Dow shot up 216. advancers over decliners 4-1 & NAZ jumped up 67. The MLP index dropped 7+ to the 325s & the REIT index is showing up 4+ to the 426s (the same as yesterday). Junk bond funds were modestly higher & Treasuries sold off. Oil rose in the 45s & gold crawled higher.
AMJ (Alerian MLP Index tracking fund)
The ECB kept interest rates unchanged, turning the focus to pres Mario Draghi’s assessment of the economy for any clues on whether more stimulus is in the pipeline. The Governing Council left the main refinancing rate at a record-low 0.05%, as predicted. The deposit rate & the marginal lending rate stayed at minus 0.2% & 0.3%, respectively. The ECB is grappling with a complex scenario of mixed domestic economic signals, an uncertain global outlook, & divergent opinions on what’s needed to combat feeble inflation. In the run-up to the meeting Draghi & most colleagues said it’s too early to decide whether to expand their €1.1T ($1.2T) bond-buying program.
US home resales rose more than expected in Sep to the 2nd highest monthly sales pace since 2007, suggesting the housing market continues to show strength compared to the rest of the economy. The National Association of Realtors said existing home sales increased 4.7% to an annual rate of 5.55M units. The Aug sales pace was revised slightly lower to 5.30M units from the previously reported 5.31M units. Economists had forecast home resales rising to a 5.38M-unit pace last month. Sales were up 8.8% from a year ago. Sales increased in all four regions of the United States & inventory continued to tighten. Unsold inventory was down to a 4.8-month supply at the current sales pace, down from 5.1 months in Aug & 5.4 months a year ago. "As we enter more softer demand months, we may not really feel the squeeze of tight inventory, but come spring of next year ... we could be facing a very tight inventory situation," said Lawrence Yun, the NAR chief economist. Nationwide, the medium home price fell to $221K, still an increase of 6.1% from one year ago. The stable pace of home resales in Sep follows yesterday's strong housing starts data, which was buoyed by increased demand for rental apartments. Housing has steadily improved relative to the rest of the U.S. economy, which has been buffeted by soft global demand, a strong dollar, & weak capital spending in the energy sector.
Stocks are hoping the ECB would remain open to further easing & traders think it will. The idea is more stimulus will extend the stock market's winning streak. Earnings reports continue to come in mixed, but optimism is the predominant emotion today.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLZ15.NYM | ....Crude Oil Dec 15 | ...45.69 |  ...0.49 | (1.1%) |
| GCV15.CMX | ...Gold Oct 15 | ......1,164.70 | ...2.90 | (0.3%) |
Fewer Americans than forecast
filed applications for unemployment benefits last week, giving workers
more reason to feel secure in their jobs. Jobless claims rose 3K to 259K, according to the Labor Dept. The
forecast called for
265K. Claims have stayed within a historically low range in the past few
months as employers retain staff to meet demand driven by steady
consumer spending. At the same time, the pace of hiring has eased amid
slowing overseas markets & lingering weakness in manufacturing &
energy-related industries. The 4-week moving average decreased to 263K, the lowest since
1973 & the comparable reading for the Sep survey was
272K. The number continuing to receive
jobless benefits rose 6K to 2.17M & the 4-week average declined to the lowest since 2000. The unemployment rate for benefits held at 1.6%, where it’s been since mid-Sep. Since early Mar, claims have been below the 300K level consistent with an improving job market. Nevertheless, employment growth has taken a step
down as hiring has cooled. The economy added fewer workers than
projected in Sep & revisions cut the job count in prior months.
The unemployment rate held at a 7-year low of 5.1%, & wages
stagnated.
U.S. Jobless Claims Hover Near Lowest Level in Four Decades
The ECB kept interest rates unchanged, turning the focus to pres Mario Draghi’s assessment of the economy for any clues on whether more stimulus is in the pipeline. The Governing Council left the main refinancing rate at a record-low 0.05%, as predicted. The deposit rate & the marginal lending rate stayed at minus 0.2% & 0.3%, respectively. The ECB is grappling with a complex scenario of mixed domestic economic signals, an uncertain global outlook, & divergent opinions on what’s needed to combat feeble inflation. In the run-up to the meeting Draghi & most colleagues said it’s too early to decide whether to expand their €1.1T ($1.2T) bond-buying program.
ECB Keeps Rates Unchanged as Draghi Weighs Risks of QE Signaling
US home resales rose more than expected in Sep to the 2nd highest monthly sales pace since 2007, suggesting the housing market continues to show strength compared to the rest of the economy. The National Association of Realtors said existing home sales increased 4.7% to an annual rate of 5.55M units. The Aug sales pace was revised slightly lower to 5.30M units from the previously reported 5.31M units. Economists had forecast home resales rising to a 5.38M-unit pace last month. Sales were up 8.8% from a year ago. Sales increased in all four regions of the United States & inventory continued to tighten. Unsold inventory was down to a 4.8-month supply at the current sales pace, down from 5.1 months in Aug & 5.4 months a year ago. "As we enter more softer demand months, we may not really feel the squeeze of tight inventory, but come spring of next year ... we could be facing a very tight inventory situation," said Lawrence Yun, the NAR chief economist. Nationwide, the medium home price fell to $221K, still an increase of 6.1% from one year ago. The stable pace of home resales in Sep follows yesterday's strong housing starts data, which was buoyed by increased demand for rental apartments. Housing has steadily improved relative to the rest of the U.S. economy, which has been buffeted by soft global demand, a strong dollar, & weak capital spending in the energy sector.
Existing Home Sales Jump More than Views
Stocks are hoping the ECB would remain open to further easing & traders think it will. The idea is more stimulus will extend the stock market's winning streak. Earnings reports continue to come in mixed, but optimism is the predominant emotion today.
Dow Jones Industrials
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