SP 500 FINANCIALS INDEX
| Value | 196.66 |  |
| Change | 0.70 (0.4%) |
The Alerian MLP Index fell a fraction in the 355s from yesterday's fresh record while the REIT index was off a fraction to 223. Junk bond funds were mixed to lower. Treasuries shave been rising in the last 3 days on expectations the Federal Reserve (FED) will resume buying long term Treasuries. The yield on the 10 year bond dropped 5 basis points to 2.54% & has not been able to get far above the 2.4% lows it reached in the last 2 months.
Treasury yields:
| U.S. 3-month | 0.12% | |
| U.S. 2-year | 0.34% | |
| U.S. 10-year | 2.54% |
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
10-Year Treasury Yield Index --- 2 weeks
Oil extended gains after a government report showed a decline in supplies of gasoline & distillate fuels. Gold fluctuated ahead of the FED meeting.
| CLZ10.NYM | ...Crude Oil Dec 10 | ...84.42 | ... 0.52 | (0.6%) |
| GCX10.CMX | ...Gold Nov 10 | ....1,353.00 | ... 3.40 | (0.3%) |
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Orders to US factories rose broadly in Sep, propelled by business spending on commercial airplanes, boats & machines. The Commerce Dept reported that factory orders rose by 2.1%, the steepest increase since Jan after orders were flat in Aug. However excluding the volatile transportation sector, orders rose 0.4%, after gaining 1.3% in Aug. Business spending on costly, long-lasting goods such as airplanes & heavy machines produced most of the demand. But consumer spending also rose by 1.0%, after a flat performance in Aug. There are worries that recession-weary consumers will not spend enough to keep factories moving as business spending subsides but this report may ease those fears.
U.S. Factory Orders Increase 2.1% as Manufacturing Leads Economic Recovery
Factory orders - 1 year
US companies boosted payrolls by more than forecast in Oct according to a private report from ADP Employer Services. Employment increased 43K after a revised 2K drop in the prior month. The estimate called for a 2K. This report suggests the Jobs report on Fri will show companies added 80K workers last month & the unemployment rate held at 9.6%. Concern that growth is too slow to lower unemployment will probably prompt Federal Reserve policy makers to take additional steps today to spur the US economy. Over the previous 6 reports, ADP initial figures were closest to the Labor Department’s first estimate of private payrolls in May, when it overestimated the gain in jobs by 14K & was least accurate in Apr, when it underestimated the employment gain by 199K.
ADP Estimates U.S. Companies Added 43,000 Workers to Payrolls
Unemployment rate - 1 year
Enbridge (ENB), a Canadian energy company, reported Q3 net income fell to C$157M, or 42¢ a share, from C$304M, or 83¢ last year. ENB said adjusted earnings rose to 53¢ a share, up from 42¢. The pipeline outages of Lines 6B & 6A that resulted in leaks of crude oil in Jul & Sep hurt earnings from its investment in Enbridge Energy Partners (EEP) by $85B. The cause of the accidents remains under investigation. Analysts expected ENB to earn 47¢. Sales for the qtr rose 33% to C$3.5B from C$2.6B in 2009. ENB fell 17¢ & EEP rose 8¢ at their record highs.
Enbridge Profit Beats Analysts' Estimates; Pipeline Leaks Hurt U.S. Unit
Enbridge --- 2 years
Enbridge Partners - 2 years
Very little is expected ahead of the FOMC meeting. The FED should announce a quantitative easing (QE) plan to purchase $½B in Treasury bonds. Less would probably be taken as a negative & more could go either way. There is still a lot of debating about whether some or a lot is needed to jump start the ailing recovery. MLPs continue to reaching new highs while Apple (APPL) is only 3% below its record reached last month.
Dow Jones Industrials --- 2 weeks
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