Dow fell 71, decliners over advancers better than 3-2 & NAZ was off 15. The decline didn't stop Apple (AAPL), up 3+ to the 617s for another record close. The averages I follow were generally a little lower, but nothing dramatic (shown in the table to right of this post). The Alerian MLP Index dropped 2 to the 391s, 20 below its recent record highs. The other major mover was gold falling 22 to 1662 & is having a very choppy qtr following 11 straight up years. Dow is hanging onto a gain of 80 for the week. Going into the end of the qtr, anything is possible with portfolio managers evening out positions & trying to pretty up portfolios. I know this is shorter than usual, had internet connection problems. Hopefully they are getting better.
Wednesday, March 28, 2012
Lower markets after durable goods data
Dow lost 30, decliners over advancers 2-1 & NAZ is down 7. The Financial Index was up a fraction in the 213s & up 38 in Q1.
The MLP index fell 3 to the 391s (20 below its record highs last month) & the REIT index was of 1+ to the 251s (just below its yearly highs). Junk bond funds & Treasuries were mixed. Oil continues little changed as talk about releasing oil from the strategic reserves has not been a factor in trading. Gold is showing flattish, although a later reading has it down $11.
Photo: Bloomberg
Orders for durable goods rose in Feb as demand for cars, computers & capital equipment spurred the 4th monthly gain in the last 5. Bookings increased 2.2%, less than projected, after a revised 3.6% decline the prior month, according to the Commerce Dept. Expectations were for a 3% decline. Corp equipment upgrades & consumer purchases of new cars are bolstering production, keeping the industry a source of strength for the expansion. However higher fuel costs & slowdowns in Europe & China may limit the pace of manufacturing this year. Orders for durables excluding transportation equipment increased 1.6% after a 3% decline in Jan. Demand for transportation equipment climbed 3.9%, led by a 6% advance in civilian aircraft orders. Boeing (BA), a Dow stock, received 237 orders last month, up from 150 in Jan. Bookings for automobiles & parts increased 1.6%, the most since Oct, after a 1.3% rise the previous month. The data is so-so.
Orders for Durable Goods in U.S. Increased 2.2% in February
The number contracts signed to buy homes dipped in Feb from nearly a 2-year high, a mixed signal ahead of the spring home-buying season. The National Association of Realtors said its index of sales agreements declined 0.5% last month to a reading of 96.5. The Jan reading of 97 was the highest since Apr 2010, the last month buyers could qualify for a federal home-buying tax credit. A reading of 100 or higher is considered healthy. last reached in Apr 2010. More signings in recent months are among the signs of a slight pick-up in the housing market. But the decline in Feb was disappointing after the 3 best months of hiring in 2 years. Contract signings typically indicate where the housing market is headed. There's a 1-2 month lag between a signed contract & a completed deal & a sale isn't final until a mortgage is closed. Jan & Feb made up the best winter for completed sales in 5 years, when the housing crisis began. Builders are more confident about the market. In Feb, they requested the most permits to build single-family homes & apartments since Oct 2008 (following Lehman's collapse). The housing recovery remains a little shaky.
Contracts for U.S. Homes Dipped in February
Photo: Yahoo
Ben Bernanke said it's too soon to declare victory in the economic recovery, warning against complacency in policymaking as the outlook brightens. "We haven't quite yet got to the point where we can be completely confident that we're on a track to full recovery," Bernanke said . The Federal Reserve chairman welcomed a decline in the unemployment rate & signs financial strains in debt-stricken Europe were easing. But he noted that joblessness was still at a troubling high & housing markets still weak. "I think it's really important not to be complacent. We have a long way to go, a lot of work to do, and we're going to keep doing that." Bernanke said the central bank would take no options off the table (relating to QE3) but he did not suggest a further round of bond buying was imminent. In a speech on Mon, he said the economy would need to grow more quickly to ensure continued progress in reducing the jobless rate.
Bernanke: Far Too Early to Call Victory in Recovery
Once again, not a lot is happening in the markets. But the chart above for an ETN that tracks the Alerian MLP Index shows MLPs have lost favor in the last month & are no longer market leaders. Dow was been able to work its way higher in Mar, but that climb involved stumbling. Gas is above $3.91 & going higher, not good for the markets.
The MLP index fell 3 to the 391s (20 below its record highs last month) & the REIT index was of 1+ to the 251s (just below its yearly highs). Junk bond funds & Treasuries were mixed. Oil continues little changed as talk about releasing oil from the strategic reserves has not been a factor in trading. Gold is showing flattish, although a later reading has it down $11.
JPMorgan Chase Capital XVI (AMJ
Treasury yields:
U.S. 3-month | 0.081% | |
U.S. 2-year | 0.333% | |
U.S. 10-year | 2.194% |
| CLK12.NYM | ....Crude Oil May 12 | ...106.91 | ... 0.04 | (0.0%) |
| GCH12.CMX | ...Gold Mar 12 | ........1,686.70 | ... 1.20 | (0.1%) |
Get the latest daily market update below:
Orders for durable goods rose in Feb as demand for cars, computers & capital equipment spurred the 4th monthly gain in the last 5. Bookings increased 2.2%, less than projected, after a revised 3.6% decline the prior month, according to the Commerce Dept. Expectations were for a 3% decline. Corp equipment upgrades & consumer purchases of new cars are bolstering production, keeping the industry a source of strength for the expansion. However higher fuel costs & slowdowns in Europe & China may limit the pace of manufacturing this year. Orders for durables excluding transportation equipment increased 1.6% after a 3% decline in Jan. Demand for transportation equipment climbed 3.9%, led by a 6% advance in civilian aircraft orders. Boeing (BA), a Dow stock, received 237 orders last month, up from 150 in Jan. Bookings for automobiles & parts increased 1.6%, the most since Oct, after a 1.3% rise the previous month. The data is so-so.
Orders for Durable Goods in U.S. Increased 2.2% in February
The number contracts signed to buy homes dipped in Feb from nearly a 2-year high, a mixed signal ahead of the spring home-buying season. The National Association of Realtors said its index of sales agreements declined 0.5% last month to a reading of 96.5. The Jan reading of 97 was the highest since Apr 2010, the last month buyers could qualify for a federal home-buying tax credit. A reading of 100 or higher is considered healthy. last reached in Apr 2010. More signings in recent months are among the signs of a slight pick-up in the housing market. But the decline in Feb was disappointing after the 3 best months of hiring in 2 years. Contract signings typically indicate where the housing market is headed. There's a 1-2 month lag between a signed contract & a completed deal & a sale isn't final until a mortgage is closed. Jan & Feb made up the best winter for completed sales in 5 years, when the housing crisis began. Builders are more confident about the market. In Feb, they requested the most permits to build single-family homes & apartments since Oct 2008 (following Lehman's collapse). The housing recovery remains a little shaky.
Contracts for U.S. Homes Dipped in February
Ben Bernanke said it's too soon to declare victory in the economic recovery, warning against complacency in policymaking as the outlook brightens. "We haven't quite yet got to the point where we can be completely confident that we're on a track to full recovery," Bernanke said . The Federal Reserve chairman welcomed a decline in the unemployment rate & signs financial strains in debt-stricken Europe were easing. But he noted that joblessness was still at a troubling high & housing markets still weak. "I think it's really important not to be complacent. We have a long way to go, a lot of work to do, and we're going to keep doing that." Bernanke said the central bank would take no options off the table (relating to QE3) but he did not suggest a further round of bond buying was imminent. In a speech on Mon, he said the economy would need to grow more quickly to ensure continued progress in reducing the jobless rate.
Bernanke: Far Too Early to Call Victory in Recovery
Once again, not a lot is happening in the markets. But the chart above for an ETN that tracks the Alerian MLP Index shows MLPs have lost favor in the last month & are no longer market leaders. Dow was been able to work its way higher in Mar, but that climb involved stumbling. Gas is above $3.91 & going higher, not good for the markets.
Dow Industrials
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Tuesday, March 27, 2012
Markets fluctaute after consumer confidence data
Dow hovered near breakeven all day with selling into the close. It finished down 43, decliners ahead of advancers 4-3 & NAZ slid 2. The Financial Index dropped 2 to the 213s, profit taking with the index still up 38 in Q1. The MLP index fell 1½ to the 395s & the REIT index was up a fraction in the 253s to its yearly highs. The chart below shows the run for an ETF that tracks the Alerian MLP index & it's pretty, although it's had tough going in the last month. Junk bond funds were mixed but Treasuries rallied after their recent sell-off. Oil did little after rumors about the US releasing oil from its strategic reserves. The immediate effect could lower prices, but the downward pressure on prices should not last. Gold pulled back slightly after yesterday's rally.
![Live 24 hours gold chart [Kitco Inc.]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_tCexYznN8_4M5QCqvJQw-O-b7ouF-rVj5PrdSsABhtqc7dfPH8_UP2C7hea9Aj8RjNbgev06glZq4219KT4BTT6frQKUqhveP5CaDn=s0-d)
Photo: Bloomberg
Enbridge Inc (ENB) & Enterprise Products Partners (EPD) will more than double the capacity of the Seaway Pipeline, easing a major oil glut in the US that has led to an unprecedented distortion in crude markets. The expansion would add 450K barrels per day (bpd) of capacity to the Seaway system, raising its capacity to 850K bpd by mid-2014. The company also plans to increase the size of its Flanagan South Pipeline from Flanagan, Illinois to Cushing, Oklahoma, to a 36-inch diameter line with an initial capacity of 585K bpd. The estimated cost would increase to $2.8B from $1.9B. ENB share of the cost of the Seaway pipeline twin line & extension is expected to be about $1B. The companies are racing to unlock a glut of crude in the Midwest, which has built up over the year due to rising supplies from Canada & North Dakota. Ballooning inventories at Cushing, the storage hub for US crude has led to a greater price difference between US crude & the European benchmark Brent. The US crude discount to Brent hit a record $28 in Oct, but the spread is now around $18. "Enbridge's Gulf Coast Access projects give Bakken and western Canadian producers timely, economical and reliable options to deliver a variety of crudes to refinery hubs throughout the heart of North America and now as far as the Gulf Coast," said Patrick D. Daniel, CEO of ENB said. It's MLP subsidiary, Enbridge Energy (EEP), will build & operate the extension of its pipeline which comes down from Canada. EEP units slipped 4¢.
Enbridge Venture Plans Pipes to Gulf as Keystone Blocked
Photo: Yahoo
Lennar posted a sharp jump in new orders & said it was seeing real signs of recovery in the housing market. "The housing market and the overall economy 0are stabilizing and a very real trend is beginning to take shape," CEO Miller said. Q1 new orders jumped 33% to 3022 homes. LEN has been able to increase prices & reduce sales incentives in some of its communities. Orders have been increasing for 4 straight qtrs as low interest rates & home prices have helped improve sentiments towards owning a home. Homebuilder sentiment in Mar was the highest level since Jun 2007. Permits for homebuilding neared a 3½ year high in Feb reinforcing views that home building would add to economic growth this year for the first time since 2005. However, CEO Miller warned that the recovery process would not be smooth. "The stabilization process after a full seven year decline in housing is rocky and erratic and is certainly not yet broad-based," Miller said. He said recovery will emanate from the most desirable markets & spread slowly outward over the next few years. The stock rose 1.22 (5%).
Lennar Hits Highest Since 2007 as Income Beats Estimates
Walgreen, a Dividend Aristocrat, posted a 7.6% decline in quarterly profit as it filled fewer prescriptions due to the loss of a contract & a mild flu season. WAG stopped filling prescriptions for patients in the Express Scripts (ESRX) after the companies failed to agree on a new contract. The number of prescriptions filled at comparable WAG stores fell 8.6% in Jan & 9.5% during the first 28 days of Feb. EPS was 78¢ in fiscal Q2 versus 80¢ a year earlier. Sales rose 0.8% to $18.6B & sales at stores open at least a year, or same-store sales, fell 1.5%. The stock rose 41¢, but has a drab chart over the last year.
Walgreen Profit Tops Analysts’ Estimates as New Food Products Boost Sales
Dow is having another excellent month & qtr. It's up 245 in Mar & almost 1K in Q1. The major driver has been improved economic data in the US with stronger factory output & more hiring of workers leading to a lower unemployment rate. But earnings season begins in 2 weeks & there is a lot of nervousness which has been holding back buyers in recent weeks. Also, gas at the pump is pushing $3.90 which compares with an all time record of $4.11. High priced gas has always been a major negative for the stock market.
JPMorgan Chase Capital XVI (AMJ)
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.081% | |
U.S. 2-year | 0.323% | |
U.S. 10-year | 2.187% |
| CLK12.NYM | ...Crude Oil May 12 | ...107.24 | ... 0.21 | (0.2%) |
Enbridge Inc (ENB) & Enterprise Products Partners (EPD) will more than double the capacity of the Seaway Pipeline, easing a major oil glut in the US that has led to an unprecedented distortion in crude markets. The expansion would add 450K barrels per day (bpd) of capacity to the Seaway system, raising its capacity to 850K bpd by mid-2014. The company also plans to increase the size of its Flanagan South Pipeline from Flanagan, Illinois to Cushing, Oklahoma, to a 36-inch diameter line with an initial capacity of 585K bpd. The estimated cost would increase to $2.8B from $1.9B. ENB share of the cost of the Seaway pipeline twin line & extension is expected to be about $1B. The companies are racing to unlock a glut of crude in the Midwest, which has built up over the year due to rising supplies from Canada & North Dakota. Ballooning inventories at Cushing, the storage hub for US crude has led to a greater price difference between US crude & the European benchmark Brent. The US crude discount to Brent hit a record $28 in Oct, but the spread is now around $18. "Enbridge's Gulf Coast Access projects give Bakken and western Canadian producers timely, economical and reliable options to deliver a variety of crudes to refinery hubs throughout the heart of North America and now as far as the Gulf Coast," said Patrick D. Daniel, CEO of ENB said. It's MLP subsidiary, Enbridge Energy (EEP), will build & operate the extension of its pipeline which comes down from Canada. EEP units slipped 4¢.
Enbridge Venture Plans Pipes to Gulf as Keystone Blocked
Enbridge Energy, L.P. (EEP)
Photo: Yahoo
Lennar posted a sharp jump in new orders & said it was seeing real signs of recovery in the housing market. "The housing market and the overall economy 0are stabilizing and a very real trend is beginning to take shape," CEO Miller said. Q1 new orders jumped 33% to 3022 homes. LEN has been able to increase prices & reduce sales incentives in some of its communities. Orders have been increasing for 4 straight qtrs as low interest rates & home prices have helped improve sentiments towards owning a home. Homebuilder sentiment in Mar was the highest level since Jun 2007. Permits for homebuilding neared a 3½ year high in Feb reinforcing views that home building would add to economic growth this year for the first time since 2005. However, CEO Miller warned that the recovery process would not be smooth. "The stabilization process after a full seven year decline in housing is rocky and erratic and is certainly not yet broad-based," Miller said. He said recovery will emanate from the most desirable markets & spread slowly outward over the next few years. The stock rose 1.22 (5%).
Lennar Hits Highest Since 2007 as Income Beats Estimates
Lennar Corporation (LEN)
Walgreen, a Dividend Aristocrat, posted a 7.6% decline in quarterly profit as it filled fewer prescriptions due to the loss of a contract & a mild flu season. WAG stopped filling prescriptions for patients in the Express Scripts (ESRX) after the companies failed to agree on a new contract. The number of prescriptions filled at comparable WAG stores fell 8.6% in Jan & 9.5% during the first 28 days of Feb. EPS was 78¢ in fiscal Q2 versus 80¢ a year earlier. Sales rose 0.8% to $18.6B & sales at stores open at least a year, or same-store sales, fell 1.5%. The stock rose 41¢, but has a drab chart over the last year.
Walgreen Profit Tops Analysts’ Estimates as New Food Products Boost Sales
Walgreen Co. (WAG)
Dow is having another excellent month & qtr. It's up 245 in Mar & almost 1K in Q1. The major driver has been improved economic data in the US with stronger factory output & more hiring of workers leading to a lower unemployment rate. But earnings season begins in 2 weeks & there is a lot of nervousness which has been holding back buyers in recent weeks. Also, gas at the pump is pushing $3.90 which compares with an all time record of $4.11. High priced gas has always been a major negative for the stock market.
Dow Industrials
Get your favorite symbols' Trend Analysis TODAY!
Mixed markets on lower consumer confidence
Dow was up 8, advancers & decliners were about equal & NAZ gained 6. The Financial Index was off fractionally to 215 (a 10 month high). The MLP index added a fraction in the 397s & the REIT index rose a fraction in the 253s (new yearly high territory). Junk bond funds were mixed or higher while Treasuries rebounded after recent selling. Oil & gold were flattish, but there is talk about releasing oil from the strategic reserves (more supply coming to market will reduce the price of crude oil & this is an election year).
Photo: Bloomberg
Consumers' confidence in the US economy dropped in Mar amid higher gas prices after confidence rose to the highest level in a year during the previous month. The Conference Board said that its Consumer Confidence Index fell to 70.2, down from a revised 71.6 in Feb. Expectations were for a reading of 70. Consumer confidence has made a recovery since it fell to an all-time low of 25.3 in Feb 2009. However the Mar reading is below the 90 reading that indicates a healthy economy & hasn't been near 90 since Dec 2007. The indexi s important because spending on things from clothing to health care accounts for 70% of the nation's economic activity.
Consumer Confidence in U.S. Holds Close to One-Year High
Pfizer, a Dow stock & the largest drugmaker, may go beyond the divestiture plans it has already announced. (exploring strategic alternatives for its animal health & nutrition businesses). CEO Read, at a recent meeting with Goldam Sachs (GS) indicated he may be willing to further split up the company after selling or spinning off those 2 units, This follows Abbott (ABT), a Dividend Aristocrat, plans to divide into 2 publicly traded companies, with one focused on drug development & the other on products including medical devices, infant formula & generics. “Ultimately, our decisions will be driven by value creation for the businesses and delivering the greatest after- tax value for our shareholders over time,” according to a PFE spokesman. Of the $67B in 2011 revenue, $18B fell under “established products” or “emerging markets.” The animal health & infant nutrition units that Pfizer is currently divesting had $6.3B in sales. The stock rose 47¢ & has had a nice run after the initial announcement about selling off units.
Pfizer Rises After Goldman Raises Possibility of Full Breakup
This is another day when not a lot is happening in the markets. The decline in consumer confidence is expected after the sharp rise in gas prices. Dow is within whispering distance of its 2 weeks ago & bulls want to take it higher. But the gains are coming with difficulty which I see as a very tired, overbought market
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.076% | |
U.S. 2-year | 0.327% | |
U.S. 10-year | 2.200% |
| CLK12.NYM | ...Crude Oil May 12 | ...106.72 | ... 0.31 | (0.3%) |
| GCH12.CMX | ...Gold Mar 12 | ........1,686.70 | ... 1.20 | (0.1%) |
Get the latest market update below:
Consumers' confidence in the US economy dropped in Mar amid higher gas prices after confidence rose to the highest level in a year during the previous month. The Conference Board said that its Consumer Confidence Index fell to 70.2, down from a revised 71.6 in Feb. Expectations were for a reading of 70. Consumer confidence has made a recovery since it fell to an all-time low of 25.3 in Feb 2009. However the Mar reading is below the 90 reading that indicates a healthy economy & hasn't been near 90 since Dec 2007. The indexi s important because spending on things from clothing to health care accounts for 70% of the nation's economic activity.
Consumer Confidence in U.S. Holds Close to One-Year High
Pfizer, a Dow stock & the largest drugmaker, may go beyond the divestiture plans it has already announced. (exploring strategic alternatives for its animal health & nutrition businesses). CEO Read, at a recent meeting with Goldam Sachs (GS) indicated he may be willing to further split up the company after selling or spinning off those 2 units, This follows Abbott (ABT), a Dividend Aristocrat, plans to divide into 2 publicly traded companies, with one focused on drug development & the other on products including medical devices, infant formula & generics. “Ultimately, our decisions will be driven by value creation for the businesses and delivering the greatest after- tax value for our shareholders over time,” according to a PFE spokesman. Of the $67B in 2011 revenue, $18B fell under “established products” or “emerging markets.” The animal health & infant nutrition units that Pfizer is currently divesting had $6.3B in sales. The stock rose 47¢ & has had a nice run after the initial announcement about selling off units.
Pfizer Rises After Goldman Raises Possibility of Full Breakup
Pfizer, Inc. (PFE)
This is another day when not a lot is happening in the markets. The decline in consumer confidence is expected after the sharp rise in gas prices. Dow is within whispering distance of its 2 weeks ago & bulls want to take it higher. But the gains are coming with difficulty which I see as a very tired, overbought market
Dow Industrials
Get your favorite symbols' Trend Analysis TODAY!
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