Dow fell 8, decliners ahead of advancers 5-4 & NAZ lost 8. The MLP index was up 1+ to 450 & the REIT index slid a fraction to the 293s. Junk bond funds climbed higher & Treasuries gained. Oil continued its decline & gold had a tiny rebound, but is still below 1400.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
The number filing new claims for unemployment benefits rose slightly last week as initial claims for state unemployment benefits increased 4K to 352K, according to the Labor Dept. The prior week's number was revised to show 2K more applications than previously reported. Despite the increase last week, which was in line with expectations, claims held near a level associated with average monthly job gains of more than 150K, helping to further ease concerns of a deterioration in labor market conditions. The 4-week moving average for new claims rose 3K to 361K. Given recent volatility because of the early Easter & spring breaks this year, claims are probably not useful in trying to gauge Apr payrolls. Recent data ranging from employment, retail sales & manufacturing suggest the economy is heading into a soft patch, blamed mostly on higher taxes & deep gov spending cuts. The number still receiving benefits under regular state programs after an initial week of aid fell 35K to 3.07M.
Jobless Claims Little Changed as U.S. Job Market Stabilizes
Photo: Bloomberg
The index of US leading indicators unexpectedly declined in Mar for the first time in 7 months, a sign the world’s largest economy will cool. The Conference Board’s gauge of the outlook for the next 3-6 months slipped 0.1% after climbing 0.5% in the prior 2 months. The forecast called for a 0.1% increase. The figures underscore an economy that hit a rough patch at the end of Q1 as manufacturing eased & higher payrolls taxes began to bite. Estimates ranged from a decline of 0.4% to an increase of 0.6%. 5 of the 10 indicators in the index contributed to the Mar decrease, including a decline in applications for home construction, fewer factory orders & a drop in consumer expectations. Building permits fell 3.9% to a 4-month low 902K annualized rate.
Leading Economic Indicators Index in U.S. Unexpectedly Declines
Photo: Bloomberg
UnitedHealth, a Dow stock, Q1 profit sank 14%, as medical costs dulled enrollment-fueled revenue gains for the nation's largest health insurer, which also expects federal budget cuts will pressure its performance the rest of the year. It still backs a forecast it made last Nov for 2013 EPS of $5.25-$5.50. But the automatic federal budget cuts, which will hit the Medicare program, will make the top end of that range harder to reach. UNH is the largest provider of Medicare Advantage plans, subsidized, privately run versions of the Medicare program. The insurer said last fall it expected growth this year, but it anticipated challenges from high unemployment & costs tied to the health care overhaul, which imposes fees & coverage restrictions on insurers. The company expects less revenue in 2013 because a very large client switched its insurance to a self-funded approach, where it pays the claims & the insurer just administers the policy. UNH now expects revenue of $122B, compared to its previous projection for $123-$124B. For the full year, analysts expect EPS of $5.51 on $123.8B in revenue. In Q1, EPS was $1.16. That figure doesn't count a portion of earnings that went to shareholders of Amil Participacoes, a Brazilian health benefits provider that UNH is buying for $4.9B. EPS was down from $1.31 per share last a year. Revenue rose 11% to $30.3B. Analysts expected EPS of $1.14 on $30.5B in revenue. The stock sank 2.32.
UnitedHealth Quarterly Profit Falls as Medicare Costs Rise
Stocks don't know where to go but early earnings reports are less than robust. Bank of America (BAC), in the Dow, is selling off again. DC will allow federal budget cuts to continue for months & that can become a drag on the economy. Apple (AAPL) with what used to be the largest market cap in the world, dropped 8 to 394 & its outlook is glum. This has to be considered another negative for the market.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.048% | |
U.S. 2-year |
0.224% | |
U.S. 10-year |
1.679% |
| CLK13.NYM | ...Crude Oil May 13 | ...87.31 |  ....0.63 | (0.7%) |
| GCK13.CMX | ...Gold May 13 | .....1,393.40 | ...11.20 (0.8%) |
Photo: Bloomberg
The number filing new claims for unemployment benefits rose slightly last week as initial claims for state unemployment benefits increased 4K to 352K, according to the Labor Dept. The prior week's number was revised to show 2K more applications than previously reported. Despite the increase last week, which was in line with expectations, claims held near a level associated with average monthly job gains of more than 150K, helping to further ease concerns of a deterioration in labor market conditions. The 4-week moving average for new claims rose 3K to 361K. Given recent volatility because of the early Easter & spring breaks this year, claims are probably not useful in trying to gauge Apr payrolls. Recent data ranging from employment, retail sales & manufacturing suggest the economy is heading into a soft patch, blamed mostly on higher taxes & deep gov spending cuts. The number still receiving benefits under regular state programs after an initial week of aid fell 35K to 3.07M.
Jobless Claims Little Changed as U.S. Job Market Stabilizes
Photo: Bloomberg
The index of US leading indicators unexpectedly declined in Mar for the first time in 7 months, a sign the world’s largest economy will cool. The Conference Board’s gauge of the outlook for the next 3-6 months slipped 0.1% after climbing 0.5% in the prior 2 months. The forecast called for a 0.1% increase. The figures underscore an economy that hit a rough patch at the end of Q1 as manufacturing eased & higher payrolls taxes began to bite. Estimates ranged from a decline of 0.4% to an increase of 0.6%. 5 of the 10 indicators in the index contributed to the Mar decrease, including a decline in applications for home construction, fewer factory orders & a drop in consumer expectations. Building permits fell 3.9% to a 4-month low 902K annualized rate.
Leading Economic Indicators Index in U.S. Unexpectedly Declines
Photo: Bloomberg
UnitedHealth, a Dow stock, Q1 profit sank 14%, as medical costs dulled enrollment-fueled revenue gains for the nation's largest health insurer, which also expects federal budget cuts will pressure its performance the rest of the year. It still backs a forecast it made last Nov for 2013 EPS of $5.25-$5.50. But the automatic federal budget cuts, which will hit the Medicare program, will make the top end of that range harder to reach. UNH is the largest provider of Medicare Advantage plans, subsidized, privately run versions of the Medicare program. The insurer said last fall it expected growth this year, but it anticipated challenges from high unemployment & costs tied to the health care overhaul, which imposes fees & coverage restrictions on insurers. The company expects less revenue in 2013 because a very large client switched its insurance to a self-funded approach, where it pays the claims & the insurer just administers the policy. UNH now expects revenue of $122B, compared to its previous projection for $123-$124B. For the full year, analysts expect EPS of $5.51 on $123.8B in revenue. In Q1, EPS was $1.16. That figure doesn't count a portion of earnings that went to shareholders of Amil Participacoes, a Brazilian health benefits provider that UNH is buying for $4.9B. EPS was down from $1.31 per share last a year. Revenue rose 11% to $30.3B. Analysts expected EPS of $1.14 on $30.5B in revenue. The stock sank 2.32.
UnitedHealth Quarterly Profit Falls as Medicare Costs Rise
UnitedHealth (UNH)
Stocks don't know where to go but early earnings reports are less than robust. Bank of America (BAC), in the Dow, is selling off again. DC will allow federal budget cuts to continue for months & that can become a drag on the economy. Apple (AAPL) with what used to be the largest market cap in the world, dropped 8 to 394 & its outlook is glum. This has to be considered another negative for the market.
Dow Jones Industrials
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