Dow climber 40, advancers over decliners 5-4 & NAZ went up 4. The MLP index lost 2+ to the 456s & the REIT index fell 1+ to the 278s. Junk bond funds were mixed & Treasuries eased back. Oil fell
for the first time in 3 days, widening its discount to Brent
oil, as the dollar strengthened & US stockpiles grew for a 9th week. Gold saw more selling.
AMJ (Alerian MLP Index tracking fund)
The index of US leading indicators rose more than forecast in Feb, a sign the economy will strengthen after a weather-induced slowdown in Q1. The Conference Board’s gauge of the outlook for the next 3-6 months climbed 0.5%, the biggest gain since Nov, after a revised 0.1% gain the prior month. The forecast called for a 0.2% gain. Job market growth, climbing home values & record-high stock prices are adding to household wealth, which will probably help boost Americans’ confidence. More consumer spending, which makes up about 70% of the economy, could make businesses willing to invest & hire.
Index of Leading Economic Indicators in the U.S. Rose 0.5%
The number of Americans filing applications for unemployment benefits held last week near the lowest level in almost 4 months, a sign the labor market continues to strengthen. Jobless claims increased 5K to 320K in the latest week, according to the Labor Dept. The forecast called for an increase to 322K. The 4-week average fell to the lowest level since late Nov, declining to 327K from 330K the week before. A slowdown in dismissals may pave the way for employers to take on more workers once demand accelerates. Federal Reserve policymakers said yesterday there is “sufficient underlying strength in the broader economy to support ongoing improvement in labor-market conditions,” even as economic activity slowed during the winter months. The number continuing to receive jobless benefits increased 41K to 2.89M in the latest week after reaching a 3-month low in the prior period. The unemployment rate among people eligible for benefits held at 2.2%. 30 states & territories reported an increase in claims, while 22 reported a decline.
Jobless Claims in U.S. Held Last Week Near Four-Month Low
Photo: Bloomberg
Purchases of previously owned homes in the US declined in Feb to the lowest level since Jul 2012, a sign the industry may be slow to recover. Contract closings on existing properties fell 0.4% to a 4.6M annual rate, matching the projection, according to the National Association of Realtors. Prices rose 9.1% from a year earlier. The slowdown in sales since the middle of last year reflects a pickup in borrowing costs, declining affordability &, more recently, bad weather. Faster job growth that generates bigger income gains are needed to spur demand & allow housing to contribute more to the economy. First-time buyers accounted for 28% of all purchases, up from 26% in Jan (the lowest in data going back to Oct 2008). Compared with a year earlier, purchases decreased 6.9% on an unadjusted basis. The number of previously owned homes on the market rose 6.4% to 2M. At the current sales pace, it would take 5.2 months to sell those houses, the highest since last Apr, compared with 4.9 months at the end of the prior month. Less than a 5 months’ supply is considered a tight market. Sales of existing single-family homes decreased 0.2% to an annual rate of 4.04M. Purchases of multifamily properties fell 1.8% to a 560K pace.
Sales of Existing Homes in U.S. Fall to Lowest Since 2012
Traders are having 2nd thoughts after selling yesterday. Janet's comments about higher interest rates next year were deemed as not so bad. Of course, higher rates are coming & next year isn't that far away. But there is a sense of calm in the markets even though tensions with Russia continue at high levels. Dow is still down 300 YTD as Q1 winds down.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.05% | |
U.S. 2-year |
0.44% | |
U.S. 10-year |
2.79% |
| CLJ14.NYM | .....Crude Oil Apr 14 | ...100.00 |  ....0.37 | (0.4%) |
| GCH14.CMX | ...Gold Mar 14 | .......1,326.00 | ...15.40 | (1.2%) |
The index of US leading indicators rose more than forecast in Feb, a sign the economy will strengthen after a weather-induced slowdown in Q1. The Conference Board’s gauge of the outlook for the next 3-6 months climbed 0.5%, the biggest gain since Nov, after a revised 0.1% gain the prior month. The forecast called for a 0.2% gain. Job market growth, climbing home values & record-high stock prices are adding to household wealth, which will probably help boost Americans’ confidence. More consumer spending, which makes up about 70% of the economy, could make businesses willing to invest & hire.
Index of Leading Economic Indicators in the U.S. Rose 0.5%
The number of Americans filing applications for unemployment benefits held last week near the lowest level in almost 4 months, a sign the labor market continues to strengthen. Jobless claims increased 5K to 320K in the latest week, according to the Labor Dept. The forecast called for an increase to 322K. The 4-week average fell to the lowest level since late Nov, declining to 327K from 330K the week before. A slowdown in dismissals may pave the way for employers to take on more workers once demand accelerates. Federal Reserve policymakers said yesterday there is “sufficient underlying strength in the broader economy to support ongoing improvement in labor-market conditions,” even as economic activity slowed during the winter months. The number continuing to receive jobless benefits increased 41K to 2.89M in the latest week after reaching a 3-month low in the prior period. The unemployment rate among people eligible for benefits held at 2.2%. 30 states & territories reported an increase in claims, while 22 reported a decline.
Jobless Claims in U.S. Held Last Week Near Four-Month Low
Purchases of previously owned homes in the US declined in Feb to the lowest level since Jul 2012, a sign the industry may be slow to recover. Contract closings on existing properties fell 0.4% to a 4.6M annual rate, matching the projection, according to the National Association of Realtors. Prices rose 9.1% from a year earlier. The slowdown in sales since the middle of last year reflects a pickup in borrowing costs, declining affordability &, more recently, bad weather. Faster job growth that generates bigger income gains are needed to spur demand & allow housing to contribute more to the economy. First-time buyers accounted for 28% of all purchases, up from 26% in Jan (the lowest in data going back to Oct 2008). Compared with a year earlier, purchases decreased 6.9% on an unadjusted basis. The number of previously owned homes on the market rose 6.4% to 2M. At the current sales pace, it would take 5.2 months to sell those houses, the highest since last Apr, compared with 4.9 months at the end of the prior month. Less than a 5 months’ supply is considered a tight market. Sales of existing single-family homes decreased 0.2% to an annual rate of 4.04M. Purchases of multifamily properties fell 1.8% to a 560K pace.
Sales of Existing Homes in U.S. Fall to Lowest Since 2012
Traders are having 2nd thoughts after selling yesterday. Janet's comments about higher interest rates next year were deemed as not so bad. Of course, higher rates are coming & next year isn't that far away. But there is a sense of calm in the markets even though tensions with Russia continue at high levels. Dow is still down 300 YTD as Q1 winds down.
Dow Jones Industrials
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