Dow was off 34, decliners over advancers 2-1 & NAZ lost 5. The MLP index slumped 6 to the 253s & the REIT index fell 1 to the 286s. Junk bond funds slid lower & Treasuries pulled back. Oil was flattish & gold managed another gain.
AMJ (Alerian MLP Index tracking fund)
Photo: Yahoo
Contracts to purchase previously owned US homes fell in Jun, retreating from a more than 6-year high touched the prior month, suggesting rising mortgage rates were starting to dampen home sales. The National Association of Realtors Pending Homes Sales Index, based on contracts signed last month, decreased 0.4% to 110.9. May's index was revised down to 111.3 from a previously reported 112.3. The forecast called for expected signed contracts to fall 1.0%. But compared to last year contracts were up 10.9%. "Mortgage interest rates began to rise in May, taking some of the momentum out of contract activity in June," said NAR chief economist Lawrence Yun. "The persistent lack of inventory also is contributing to lower contract signings." Rates on 30-year fixed rate mortgages have climbed about a full percentage point since early May on expectations the Federal Reserve (FED) may begin scaling back its bond-buying stimulus program as early as Sep. Contracts were up in the West, but down in the Midwest & South. The index for the Northeast was unchanged.
Pending Sales of Previously Owned U.S. Homes Fell 0.4% in June
Photo: Bloomberg
German Finance Minister Schaeuble said Europe must keep up pressure on Greece to stand by its austerity pledges as he rejected the notion that the upcoming election has put debt-crisis management on hold. Greece’s progress will continue to be monitored after euro govs last week approved the latest bailout transfer to keep the Greek gov funded thru the Sep 22 election in Germany. German lawmakers today approved their country’s share of rescue aid to Greece after the gov there agreed to fulfill all terms tied to the help. “The pressure remains, so this has nothing to do with the election schedule,” Schaeuble said . “They’re far from being over the mountain,” he added. As euro leaders scramble to plug the hole in Greece’s budget, Germany’s political factions are maneuvering into position ahead of a vote 8 weeks away as Chancellor Merkel seeks a 3rd term in office. Her challenger, Social Democrat Peer Steiinbrueck, yesterday declined to rule out a possible “grand” coalition with Merkel’s bloc. With most polls showing Merkel’s Christian Democratic-led bloc about 15 percentage points ahead of the SPD, they project a narrow chance she could continue her current partnership with the pro-business Free Democratic Party. Falling short of that, the most likely combination would be reprising the grand coalition that Merkel led in her first term from 2005-2009. Such a gov would change the crisis-resolution calculus, putting Merkel in partnership with a party that has been more open to sovereign bailouts in Europe. The German election can influence future Greek bailout needs.
Schaeuble Urges Pressure on Greece to Remain Before Vote
Photo: Bloomberg
Apple's Bob Mansfield, whose $85M compensation made him one of the highest-paid US executives in 2012, is stepping down as technologies chief to work on special projects. “Bob will no longer be on Apple’s executive team, but he will continue to work on special projects,” an Apple spokeswoman said. He presided over some of the toughest hardware-engineering jobs in the past decade, including a transition of its Mac personal computers to Intel (INTC), a Dow stock, chips & development of the iPad tablet. He retired in Jun 2012 & returned about 2 months later, when AAPL granted him a pay package that made him the 2nd-best-paid executive at any S&P 500 company. The change comes as investors focus on whether AAPL can come up with breakthrough new products to jump-start growth. The company has been developing a watch-like wearable device that would include features of the iPhone & other capabilities Mansfield ran key areas of technology development, including wireless communications & a group charged with planning long-term chip strategy. Since overseeing the change of the Mac’s electronic brain to work with Intel chips, the group has experimented with finding a single family of chips to run all AAPL products. The stock rose 6.
Apple Says Technology Head Bob Mansfield Shifting Work to Special Projects
Stocks are not doing a lot today. The Q2 GDP will be released on Wed & Fri brings the Jul jobs report. Expectations for Q2 GDP are dreary, probably around a 1% annual rate. The bulls like to see drab jobs reports because they hope they cause the FED to delay any change in monthly bond purchases. Of course, it also prolongs the very slow recovery since 2009. The FOMC has its big meeting in the next 2 days. There is plenty of uncertainty out there to keep the bulls nervous.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.02% | |
U.S. 2-year |
0.32% | |
U.S. 10-year |
2.58% |
| CLU13.NYM | ...Crude Oil Sep 13 | ...105.17 |  ...0.47 | (0.5%) |
| GCN13.CMX | ...Gold Jul 13 | .........1,324.70 | ...3.00 | (0.2%) |
Photo: Yahoo
Contracts to purchase previously owned US homes fell in Jun, retreating from a more than 6-year high touched the prior month, suggesting rising mortgage rates were starting to dampen home sales. The National Association of Realtors Pending Homes Sales Index, based on contracts signed last month, decreased 0.4% to 110.9. May's index was revised down to 111.3 from a previously reported 112.3. The forecast called for expected signed contracts to fall 1.0%. But compared to last year contracts were up 10.9%. "Mortgage interest rates began to rise in May, taking some of the momentum out of contract activity in June," said NAR chief economist Lawrence Yun. "The persistent lack of inventory also is contributing to lower contract signings." Rates on 30-year fixed rate mortgages have climbed about a full percentage point since early May on expectations the Federal Reserve (FED) may begin scaling back its bond-buying stimulus program as early as Sep. Contracts were up in the West, but down in the Midwest & South. The index for the Northeast was unchanged.
Pending Sales of Previously Owned U.S. Homes Fell 0.4% in June
Photo: Bloomberg
German Finance Minister Schaeuble said Europe must keep up pressure on Greece to stand by its austerity pledges as he rejected the notion that the upcoming election has put debt-crisis management on hold. Greece’s progress will continue to be monitored after euro govs last week approved the latest bailout transfer to keep the Greek gov funded thru the Sep 22 election in Germany. German lawmakers today approved their country’s share of rescue aid to Greece after the gov there agreed to fulfill all terms tied to the help. “The pressure remains, so this has nothing to do with the election schedule,” Schaeuble said . “They’re far from being over the mountain,” he added. As euro leaders scramble to plug the hole in Greece’s budget, Germany’s political factions are maneuvering into position ahead of a vote 8 weeks away as Chancellor Merkel seeks a 3rd term in office. Her challenger, Social Democrat Peer Steiinbrueck, yesterday declined to rule out a possible “grand” coalition with Merkel’s bloc. With most polls showing Merkel’s Christian Democratic-led bloc about 15 percentage points ahead of the SPD, they project a narrow chance she could continue her current partnership with the pro-business Free Democratic Party. Falling short of that, the most likely combination would be reprising the grand coalition that Merkel led in her first term from 2005-2009. Such a gov would change the crisis-resolution calculus, putting Merkel in partnership with a party that has been more open to sovereign bailouts in Europe. The German election can influence future Greek bailout needs.
Schaeuble Urges Pressure on Greece to Remain Before Vote
Photo: Bloomberg
Apple's Bob Mansfield, whose $85M compensation made him one of the highest-paid US executives in 2012, is stepping down as technologies chief to work on special projects. “Bob will no longer be on Apple’s executive team, but he will continue to work on special projects,” an Apple spokeswoman said. He presided over some of the toughest hardware-engineering jobs in the past decade, including a transition of its Mac personal computers to Intel (INTC), a Dow stock, chips & development of the iPad tablet. He retired in Jun 2012 & returned about 2 months later, when AAPL granted him a pay package that made him the 2nd-best-paid executive at any S&P 500 company. The change comes as investors focus on whether AAPL can come up with breakthrough new products to jump-start growth. The company has been developing a watch-like wearable device that would include features of the iPhone & other capabilities Mansfield ran key areas of technology development, including wireless communications & a group charged with planning long-term chip strategy. Since overseeing the change of the Mac’s electronic brain to work with Intel chips, the group has experimented with finding a single family of chips to run all AAPL products. The stock rose 6.
Apple Says Technology Head Bob Mansfield Shifting Work to Special Projects
Apple (AAPL)
Stocks are not doing a lot today. The Q2 GDP will be released on Wed & Fri brings the Jul jobs report. Expectations for Q2 GDP are dreary, probably around a 1% annual rate. The bulls like to see drab jobs reports because they hope they cause the FED to delay any change in monthly bond purchases. Of course, it also prolongs the very slow recovery since 2009. The FOMC has its big meeting in the next 2 days. There is plenty of uncertainty out there to keep the bulls nervous.
Dow Jones Industrials
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