Dow crawled up 1, advancers over decliners 3-2 & NAZ gained 11. The MLP index rose 1+ to 444 & the REIT index was up fractionally in the 323s. Junk bond funds inched higher & Treasuries rallied. Oil is back near 60 & gold was off a tad.
AMJ (Alerian MLP Index tracking fund)
The average number of Americans filing for unemployment benefits over the past 4 weeks dropped to a 15-year low, a sign the labor market continues to strengthen. The 4-week average for jobless claims decreased to 266K from 271K according to the Labor Dep. The figure corresponds to the week the gov surveys employers to calculate the monthly payroll data. On a weekly basis, applications rose by 10K to 274K. Such a limited pace of dismissals indicates companies are anticipating a pickup in demand for their goods & services in the coming months. More job security that sparks bigger wage gains would help propel consumer confidence & make households feel more comfortable spending. The 4-week average of claims, which is less volatile than the weekly figure, was the lowest since Apr 2000. Initial jobless claims reflect weekly layoffs & typically decrease before job growth can accelerate. The 4-week average during last month’s payroll survey week was 285K. The number continuing to receive jobless benefits decreased 12K to 2.21M, the lowest level since Nov 2000 & the unemployment rate among people eligible for benefits declined to 1.6% from 1.7% the prior week.
Purchases of previously owned homes unexpectedly fell in Apr, a sign the industry’s recovery remains uneven. Contract closings dropped 3.3% to a 5.04M annualized
rate after a 5.2M pace that was the strongest in almost 2
years, according to the National Association of Realtors. The forecast called for a rise to 5.23M. Prices jumped as the number of
houses for sales declined from the same time last year. Rising prices & a limited supply of properties, combined with
too-small growth in pay & lingering concerns about taking on too much
debt, are holding the market back. Signs that younger Americans are
forming families & venturing out on their own remain a bright spot
that could propel a rebound in the housing industry down the road. Compared with a year earlier, purchases increased 5.5% before adjusting for seasonal variations. Existing home sales, tabulated when a purchase contract closes,
account for more than 90% of the residential market. New-home
purchases, which make up about 8% & are tabulated when
contracts are signed, are considered a timelier barometer.
Germany’s economy stuttered again this month, with a gauge of output falling more than economists forecast to the lowest this year. Markit Economics said its composite index of services & manufacturing dropped to 52.8 from 54.1 in Apr. While that’s above the 50 mark that divides expansion from contraction, it’s the 2nd straight decline & was less than the reading of 53.8 forecast. German economic growth cooled to 0.3% in Q1, held back by a drag from trade, & Markit’s report showed that manufacturing export orders recorded only a “marginal” increase this month. At the same time, a rebound in oil prices & a weak euro pushed up input prices by the most in more than 2½ years. “It looks as if this rate of expansion of the German economy will remain sluggish in the months ahead,” Markit said. “Companies reported weaker expansions in both output and new orders, with some survey participants commenting on weak demand, economic uncertainties and rising cost pressures.” Markit’s manufacturing index for Germany fell to a 3-month low of 51.4 this month from 52.1 in Apr & the services measure slipped to 52.9 from 54. In a separate report, Markit said France’s economic recovery showed signs of strengthening this month. Its composite gauge of manufacturing and services rose to 51 from 50.6 in Apr (in line with the forecast). The IMF said this week that France’s recovery is “solid” for now, though pres Hollande needs to push thru further reforms in order to secure prosperity & cut unemployment.
Dow has been flattish, essentially at record highs for 6 days. It's up about 450 YTD, not bad considering the economic news behind it has not been exciting. The US economy had a tough Q1 & forecasts for 2015 are being revised to lower to roughly 2+%. That's not the kind of news which should excite stock buyers. The euro economy is has more negatives than positives & China is not having a great year. Then there is the MidEast where much of the world's oil comes from & that is going from bad to worse. But the bulls are not worried, yet.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL.NYM | ...Crude Oil Jul 15 | ...60.04 |  ...1.06 | (1.8%) |
| GC.CMX | ...Gold Jun 15 | ....1,206.30 | ....2.40 | (0.2%) |
The average number of Americans filing for unemployment benefits over the past 4 weeks dropped to a 15-year low, a sign the labor market continues to strengthen. The 4-week average for jobless claims decreased to 266K from 271K according to the Labor Dep. The figure corresponds to the week the gov surveys employers to calculate the monthly payroll data. On a weekly basis, applications rose by 10K to 274K. Such a limited pace of dismissals indicates companies are anticipating a pickup in demand for their goods & services in the coming months. More job security that sparks bigger wage gains would help propel consumer confidence & make households feel more comfortable spending. The 4-week average of claims, which is less volatile than the weekly figure, was the lowest since Apr 2000. Initial jobless claims reflect weekly layoffs & typically decrease before job growth can accelerate. The 4-week average during last month’s payroll survey week was 285K. The number continuing to receive jobless benefits decreased 12K to 2.21M, the lowest level since Nov 2000 & the unemployment rate among people eligible for benefits declined to 1.6% from 1.7% the prior week.
Sales of Previously Owned U.S. Homes Unexpectedly Fell in April
Germany’s economy stuttered again this month, with a gauge of output falling more than economists forecast to the lowest this year. Markit Economics said its composite index of services & manufacturing dropped to 52.8 from 54.1 in Apr. While that’s above the 50 mark that divides expansion from contraction, it’s the 2nd straight decline & was less than the reading of 53.8 forecast. German economic growth cooled to 0.3% in Q1, held back by a drag from trade, & Markit’s report showed that manufacturing export orders recorded only a “marginal” increase this month. At the same time, a rebound in oil prices & a weak euro pushed up input prices by the most in more than 2½ years. “It looks as if this rate of expansion of the German economy will remain sluggish in the months ahead,” Markit said. “Companies reported weaker expansions in both output and new orders, with some survey participants commenting on weak demand, economic uncertainties and rising cost pressures.” Markit’s manufacturing index for Germany fell to a 3-month low of 51.4 this month from 52.1 in Apr & the services measure slipped to 52.9 from 54. In a separate report, Markit said France’s economic recovery showed signs of strengthening this month. Its composite gauge of manufacturing and services rose to 51 from 50.6 in Apr (in line with the forecast). The IMF said this week that France’s recovery is “solid” for now, though pres Hollande needs to push thru further reforms in order to secure prosperity & cut unemployment.
Germany Loses Further Momentum as Manufacturing, Services Weaken
Dow has been flattish, essentially at record highs for 6 days. It's up about 450 YTD, not bad considering the economic news behind it has not been exciting. The US economy had a tough Q1 & forecasts for 2015 are being revised to lower to roughly 2+%. That's not the kind of news which should excite stock buyers. The euro economy is has more negatives than positives & China is not having a great year. Then there is the MidEast where much of the world's oil comes from & that is going from bad to worse. But the bulls are not worried, yet.
Dow Jones Industrials
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