Wednesday, July 3, 2013

Markets slide lower on jobs data

Dow was off 12, decliners over advancers 3-1 & NAZ fell a fractioin.  The MLP index sank another 6 to 450 & the REIT index was off 3+ to the 277s.  Junk bond funds were weak & Treasuries had a modest rise.  Oil went over 100 & gold is back in the black from its depressed levels.

AMJ (Alerian MLP Index tracking fund)

stock chart

Treasury yields:

U.S. 3-month


U.S. 2-year


U.S. 10-year


CLQ13.NYM.......Crude Oil Aug 13...101.46 Up .....1.86   (1.9%)

GCN13.CMX    ...Gold Jul 13    .....1,250.00      ...6.40  (0.5%)   

Fewer Americans filed claims for unemployment benefits last week, as employers are holding off on layoffs.  Jobless claims decreased 5K to 343K from a revised 348K in the prior period that was higher than initially reported, according to the Labor Dept.  The forecast called for 345K claims.  Muted staff reductions are a sign that companies are keeping headcount steady even as economic growth struggles to gain strength.  The 4 week moving average decreased slightly to 345K.  The number continuing to receive jobless benefits fell to 2.93M from 2.99M in the prior period.  The number who have exhausted traditional benefits & are relying on emergency & federal extended aid dropped by about 39K to 1.67M.  The unemployment rate among people eligible for benefits held at 2.3 percent in the week ended June 22, today’s report showed.

Jobless Claims in U.S. Fall by 5,000 in Week to June 29

Trade Deficit in U.S. Unexpectedly Jumps as Imports Near Record

Photo:   Bloomberg

The US trade deficit jumped in May as imports climbed to the 2nd-highest level on record, pointing to an economy that is overcoming higher taxes & gov cutbacks.  The gap widened 12.1% to $45B, the biggest since Nov, from $40B in Apr, according to the Commerce Dept.  The forecast called for a $40B deficit.  The value of imports at $232B was 2nd only to a record $234B in Mar 2012.  Purchases of cellular phones, automobiles & fuel produced overseas add to signs demand from American consumers & businesses is picking up heading into H2.  The report also showed exports stagnated, reflecting slack global growth as markets from China to Europe struggle to gain momentum.  Imports climbed 1.9% from $228B in Apr.  Purchases of mobile phones and other household goods surged by $1.89B, demand for automobiles & parts reached a record while purchases of crude oil & petroleum products also rose.

Trade Deficit in U.S. Jumped in May as Imports Near Record

Markets are sliding in a holiday shortened day.   MLPs are taking it on the chin as Linn Energy (LINE) is under investigation for accounting practices by the SEC.  There should be minimal price movements today & on Fri, with many traders away on holiday.

Dow Jones Industrials

stock chart

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