Dow dropped 149, decliners over advancers almost 4-1 & NAZ fell 23. Bank stocks were off 3 to 210, but still have an a nice gain in Q1..
The MLP index fell 3 to the 397s & the REIT index was off 4 to 248. Junk bond funds were mixed but Treasuries found buyers. Oil took a nasty spill on news of a slowdown in global economic growth. Gold also sold off.
Photo: Yahoo
The number claiming new unemployment benefits dropped to a 4-year low last week. Initial claims fell 5K to 348K, the lowest level since Feb 2008, according to the Labor Dept. The prior week's figure was revised up to 353K from the previously reported 351K. The 4-week moving average declined 1K to 355K. The Federal Reserve has said it expects the jobless rate to "gradually" decline. The number still receiving benefits under regular state programs after an initial week of aid fell 9K to 3.35M in the latest week, the lowest since Aug 2008. Despite the improving labor market picture, long-term unemployment remains a major problem, 43% of the 12.8M out of work in Feb had been jobless for more than 6 months. The number on emergency unemployment benefits dropped 24K to 2.85M in the latest week. A total of 7.28M were claiming unemployment benefits under all programs, down 142K from the prior week.
Photo: Bloomberg
Euro-area services & manufacturing output contracted more than forecasted in Mar, adding to signs the economy has slipped into recession. A euro-area composite index dropped to 48.7 from 49.3 in Feb, London-based Markit Economics said. The forecast had been for a gain to 49.6. A reading below 50 indicates contraction. Europe's economy may struggle to regain strength after shrinking 0.3% in Q4 as goves toughen budget cuts, rising oil prices erode consumers’ purchasing power & global demand weakens. In the UK, retail sales fell more than forecast in Feb. Ireland’s economy slipped back into a recession in Q4 & Chinese manufacturing contracted this month. A gauge of euro-region manufacturing fell to 47.7 in Mar from 49 in Feb, Markit said, & a measure of services declined to 48.7 from 48.8. Companies cut employment levels for the 3rd month in a row, while a gauge of new business decreased for an 8th month, today’s report showed. Gloomy news out of Europe.
Euro-Area Services, Manufacturing Contracted in March: Economy
FedEx profit from Dec-Feb more than doubled on higher package volume & prices. In its fiscal Q3, EPS was $1.65, compared with 73¢ a year earlier. Excluding one-time items, EPS was $1.55 compared with 81¢ a year earlier & beat expectations. Revenue rose 9% to $10.6B. FDX is narrowing its forecast for the fiscal year ending in May. It now expects EPS of $6.43-$6.68 compared with $6.25-$6.75 previously given. FDX said the global economy isn't growing as strongly as expected & customers are reacting by choosing cheaper means of shipping packages. As a result it's predicting a slower pace of growth this year for the US & abroad than most economists. CFO Graf said the current economic environment & higher fuel prices are driving more customers to "trade down" or choose slower methods of shipping to save money, just like they did during the recession. The stock fell $3.85 (4%) on the mixed messages.
FedEx Forecast’s Low End Trails Estimates as Express Slows
The global economies are sputtering more than had been expected. Nothing serious at this stage, but not a welcome sign by the markets. The jobless data should have given the markets a big lift, but worldwide thoughts took center stage. Today's spill is taking the Dow close to the 13K level which had been an important ceiling for so long. Bulls want it to hold for obvious reasons.
The MLP index fell 3 to the 397s & the REIT index was off 4 to 248. Junk bond funds were mixed but Treasuries found buyers. Oil took a nasty spill on news of a slowdown in global economic growth. Gold also sold off.
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.076% | |
U.S. 2-year | 0.363% | |
U.S. 10-year | 2.267% |
| CLK12.NYM | ...Crude Oil May 12 | ...104.82 | ..... 2.45 | (2.3%) |
| GCH12.CMX | ...Gold Mar 12 | ........1,636.60 | ... 13.40 | (0.8) |
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The number claiming new unemployment benefits dropped to a 4-year low last week. Initial claims fell 5K to 348K, the lowest level since Feb 2008, according to the Labor Dept. The prior week's figure was revised up to 353K from the previously reported 351K. The 4-week moving average declined 1K to 355K. The Federal Reserve has said it expects the jobless rate to "gradually" decline. The number still receiving benefits under regular state programs after an initial week of aid fell 9K to 3.35M in the latest week, the lowest since Aug 2008. Despite the improving labor market picture, long-term unemployment remains a major problem, 43% of the 12.8M out of work in Feb had been jobless for more than 6 months. The number on emergency unemployment benefits dropped 24K to 2.85M in the latest week. A total of 7.28M were claiming unemployment benefits under all programs, down 142K from the prior week.
Photo: Bloomberg
Euro-area services & manufacturing output contracted more than forecasted in Mar, adding to signs the economy has slipped into recession. A euro-area composite index dropped to 48.7 from 49.3 in Feb, London-based Markit Economics said. The forecast had been for a gain to 49.6. A reading below 50 indicates contraction. Europe's economy may struggle to regain strength after shrinking 0.3% in Q4 as goves toughen budget cuts, rising oil prices erode consumers’ purchasing power & global demand weakens. In the UK, retail sales fell more than forecast in Feb. Ireland’s economy slipped back into a recession in Q4 & Chinese manufacturing contracted this month. A gauge of euro-region manufacturing fell to 47.7 in Mar from 49 in Feb, Markit said, & a measure of services declined to 48.7 from 48.8. Companies cut employment levels for the 3rd month in a row, while a gauge of new business decreased for an 8th month, today’s report showed. Gloomy news out of Europe.
Euro-Area Services, Manufacturing Contracted in March: Economy
Photo: Yahoo
FedEx profit from Dec-Feb more than doubled on higher package volume & prices. In its fiscal Q3, EPS was $1.65, compared with 73¢ a year earlier. Excluding one-time items, EPS was $1.55 compared with 81¢ a year earlier & beat expectations. Revenue rose 9% to $10.6B. FDX is narrowing its forecast for the fiscal year ending in May. It now expects EPS of $6.43-$6.68 compared with $6.25-$6.75 previously given. FDX said the global economy isn't growing as strongly as expected & customers are reacting by choosing cheaper means of shipping packages. As a result it's predicting a slower pace of growth this year for the US & abroad than most economists. CFO Graf said the current economic environment & higher fuel prices are driving more customers to "trade down" or choose slower methods of shipping to save money, just like they did during the recession. The stock fell $3.85 (4%) on the mixed messages.
FedEx Forecast’s Low End Trails Estimates as Express Slows
FedEx Corporation (FDX)
The global economies are sputtering more than had been expected. Nothing serious at this stage, but not a welcome sign by the markets. The jobless data should have given the markets a big lift, but worldwide thoughts took center stage. Today's spill is taking the Dow close to the 13K level which had been an important ceiling for so long. Bulls want it to hold for obvious reasons.
Dow Industrials
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