Dow rose 104, advancers ahead of decliners 3-2 & NAZ added 26. The Financial Index was up 1+ to 246. The MLP index went up another 1+ to the 456s & the REIT index gained 1+ to 289 (a post recession high). Junk bond funds did little & Treasuries pulled back. Oil fell & gold retreated, to below 1600.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
US factories rose sharply in Feb from Jan on a surge in demand for volatile aircraft. The gain offset a drop in key orders that signal business investment. The Commerce Dept said that factory orders increased 3%, following a revised 1% decline in Jan & the biggest gain in 5 months. The increase was due mostly to a jump in orders for commercial aircraft which rose 95%. Orders for motor vehicles & parts increased 1.4%. Orders for all durable goods jumped 5.6%. Orders for nondurable goods, such as processed food & clothing, rose 0.8%. Despite the gains, the report showed that a key measure of business investment plans fell. That could mean that some companies were worried in Feb about steep federal spending cuts that started Mar. 1. Core capital goods, which include machinery & equipment orders, fell 3.2%. Demand for construction machinery, turbines & generators all fell sharply while orders for computers & electronic products rose slightly. Still, the decline followed a 6.7% surge in Jan, the largest in nearly 3 years. Consumers stepped up spending in Feb after their income jumped. The gain occurred even after Social Security taxes increased in Jan.
Orders to U.S. Factories Increase on Demand for Autos, Planes
Photo: Yahoo
Cypriot Finance Minister Michael Sarris quit after concluding talks with foreign lenders on a bailout that forced the island to slap unprecedented losses on bank depositors in return for aid. The news came after Cyprus announced a partial relaxation of currency controls, raising the ceiling for financial transactions that do not require central bank approval, but keeping most other restrictions in place. Sarris, who was dispatched to Moscow last month but returned empty-handed as Cyprus sought Russian aid after rejecting a European bank levy proposal, said his main goal of agreeing a deal with lenders had been accomplished. He said it was also appropriate to resign since he was among several people under scrutiny by a team of investigators looking into the collapse of the country's banking system. His resignation was accepted by the gov. "I believe that in order to facilitate the work of (investigators) the right thing would be to place my resignation at the disposal of the president of the republic, which I did," Sarris said. Cyprus introduced curbs on money movements when banks reopened on last week after a 2-week shutdown while the gov negotiated a €10B bailout from the IMF & the EU.
Cyprus Concludes Bailout Talks, Aid to Flow in May Reuters
Mar was the best sales month for Ford (F) & Chrysler in nearly 6 years, as buyers armed with tax refund checks were lured by flashy new vehicles & low interest rates. Sales at Ford were up 6% & Chrysler's rose 5% over last Mar. It was the best month for Ford since May 2007 & the best for Chrysler since Dec 2007, the same month the recession began. General Motors (GM) sales rose 6 % last month, while Toyota (TM) sales inched up 1% compared with a very strong Mar last year. Analysts estimate that total Mar sales reached nearly 1.5M, a number not seen since May 2007. Total US sales are expected to be up 3-5%% over Mar of 2012. Chrysler sold almost 172K cars & trucks. Ford's sales were up 16% to 67K as contractors and other small businesses buy new trucks at a rapid pace.
Ford, Chrysler U.S. Sales up in March AP
Stocks are having a good day as factory order data and car sales are bringing out buyers. More good news on auto sales was no great surprise. Factory orders were not as strong as the headlines suggest when volatile aircraft orders are discounted. Also, Mar orders reflecting budget cutbacks may not be as rosy. The Cyprus situation is settling down but unemployment in the euro zone is up to 12%, very worrisome. With a jobs report coming on Fri that should give fairly decent numbers, the market is likely to have a good week. Then earnings season kicks in & that is iffy.
Dow Jones Induistrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.089% | |
U.S. 2-year |
0.244% | |
U.S. 10-year |
1.858% |
| CLK13.NYM | ...Crude Oil May 13 | ...96.10 |  .....0.97 | (1.0%) |
| GCJ13.CMX | ....Gold Apr 13 | .......1,582.80 | ...17.20 | (1.1%) |
Photo: Bloomberg
US factories rose sharply in Feb from Jan on a surge in demand for volatile aircraft. The gain offset a drop in key orders that signal business investment. The Commerce Dept said that factory orders increased 3%, following a revised 1% decline in Jan & the biggest gain in 5 months. The increase was due mostly to a jump in orders for commercial aircraft which rose 95%. Orders for motor vehicles & parts increased 1.4%. Orders for all durable goods jumped 5.6%. Orders for nondurable goods, such as processed food & clothing, rose 0.8%. Despite the gains, the report showed that a key measure of business investment plans fell. That could mean that some companies were worried in Feb about steep federal spending cuts that started Mar. 1. Core capital goods, which include machinery & equipment orders, fell 3.2%. Demand for construction machinery, turbines & generators all fell sharply while orders for computers & electronic products rose slightly. Still, the decline followed a 6.7% surge in Jan, the largest in nearly 3 years. Consumers stepped up spending in Feb after their income jumped. The gain occurred even after Social Security taxes increased in Jan.
Orders to U.S. Factories Increase on Demand for Autos, Planes
Photo: Yahoo
Cypriot Finance Minister Michael Sarris quit after concluding talks with foreign lenders on a bailout that forced the island to slap unprecedented losses on bank depositors in return for aid. The news came after Cyprus announced a partial relaxation of currency controls, raising the ceiling for financial transactions that do not require central bank approval, but keeping most other restrictions in place. Sarris, who was dispatched to Moscow last month but returned empty-handed as Cyprus sought Russian aid after rejecting a European bank levy proposal, said his main goal of agreeing a deal with lenders had been accomplished. He said it was also appropriate to resign since he was among several people under scrutiny by a team of investigators looking into the collapse of the country's banking system. His resignation was accepted by the gov. "I believe that in order to facilitate the work of (investigators) the right thing would be to place my resignation at the disposal of the president of the republic, which I did," Sarris said. Cyprus introduced curbs on money movements when banks reopened on last week after a 2-week shutdown while the gov negotiated a €10B bailout from the IMF & the EU.
Cyprus Concludes Bailout Talks, Aid to Flow in May Reuters
Mar was the best sales month for Ford (F) & Chrysler in nearly 6 years, as buyers armed with tax refund checks were lured by flashy new vehicles & low interest rates. Sales at Ford were up 6% & Chrysler's rose 5% over last Mar. It was the best month for Ford since May 2007 & the best for Chrysler since Dec 2007, the same month the recession began. General Motors (GM) sales rose 6 % last month, while Toyota (TM) sales inched up 1% compared with a very strong Mar last year. Analysts estimate that total Mar sales reached nearly 1.5M, a number not seen since May 2007. Total US sales are expected to be up 3-5%% over Mar of 2012. Chrysler sold almost 172K cars & trucks. Ford's sales were up 16% to 67K as contractors and other small businesses buy new trucks at a rapid pace.
Ford, Chrysler U.S. Sales up in March AP
Stocks are having a good day as factory order data and car sales are bringing out buyers. More good news on auto sales was no great surprise. Factory orders were not as strong as the headlines suggest when volatile aircraft orders are discounted. Also, Mar orders reflecting budget cutbacks may not be as rosy. The Cyprus situation is settling down but unemployment in the euro zone is up to 12%, very worrisome. With a jobs report coming on Fri that should give fairly decent numbers, the market is likely to have a good week. Then earnings season kicks in & that is iffy.
Dow Jones Induistrials
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