months, adding to signs the labor market is strengthening. First-time jobless claims fell 10K to 332K according to data today from the Labor Dept. The forecast called for an increase to 350K. The 4-week average declined to a 5- year low. Managers are maintaining staffing levels as consumers sustain spending even after a two percentage-point increase in the payroll tax at the start of the year reduced paychecks. Nonetheless, there remains a risk that the recent pickup in employment will be cut short as federal budget cutbacks prompt companies & gov agencies to trim payrolls. The Labor Dept revised the number of applications for the prior week to 342K from an initially reported 340K. The number continuing to receive benefits fell 89K to 3.02M, the fewest since Jun 2008. The continuing claims figure doesn’t include Americans receiving extended unemployment benefits under federal programs. Those collecting emergency & extended payments increased 136K to 1.9M. The unemployment rate among Americans eligible for benefits held at 2.4%.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.084% | |
U.S. 2-year |
0.268% | |
U.S. 10-year |
2.053% |
| CLX13.NYM | ...Crude Oil Nov 13 | ...92.37 | .......0.00 | (0.00%) |
| GCH13.CMX | ...Gold Mar 13 | .....1,575.70 | ... 12.60 | (0.8%) |
Photo: Bloomberg
The number filing applications for unemployment benefits unexpectedly dropped last week to the lowest level in almost 2 months, adding to signs the labor market is strengthening. First-time jobless claims fell 10K to 332K according to data today from the Labor Dept. The forecast called for an increase to 350K. The 4-week average declined to a 5- year low. Managers are maintaining staffing levels as consumers sustain spending even after a two percentage-point increase in the payroll tax at the start of the year reduced paychecks. Nonetheless, there remains a risk that the recent pickup in employment will be cut short as federal budget cutbacks prompt companies & gov agencies to trim payrolls. The Labor Dept revised the number of applications for the prior week to 342K from an initially reported 340K. The number continuing to receive benefits fell 89K to 3.02M, the fewest since Jun 2008. The continuing claims figure doesn’t include Americans receiving extended unemployment benefits under federal programs. Those collecting emergency & extended payments increased 136K to 1.9M. The unemployment rate among Americans eligible for benefits held at 2.4%.
Jobless Claims Unexpectedly Fall as Labor Market Improves
Photo: BLoomberg
The pres's first meeting with the House Rep conference in 3 years produced no agreements in his quest for a deal on debt reduction amid skepticism from lawmakers about his intentions. The Reps, including Speaker Boehner, spoke of a frank & positive “tone” among the pres & members of their caucus. Still, they voiced disappointment over Obama’s opposition to their plan to balance the budget in a decade & his insistence on another tax increase as the price for overhauling entitlement programs such as Medicare. Before addressing the nation’s long-term debt, Obama is “going to hold hostage the fact that he wants to raise taxes on the American people again. It’s not going to get us very far,” Boehner said. Lawmakers still smarting from Obama’s campaign-style attacks on Reps when he sought to pressure Congress to avert automatic spending cuts that took effect Mar 1 questioned whether he was sincere in seeking common ground on spending, taxes & entitlement programs. The distance between Dems & Reps over budgetary plans for 2014 offers no sign of an accord before the US again reaches the debt limit reached in mid-May. This is called deeply divided DC.
Obama Warms Up to House Republicans With No Deal Progress
Photo: Bloomberg
The outlook for US business spending is improving as rising earnings, easier credit & pent-up demand prompt companies to expand. Orders for non-military capital goods excluding aircraft, considered a proxy for future business spending on equipment & software, climbed 7.2% in Jan from the prior month, the biggest gain since Sep 2004, revised data from the Commerce Dept showed today. They’re up 9.8% since Nov, the most for a 3-month period since 1993. Auto sales & the rebound in housing are driving gains in consumer spending, spurring companies to update operations, hire staff or add stores. The biggest surge in profits since the 1990s, combined with near record-low interest rates, mean firms may have the resources to soften the damage to the economy from federal budget cutbacks. The Federal Reserve said today in its Beige Book that the economy grew at a modest to moderate pace across most of the country amid rising consumer demand for homes & autos.
Business Spending Rises as U.S. Profits Grow: Economy
Stocks continue on their winning ways. Dow is hoping too extend its streak of rising days to 10. Its up about 450 in just half a month, an amazing 1400 YTD & 2500 from last year's low in early Jun. Looking at portfolio values feels good. But straight up is scary because those rises lead to significant selling. For the time being, the bulls remain in command.
Dow Jones Industreials
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