Dow dropped 111, decliners over advancers 3-1 & NAZ fell 36. The Financial Index was down 4+ to 441 (a big drop). The MLP index plunged 8+ to the 445s (a huge drop for the index) & the REIT index fell 1+ to the 287s. Junk bond funds lost ground & Treasuries gained, bringing the yield on the 10 year Treasury to its lowest level this year. Oil tumbled, losing its upward momentum & gold fell the mid 1500s as Cyprus fears ebbed.
AMJ (Alerian MLP Index tracking fund)
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Party leaders in Greece's coalition gov are holding an emergency meeting to try to work out a compromise over an emergency tax, hours before rescue lenders are due to resume a debt inspection in Athens. Conservative Prime Minister Antonis Samaras was in talks with 2 coalition partners who disagree with plans to extend a highly unpopular property tax levied on household electricity bills that was due to expire this year. Greece's struggling economy has been relying on intl bailout loans to stay afloat. Debt inspectors from the EU, ECB & IMF are due in Athens tomorrow to review the progress of budget-cutting measures required for future bailout installments.
Greek coalition divided on emergency tax AP
Photo: Bloomberg
China's services industries expanded at a faster pace last month, supporting a further acceleration of growth in the world’s 2nd-biggest economy. The non-manufacturing Purchasing Managers' Index rose to 55.6 from 54.5 in Feb, according to the Beijing-based National Bureau of Statistics & China Federation of Logistics & Purchasing. A separate services gauge from HSBC Holdings & Markit Economics rose to 54.3, matching the highest since May, from 52.1. Readings above 50 signal expansion. A pickup in industries from banking to transportation would bolster expansion after factory output had the weakest Jan - Feb growth since 2009. The gov last month set a target of 7.5% expansion for 2013, the same as 2012’s goal. The Mar reading of the official services PMI compares with 58.0 in Mar 2012 & 59.2 in Mar 2011.
China’s Service Industries Expanded at Faster Pace in March
Photo: Bloomberg
Boeing, a Dow stock, investors are betting that the 787 Dreamliner’s grounding is nearing an end, which would allow the planemaker to resume deliveries & reap cash from its marquee jet. While the FAA hasn’t said when the 787 can return to service, BA said it will submit a proposed battery fix after ground tests & a certification flight “in coming days.” Having the jets sidelined stalled its drive to add revenue by doubling output this year to 10 planes a month from a backlog of more than 800 Dreamliners. Deliveries are important because buyers typically make large payments as they take possession of their planes. The Dreamliner’s starting list price is $207M, from which customers typically get a discount. Handovers were halted after the FAA issued its Jan 16 grounding directive, joined by regulators worldwide to cover all 49 of the 787s in service. A month earlier, BA announced a 10% div increase, the most since 2007, & said it was resuming a $3.6B stock-buyback plan. The stock was up 27¢ today & has had a nice run during its turbulent period recently.
Boeing Rally Shows Investor Confidence in Dreamliner Battery Fix
Stocks sold off after disappointing economic data was reported & Dow is back to where it was one week ago. The euro bank mess is sort of healing. But Cyprus is not out of the woods yet & Italy is still trying to patch together a gov. The US economy is the big unknown. The federal gov began budget cutbacks last month & nobody knows how much damage that will do. Consumer spending has held up this year, although that may not last. The Dow closed 25 above its lows, some consolation for the bulls, & is down 28 in Apr.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.058% | |
U.S. 2-year |
0.232% | |
U.S. 10-year |
1.810% |
| CLK13.NYM | ...Crude Oil May 13 | ...94.50 |  ....2.69 | (2.8%) |
Party leaders in Greece's coalition gov are holding an emergency meeting to try to work out a compromise over an emergency tax, hours before rescue lenders are due to resume a debt inspection in Athens. Conservative Prime Minister Antonis Samaras was in talks with 2 coalition partners who disagree with plans to extend a highly unpopular property tax levied on household electricity bills that was due to expire this year. Greece's struggling economy has been relying on intl bailout loans to stay afloat. Debt inspectors from the EU, ECB & IMF are due in Athens tomorrow to review the progress of budget-cutting measures required for future bailout installments.
Greek coalition divided on emergency tax AP
Photo: Bloomberg
China's services industries expanded at a faster pace last month, supporting a further acceleration of growth in the world’s 2nd-biggest economy. The non-manufacturing Purchasing Managers' Index rose to 55.6 from 54.5 in Feb, according to the Beijing-based National Bureau of Statistics & China Federation of Logistics & Purchasing. A separate services gauge from HSBC Holdings & Markit Economics rose to 54.3, matching the highest since May, from 52.1. Readings above 50 signal expansion. A pickup in industries from banking to transportation would bolster expansion after factory output had the weakest Jan - Feb growth since 2009. The gov last month set a target of 7.5% expansion for 2013, the same as 2012’s goal. The Mar reading of the official services PMI compares with 58.0 in Mar 2012 & 59.2 in Mar 2011.
China’s Service Industries Expanded at Faster Pace in March
Photo: Bloomberg
Boeing, a Dow stock, investors are betting that the 787 Dreamliner’s grounding is nearing an end, which would allow the planemaker to resume deliveries & reap cash from its marquee jet. While the FAA hasn’t said when the 787 can return to service, BA said it will submit a proposed battery fix after ground tests & a certification flight “in coming days.” Having the jets sidelined stalled its drive to add revenue by doubling output this year to 10 planes a month from a backlog of more than 800 Dreamliners. Deliveries are important because buyers typically make large payments as they take possession of their planes. The Dreamliner’s starting list price is $207M, from which customers typically get a discount. Handovers were halted after the FAA issued its Jan 16 grounding directive, joined by regulators worldwide to cover all 49 of the 787s in service. A month earlier, BA announced a 10% div increase, the most since 2007, & said it was resuming a $3.6B stock-buyback plan. The stock was up 27¢ today & has had a nice run during its turbulent period recently.
Boeing Rally Shows Investor Confidence in Dreamliner Battery Fix
Boeing (BA)
Stocks sold off after disappointing economic data was reported & Dow is back to where it was one week ago. The euro bank mess is sort of healing. But Cyprus is not out of the woods yet & Italy is still trying to patch together a gov. The US economy is the big unknown. The federal gov began budget cutbacks last month & nobody knows how much damage that will do. Consumer spending has held up this year, although that may not last. The Dow closed 25 above its lows, some consolation for the bulls, & is down 28 in Apr.
Dow Jones Industrials
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