Dow rose 40 (but off its highs), advancers just ahead of decliners & NAZ was up 1 as Apple (AAPL) pulled back 5 following yesterday's big rally. The Financial Index was up a fraction in the 207s (not doing much in Apr). The MLP index fell a fraction to the 392s & the REIT index was off 1 (from yesterday's yearly highs) to the 257s. Junk bond funds were mixed (but are having a good month) & Treasuries rose. Oil & gold hardly budged.
Photo: Bloomberg
The number of unemployment benefits remained stuck near a 3-month high last week, a sign that hiring has likely slowed since winter. The Labor Dept said that weekly applications dipped 1K to 388K (little changed from the previous week'), the highest since Jan 7. The 4-week average rose to 381K, also the highest in 3 months. Applications jumped sharply 3 weeks ago, a sign that employers had stepped up layoffs & added fewer jobs. The increase might have been inflated by temporary layoffs during the spring holidays, when many school employees are laid off. But applications haven't dropped back since then. The prediction is for a job gain of about 175K in Apr will be reported next week (below the average of 250K in Dec-Feb). However, some suggest that weather might have distorted the weak Mar jobs report. Warmer winter likely pulled some hiring that normally would have occurred last month into Jan & Feb. Ben Bernanke agreed that weather has likely disrupted recent data. The warm winter "made perhaps January and February artificially strong and March perhaps artificially a little bit weak," he said. "I wouldn't draw too much conclusion from the March report." I think jobs data will be weaker going forward.
The number of Americans who signed contracts to buy homes rose in Mar, another sign the battered housing market is slowly improving. The National Association of Realtors said its index of sales agreements increased 4.1% to a reading of 101.4, the highest since Apr 2010, when buyers could qualify for a federal home-buying tax credit. A reading of 100 is considered healthy. Contract signings typically indicate where the housing market is headed. But there's a 1-2 month lag between a signed contract & a completed deal. More signings are among recent signs of a slight pickup in the housing market. New home sales fell in Mar but have risen over the past year & builders are also more confident. Housing is still limping along, trying to find its footing for a recovery.
Pending Sales of U.S. Existing Homes Increased 4.1% in March
Photo: Yahoo
UPS Q1 profit rose 6%, but the results came in below expectations as Asian exports & other overseas shipments slowed. UPS, the world's largest package company, EPS was $1, up from 91¢ last year. Revenue rose 4.4% to $13.1B. Expectations were for EPS of $1.02 on revenue of $13.3. Much of the profit came from domestic shipping, where revenue was up 6.1% on higher volume & prices. But that was offset by a shift toward lighter & slower shipping methods. Online sales drove some of its speedy shipping options, including next day air. Ground volume rose 4% on demand for lightweight, less expensive shipments. Intl revenue was up just 2.3% to $2.97B, but revenue per package fell. Asian exports have slowed as China's economy cools, & some European countries slide into recession. The intl business, which has seen double-digit quarterly sales gains, has been slowing since last summer. Part of the reason that shipments from Asia to the US are down is that some businesses are locating factories in Mexico or other countries closer to home, to keep a tighter handle on inventory. UPS tends to be a good indicator of broader economic health because it moves millions of packages for businesses & consumers every day. The stock fell $2.59.
UPS First-Quarter Profit, Revenue Miss Estimates as Overseas Growth Slows
Markets are absorbing the gains from earlier this week as earnings reports are getting mixed grades today. The jobless report was a reminder that some of the enthusiasm a few months ago over the recovery may have premature. Next Fri, the big jobs report comes out which could be holding back buyers. Dow has been meandering for a couple of months. looking for direction. Earnings have not been a help. Gold can be a contrary indicator but has done little this year.
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.081% | |
U.S. 2-year | 0.262% | |
U.S. 10-year | 1.949% |
| CLM12.NYM | ...Crude Oil Jun 12 | ...104.39 | ... 0.27 | (0.3%) |
| GCJ12.CMX | .....Gold Apr 12 | .......1,643.60 | ... 0.60 | (0.0%) |
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The number of unemployment benefits remained stuck near a 3-month high last week, a sign that hiring has likely slowed since winter. The Labor Dept said that weekly applications dipped 1K to 388K (little changed from the previous week'), the highest since Jan 7. The 4-week average rose to 381K, also the highest in 3 months. Applications jumped sharply 3 weeks ago, a sign that employers had stepped up layoffs & added fewer jobs. The increase might have been inflated by temporary layoffs during the spring holidays, when many school employees are laid off. But applications haven't dropped back since then. The prediction is for a job gain of about 175K in Apr will be reported next week (below the average of 250K in Dec-Feb). However, some suggest that weather might have distorted the weak Mar jobs report. Warmer winter likely pulled some hiring that normally would have occurred last month into Jan & Feb. Ben Bernanke agreed that weather has likely disrupted recent data. The warm winter "made perhaps January and February artificially strong and March perhaps artificially a little bit weak," he said. "I wouldn't draw too much conclusion from the March report." I think jobs data will be weaker going forward.
The number of Americans who signed contracts to buy homes rose in Mar, another sign the battered housing market is slowly improving. The National Association of Realtors said its index of sales agreements increased 4.1% to a reading of 101.4, the highest since Apr 2010, when buyers could qualify for a federal home-buying tax credit. A reading of 100 is considered healthy. Contract signings typically indicate where the housing market is headed. But there's a 1-2 month lag between a signed contract & a completed deal. More signings are among recent signs of a slight pickup in the housing market. New home sales fell in Mar but have risen over the past year & builders are also more confident. Housing is still limping along, trying to find its footing for a recovery.
Pending Sales of U.S. Existing Homes Increased 4.1% in March
UPS Q1 profit rose 6%, but the results came in below expectations as Asian exports & other overseas shipments slowed. UPS, the world's largest package company, EPS was $1, up from 91¢ last year. Revenue rose 4.4% to $13.1B. Expectations were for EPS of $1.02 on revenue of $13.3. Much of the profit came from domestic shipping, where revenue was up 6.1% on higher volume & prices. But that was offset by a shift toward lighter & slower shipping methods. Online sales drove some of its speedy shipping options, including next day air. Ground volume rose 4% on demand for lightweight, less expensive shipments. Intl revenue was up just 2.3% to $2.97B, but revenue per package fell. Asian exports have slowed as China's economy cools, & some European countries slide into recession. The intl business, which has seen double-digit quarterly sales gains, has been slowing since last summer. Part of the reason that shipments from Asia to the US are down is that some businesses are locating factories in Mexico or other countries closer to home, to keep a tighter handle on inventory. UPS tends to be a good indicator of broader economic health because it moves millions of packages for businesses & consumers every day. The stock fell $2.59.
UPS First-Quarter Profit, Revenue Miss Estimates as Overseas Growth Slows
United Parcel Service, Inc. (UPS)
Markets are absorbing the gains from earlier this week as earnings reports are getting mixed grades today. The jobless report was a reminder that some of the enthusiasm a few months ago over the recovery may have premature. Next Fri, the big jobs report comes out which could be holding back buyers. Dow has been meandering for a couple of months. looking for direction. Earnings have not been a help. Gold can be a contrary indicator but has done little this year.
Dow Industrials
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