Dow gained 19 from buying in the PM, advancers ahead of decliners 3-2 & NAZ was up a strong 27. The MLP index jumped 2+ to 457, for a new record, & the REIT index slid a fraction in the 298s. Junk bond funds were mixed to lower & Treasuries rose, bringing the lowest yields of the year. Oil rebounded & gold rose, supported by strong physical buying after its fall
last week to the weakest price in 2 years, but sentiment was shaky as
bullion holdings in exchange-traded funds were trimmed to the lowest in 3 years.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Bloomberg
Spain’s budget deficit was the largest in the EU last year, underlining the challenge faced by Prime Minister Rajoy as he prepares a new plan to foster an economic recovery. Eurostat, the EU’s statistics agency, reported that Spain’s 2012 deficit widened to 10.6% of GDP, swollen by the cost of bailing out its banking system. That’s up from 9.4% in 2011 & is worse than Greece's 2012 budget gap of 10%. A limit of 3% of GDP is imposed on all EU members. Rajoy pledged last week to unveil measures on Fri to make the region’s 4rth-largest economy more flexible & competitive. Rajoy is bidding for more time from reorder public finances as he aims to end a 6-year economic crisis, aided by the ECB pledge to do whatever it takes to preserve the €. IMF Director Christine Lagarde said last week that the Spanish gov needs more time to reduce its deficit. The country’s shortfall grew while the euro area’s combined deficit narrowed to 3.7% of GDP from 4.2% a year earlier. Germany had a budget surplus last year, while Italy was within the EU limit at 3% & France & Ireland reduced their gaps to 4.8% & 7.6% respectively. The Greek deficit widened from 9.5% in 2011. Spain’s overall debt load surged to 84.2% of GDP from 69.3%. While that’s still below the euro region’s average of 90.6%, the European Commission forecasts it will breach the average this year.
Spain Has EU’s Largest Deficit, Undermining Rajoy Pickup
Photo: Bloomberg
Google dropped as much as 3% then reversed most of the tumble within a second in a series of transactions that spurred concern the stock was hit by a computerized-trading error. The stock slid as low as $775 in 2 trades totaling 210 shares after the opening & then recovered most of the loss within the same second. The stock had opened the session with a gain, climbing over $803. The decline wasn’t large enough to trigger a trading circuit breaker that would pause GOOG shares. That would require a drop of 10% in 5 minutes. Google shares jumped over 4% on Fri after the company reported earnings that topped estimates as advertisers increased spending on mobile & video promotions. Today, the Google stock slid from $796 to $775 in about ¾ of a second, then rebounded to $793 a second later. This pop was viewed as "a fat finger.” The stock finished the day up a mild 24¢ to 800.11.
Google Shares Tumble 3.1% in Possible ‘Fat Finger’ Trade
Photo: Bloomberg
The biggest bond dealers on Wall Street see little chance the Federal Reserve (FED) will slow the pace of debt purchases designed to boost economic growth before Q4, as policy makers face calls to curb buying. Of the 21 primary dealers that trade with the central bank, 14 said that the FED won’t start to reduce its $85B monthly bond buying until Q4.
Dealers Say No End to QE in ’13; 2016 Rate Rise: Hatzius
Buyers came back from long holiday weekends to bring higher prices by the close even though there was no special news driving the rise. Caterpillar (CAT), a Dow stock, rose $2.19 despite weaker than expected earnings. Microsoft (MSFT) & duPont (DD) also contributed to the rise for the Dow, but IBM (IBM), UnitedHealth (UNH) & General Electric (GE) saw more selling after disappointing earnings last week. The markets are still on defense.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.048% | |
U.S. 2-year |
0.228% | |
U.S. 10-year |
1.699% |
| CLK13.NYM | ...Crude Oil May 13 | ...88.87 |  ...0.86 | (1.0%) |
Photo: Bloomberg
Spain’s budget deficit was the largest in the EU last year, underlining the challenge faced by Prime Minister Rajoy as he prepares a new plan to foster an economic recovery. Eurostat, the EU’s statistics agency, reported that Spain’s 2012 deficit widened to 10.6% of GDP, swollen by the cost of bailing out its banking system. That’s up from 9.4% in 2011 & is worse than Greece's 2012 budget gap of 10%. A limit of 3% of GDP is imposed on all EU members. Rajoy pledged last week to unveil measures on Fri to make the region’s 4rth-largest economy more flexible & competitive. Rajoy is bidding for more time from reorder public finances as he aims to end a 6-year economic crisis, aided by the ECB pledge to do whatever it takes to preserve the €. IMF Director Christine Lagarde said last week that the Spanish gov needs more time to reduce its deficit. The country’s shortfall grew while the euro area’s combined deficit narrowed to 3.7% of GDP from 4.2% a year earlier. Germany had a budget surplus last year, while Italy was within the EU limit at 3% & France & Ireland reduced their gaps to 4.8% & 7.6% respectively. The Greek deficit widened from 9.5% in 2011. Spain’s overall debt load surged to 84.2% of GDP from 69.3%. While that’s still below the euro region’s average of 90.6%, the European Commission forecasts it will breach the average this year.
Spain Has EU’s Largest Deficit, Undermining Rajoy Pickup
Photo: Bloomberg
Google dropped as much as 3% then reversed most of the tumble within a second in a series of transactions that spurred concern the stock was hit by a computerized-trading error. The stock slid as low as $775 in 2 trades totaling 210 shares after the opening & then recovered most of the loss within the same second. The stock had opened the session with a gain, climbing over $803. The decline wasn’t large enough to trigger a trading circuit breaker that would pause GOOG shares. That would require a drop of 10% in 5 minutes. Google shares jumped over 4% on Fri after the company reported earnings that topped estimates as advertisers increased spending on mobile & video promotions. Today, the Google stock slid from $796 to $775 in about ¾ of a second, then rebounded to $793 a second later. This pop was viewed as "a fat finger.” The stock finished the day up a mild 24¢ to 800.11.
Google Shares Tumble 3.1% in Possible ‘Fat Finger’ Trade
Google (GOOG)
Photo: Bloomberg
The biggest bond dealers on Wall Street see little chance the Federal Reserve (FED) will slow the pace of debt purchases designed to boost economic growth before Q4, as policy makers face calls to curb buying. Of the 21 primary dealers that trade with the central bank, 14 said that the FED won’t start to reduce its $85B monthly bond buying until Q4.
Dealers Say No End to QE in ’13; 2016 Rate Rise: Hatzius
Buyers came back from long holiday weekends to bring higher prices by the close even though there was no special news driving the rise. Caterpillar (CAT), a Dow stock, rose $2.19 despite weaker than expected earnings. Microsoft (MSFT) & duPont (DD) also contributed to the rise for the Dow, but IBM (IBM), UnitedHealth (UNH) & General Electric (GE) saw more selling after disappointing earnings last week. The markets are still on defense.
Dow Jones Industrials
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