Dow inched up 2, advancers ahead of decliners almost 3-2 & NAZ also went up 2. The MLP index added another 1 from yesterday's big gain, to the 453s, & the REIT index slipped a fraction to 295. Junk bond funds were a little higher & Treasuries were flattish. Oil fell but gold advanced.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
Inflation in China eased more than forecast from a 10-month high as food-price gains ebbed, reducing pressure to tighten credit as the world’s 2nd-largest economy recovers from a slowdown. The CPI rose 2.1% in Mar from a year earlier, the National Bureau of Statistics said. That compares with the 2.5% estimate & a 3.2% gain in Feb when spending for the Lunar New Year holiday pushed up prices. Slowing price gains are a boost for the new premier as he seeks to sustain a rebound from the economy’s weakest annual expansion in 13 years. Authorities have drained cash from the financial system this year. Food costs rose 2.7% in Mar from a year earlier, less than half of the 6% pace in Feb. The CPI fell 0.9% from Feb, the biggest drop in 7 years. Producer prices fell 1.9% from a year earlier, the 13th straight decline, compared with a 1.6% drop in Feb & matching the forecast. China is targeting inflation of about 3.5% this year, then-Premier Wen Jiabao said in his final annual report last month, lowering the goal from last year’s 4%. Consumer prices rose 2.6% in 2012, less than half 2011’s pace. For Q1, inflation was 2.4%.
China Tightening Pressure Eases With March Inflation
Moody’s said Spain is less likely to need a sovereign bailout now than it was in Oct as funding costs have fallen since then. “When we did our last rating action we said we do attach quite a high likelihood for Spain’s having to ask for an ESM precautionary credit line -- that is embedded in the current rating,” Kathrin Muehlbronner from Moody’s said. “At the moment we would see the likelihood as lower than back in October.” Funding costs have declined since the ECB last year unveiled a debt-purchase program on secondary markets for sovereigns applying for aid from the EU rescue-fund, known as ESM. Prime Minister Rajoy has said that while the program is useful, his gov will seek to avoid using it. The yield on the 10-year benchmark bonds is 4.74%, about 300 basis points lower than its euro-era high lats Jul. The spread with similar German maturities narrowed to 3.47 percentage points.
Spain Bailout Less Likely on Lower Funding Costs: Moody’s
Photo: Bloomberg
Alcoa, the first Dow stock with earnings, reported Q1 earnings that exceeded estimates as demand from airplane and car manufacturers increased. EPS was 13¢, above 9¢ last year. EPS excluding an income-tax benefit & other one-time items was 11¢, beating the 8¢ forecast. The company has been shifting its focus from the production of the lightweight metal to making valued-added aluminum parts for industry. Profit in the engineered products & solutions unit, which supplies the aerospace & automotive industries, rose 10%. But revenue fell 2.9% to $5.83B, missing the $5.88B estimate because of lower metal prices & the impact of smelter curtailments in Spain & Italy. The stock slipped pennies.
Alcoa Profit Beats Analysts’ Estimates on Aircraft Demand
Stocks are wandering with little news to excite traders. The AA report didn't give clues about what to expect. Big banks will start reporting earnings this week & next week will see a lot of reports from some of the biggest industrials & service companies. These reports may bring disappointment for earnings & outlooks. The MLP index is climbing again, just a whisper from the record set at the start of Apr.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.079% | |
U.S. 2-year |
0.228% | |
U.S. 10-year |
1.725% |
| CLK13.NYM | ...Crude Oil May 13 | ...93.29 |  ...0.07 | (0.1%) |
| GCJ13.CMX | ....Gold Apr 13 | .......1,577.30 | ....5.30 | (0.3%) |
Photo: Bloomberg
Inflation in China eased more than forecast from a 10-month high as food-price gains ebbed, reducing pressure to tighten credit as the world’s 2nd-largest economy recovers from a slowdown. The CPI rose 2.1% in Mar from a year earlier, the National Bureau of Statistics said. That compares with the 2.5% estimate & a 3.2% gain in Feb when spending for the Lunar New Year holiday pushed up prices. Slowing price gains are a boost for the new premier as he seeks to sustain a rebound from the economy’s weakest annual expansion in 13 years. Authorities have drained cash from the financial system this year. Food costs rose 2.7% in Mar from a year earlier, less than half of the 6% pace in Feb. The CPI fell 0.9% from Feb, the biggest drop in 7 years. Producer prices fell 1.9% from a year earlier, the 13th straight decline, compared with a 1.6% drop in Feb & matching the forecast. China is targeting inflation of about 3.5% this year, then-Premier Wen Jiabao said in his final annual report last month, lowering the goal from last year’s 4%. Consumer prices rose 2.6% in 2012, less than half 2011’s pace. For Q1, inflation was 2.4%.
China Tightening Pressure Eases With March Inflation
Moody’s said Spain is less likely to need a sovereign bailout now than it was in Oct as funding costs have fallen since then. “When we did our last rating action we said we do attach quite a high likelihood for Spain’s having to ask for an ESM precautionary credit line -- that is embedded in the current rating,” Kathrin Muehlbronner from Moody’s said. “At the moment we would see the likelihood as lower than back in October.” Funding costs have declined since the ECB last year unveiled a debt-purchase program on secondary markets for sovereigns applying for aid from the EU rescue-fund, known as ESM. Prime Minister Rajoy has said that while the program is useful, his gov will seek to avoid using it. The yield on the 10-year benchmark bonds is 4.74%, about 300 basis points lower than its euro-era high lats Jul. The spread with similar German maturities narrowed to 3.47 percentage points.
Spain Bailout Less Likely on Lower Funding Costs: Moody’s
Photo: Bloomberg
Alcoa, the first Dow stock with earnings, reported Q1 earnings that exceeded estimates as demand from airplane and car manufacturers increased. EPS was 13¢, above 9¢ last year. EPS excluding an income-tax benefit & other one-time items was 11¢, beating the 8¢ forecast. The company has been shifting its focus from the production of the lightweight metal to making valued-added aluminum parts for industry. Profit in the engineered products & solutions unit, which supplies the aerospace & automotive industries, rose 10%. But revenue fell 2.9% to $5.83B, missing the $5.88B estimate because of lower metal prices & the impact of smelter curtailments in Spain & Italy. The stock slipped pennies.
Alcoa Profit Beats Analysts’ Estimates on Aircraft Demand
Alcoa (AA)
Stocks are wandering with little news to excite traders. The AA report didn't give clues about what to expect. Big banks will start reporting earnings this week & next week will see a lot of reports from some of the biggest industrials & service companies. These reports may bring disappointment for earnings & outlooks. The MLP index is climbing again, just a whisper from the record set at the start of Apr.
Dow Jones Industrials
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