Dow went up 34, advancers ahead of decliners 3-2 & NAZ fell 5. The Financial Index advanced 1¾ to 243. The MLP index hardly budged but the REIT index rose 2+ to the 289s, a new multi year high. Junk bond funds were a little lower & Treasuries rose. Oil fell for a 2nd day as more Americans than projected filed applications for unemployment claims last week. Gold also pulled back.
AMJ (Alerian MLP Index tracking fund)
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.063% | |
U.S. 2-year |
0.228% | |
U.S. 10-year |
1.787% |
| CLK13.NYM | ...Crude Oil May 13 | ...93.02 |  ...1.43 | (1.5%) |
| GCJ13.CMX | ....Gold Apr 13 | .......1,549.10 | ...3.70 | (0.2%) |
Photo: Bloomberg
The number of Americans filing new claims for
unemployment benefits rose to its highest level in 4 months last
week, suggesting the labor market recovery lost some steam in Mar. Initial claims for unemployment benefits
increased 28K to 385K, the highest level
since Nov, according to the Labor Dep. This was the 3rd straight week of gains in claims.
Coming on the heels of data on yesterday showing private employers added
the fewest jobs in 5 months in Mar, the report implied some
weakening in job growth after hiring accelerated in Feb. The forecast called for a decline to 350K. The 4-week moving average for new claims rose a substantial 11K to 354K. While the claims report has no bearing on tomorrow's payrolls data for Mar,
it hinted at some weakness in hiring. Employers are expected to have added 200K jobs to
their payrolls last month, slowing from a brisk pace of 236K in Feb. The jobless rate is seen unchanged at 7.7%.
Photo: Bloomberg
ECB head Mario Draghi is sticking to his forecast
that the recession-bound euro area economy will recover later this year,
but cautions the hoped-for rebound could be delayed. Draghi predicted a "gradual recovery" for the 17 EU
countries that use the € in H2, but added that his
outlook was "subject to downside risk." The ECB projects the 17-country eurozone economy will shrink 0.5% this
year. Weak economic indicators have suggested that its economy shrank
in Q1 for the 6th straight qtr. He made his comment after the ECB left its benchmark interest
rate unchanged at a record low 0.75%. Bank officials have said
that an additional cut might not offer much additional stimulus.
Photo: Bloomberg
Walgreen, a Dividend Aristocrat, has stretched the reach of its drugstore clinics beyond
treating ankle sprains & sinus infections to handling chronic diseases
such as diabetes, asthma & high blood pressure. The company said that most of its
370 in-store Take Care Clinics now will diagnose, treat & monitor
patients with some chronic conditions that are typically handled by
doctors. Drugstore clinics, which are run by nurse practitioners or physician
assistants, have grown popular in recent years as a convenient & less
expensive way to treat relatively minor illnesses when a patient doesn't
have a doctor or if their physician isn't available. But the clinics
have been broadening their scope of care: The decision follows a
move by competitor CVS Caremark (CVS) to start
monitoring chronic conditions at most of its 640 MinuteClinics. Drugstores say they don't aim to replace doctors, but rather to
provide more people with access to health care & to work with
physicians as part of a team treating patients. But the move to provide
more complex care draws concern from doctors who say that can disrupt
their relationships with patients & lead to fragmented care. After a good run recently, the stock slipped pennies today.
Walgreen (WAG)
Stocks are digesting the rise in unemployment claims & fuzzier outlook from the euro area fairly well. The jobs report tomorrow is bigger in influence & has the potential for bring a negative surprise based on initial economic signals. The MLP index took a tumble yesterday but is holding steady today. REITs continue strong with their index up 23 YTD. Strength in the Dow today comes from Alcoa (AA), Pfizer (PFE) & Disney (DIS).
Dow Jones Industrials
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