After starting higher, Dow slid into the red, advancers ahead of decliners 3-2 & NAZ lost 5. The MLP index went up 2+ to the 458s & the REIT Index rose 1+ to the 284s. Junk bond funds edged higher while Treasuries slid lower. Oil keeps pushing towards 100 & gold continued its 6 month climb, nearing 1400..
AMJ (Alerian MLP Index tracking fund)
US consumer confidence unexpectedly dropped in Mar to a 4 month low, indicating household spending may be slow to pick up from a weather-related setback earlier this year. The Thomson Reuters/University of Michigan preliminary index of sentiment fell to 79.9 from 81.6 in Feb. The estimate called for the measure to increase to 82. Consumers surveyed were more pessimistic about the outlook for the economy, indicating bigger payroll gains that lead to faster wage growth are needed to propel spending. At the same time, fewer job cuts, higher home values & stocks close to a record will help keep sentiment from faltering. The Michigan sentiment survey’s index of expectations 6 months from now decreased to 69.4, the lowest since Nov, from 72.7 last month & the gauge of current conditions, which measures Americans’ view of their personal finances, rose to 96.1 in Mar from 95.4 a month earlier.
Consumer Sentiment in U.S. Unexpectedly Fell in March on Outlook
Photo: Bloomberg
US producer prices unexpectedly dropped in Feb, held back by the biggest decrease in the cost of services in almost a year. The 0.1% decrease in the producer-price index (PPI) followed a 0.2% rise the prior month, according to the Labor Dept. Over the past 12 months, wholesale prices rose 0.9%, the smallest year-to-year gain since May. Clothing retailers, airlines & residential real-estate brokers were among the service providers that saw their pricing power diminish last month. Weak inflation gives Federal Reserve meeting next week room to maintain low borrowing costs. The median estimate called for a 0.2% increase. Wholesale prices excluding food & energy dropped 0.2% compared with a projected 0.1% advance. They climbed 0.2% in the prior month. The year-to-year advance in total wholesale prices in Feb was 0.9%, down from a 1.2% gain in the 12 months to Jan. Excluding food & energy, the index increased 1.1% in the 12 months ended Feb, following a 1.3% year-to-year gain in Jan The cost of services dropped 0.3% in Feb, the most since May, reflecting record decreases for clothing & real-estate broker commissions. Airline & train fares also decreased. Prices for goods climbed 0.4% last month & were up 0.6% since Feb 2013. Energy costs climbed 0.5% last month after a 0.3% increase in Jan. Producer prices related to consumer spending declined 0.2% after increasing 0.3% a month earlier. Inflation continues mild.
Stocks are not doing much with little exciting news to drive the market. Weaker consumer confidence is always disturbing in the markets. When Obama raises the cost of paying some employees, costs will rise which can result in more worker layoffs. The Ukraine siuation lumbers along with nothing really accomplished although violence has been limited. Worries about intl uncertainties keep demand high for gold & Treasuries. The market is not having a good month & Dow is lower YTD after 20% of the new year has been recorded.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.04% | |
U.S. 2-year |
0.34% | |
U.S. 10-year |
2.65% |
| CLJ14.NYM | ....Crude Oil Apr 14 | ...98.78 |  .....0.58 | (0.6%) |
| GCH14.CMX | ...Gold Mar 14 | .....1,383.60 | ...11.40 | (0.8%) |
US consumer confidence unexpectedly dropped in Mar to a 4 month low, indicating household spending may be slow to pick up from a weather-related setback earlier this year. The Thomson Reuters/University of Michigan preliminary index of sentiment fell to 79.9 from 81.6 in Feb. The estimate called for the measure to increase to 82. Consumers surveyed were more pessimistic about the outlook for the economy, indicating bigger payroll gains that lead to faster wage growth are needed to propel spending. At the same time, fewer job cuts, higher home values & stocks close to a record will help keep sentiment from faltering. The Michigan sentiment survey’s index of expectations 6 months from now decreased to 69.4, the lowest since Nov, from 72.7 last month & the gauge of current conditions, which measures Americans’ view of their personal finances, rose to 96.1 in Mar from 95.4 a month earlier.
Consumer Sentiment in U.S. Unexpectedly Fell in March on Outlook
Photo: Bloomberg
US producer prices unexpectedly dropped in Feb, held back by the biggest decrease in the cost of services in almost a year. The 0.1% decrease in the producer-price index (PPI) followed a 0.2% rise the prior month, according to the Labor Dept. Over the past 12 months, wholesale prices rose 0.9%, the smallest year-to-year gain since May. Clothing retailers, airlines & residential real-estate brokers were among the service providers that saw their pricing power diminish last month. Weak inflation gives Federal Reserve meeting next week room to maintain low borrowing costs. The median estimate called for a 0.2% increase. Wholesale prices excluding food & energy dropped 0.2% compared with a projected 0.1% advance. They climbed 0.2% in the prior month. The year-to-year advance in total wholesale prices in Feb was 0.9%, down from a 1.2% gain in the 12 months to Jan. Excluding food & energy, the index increased 1.1% in the 12 months ended Feb, following a 1.3% year-to-year gain in Jan The cost of services dropped 0.3% in Feb, the most since May, reflecting record decreases for clothing & real-estate broker commissions. Airline & train fares also decreased. Prices for goods climbed 0.4% last month & were up 0.6% since Feb 2013. Energy costs climbed 0.5% last month after a 0.3% increase in Jan. Producer prices related to consumer spending declined 0.2% after increasing 0.3% a month earlier. Inflation continues mild.
Bypassing Congress, the pres intends to order changes in
overtime rules so employers would be required to pay millions more
workers for the extra time while on the job. The rules, which would not likely
take effect until 2015, are aimed at workers currently designated as
supervisory employees but who are exempt from overtime because they get
paid a salary of more than $455 a week. Obama plans to order the Labor
Dept to recommend regulations that would increase that salary
threshold & change the definition of what constitutes a supervisor. Attention to overtime dovetails with Obama's emphasis on correcting wage
disparities, a theme that he has said will be central to the remainder
of his presidential term. The directive, to be announced Thurs, leaves the details of a
proposed rule to the Labor Dept, which is not expected to come up
with a recommendation before the fall. Still, it drew swift protests
from Reps who complained he was sidestepping Congress & from
the business community, who said such rules would increase burdens on
employers. "What we know right
now is the threshold has been eroded by inflation, and there 3.1 million
people who, if the threshold had kept up just with inflation, would
automatically be covered by overtime provisions," said Betsey Stevenson,
a member of Obama's Council of Economic Advisers. Economists allied with the White House have proposed doubling the
current limit to nearly $1K a week, or about $52K a year, which,
when adjusted to inflation would make it similar to what the threshold
was in 1976. This move will raise costs for businesses.
Obama wants overtime pay for more salaried workers
Stocks are not doing much with little exciting news to drive the market. Weaker consumer confidence is always disturbing in the markets. When Obama raises the cost of paying some employees, costs will rise which can result in more worker layoffs. The Ukraine siuation lumbers along with nothing really accomplished although violence has been limited. Worries about intl uncertainties keep demand high for gold & Treasuries. The market is not having a good month & Dow is lower YTD after 20% of the new year has been recorded.
Dow Jones Industrials
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