Dow dropped 61, decliners over advancers 2-1 & NAZ lost 9. The MLP index fell a fraction to 535 & the REIT index was off fractionally to 310. Junk bond funds slid lower & Treasuries had modest gains. Oil inched higher & gold finally had a good gain, trying to get back over 1300.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
The number of Americans filing for unemployment benefits was little changed last week & near the lowest level in 7 years as employers held on to staff in an improving economy. Claims decreased 1K to 298, according to the Labor Dept. The forecast called for an increase to 300K. Claims have been hovering near the lowest levels since 2007 as the labor market continues to make progress. Now, it’s up to hiring to cut slack enough to force employers to raise pay, which, in turn, could spur more household spending. The 4 week average of claims, a less-volatile measure than the weekly figure, declined to 299K from 301K the week before. The number continuing to receive jobless benefits climbed by 25K to 2.53M in the latest week.
Jobless Claims in U.S. Little Changed as Economy Strengthens
The US economy expanded more than previously forecast in Q2, propelled by the biggest gain in business investment in more than 2 years that bodes well for the rest of 2014. GDP rose at a 4.2% annualized rate, up from an initial estimate of 4%, & follows a Q1 contraction, according to the Commerce Dept. The forecast was for a 3.9% gain. Corp profits climbed by the most in almost 4 years. The revisions to GDP showed the pickup in growth last qtr came from bigger gains in corp spending on structures & equipment & a smaller trade deficit that was partly offset by more tepid inventory building. Business investment increased at an 8.1% annualized rate, the most since 2012. Today’s report also included revisions to Q1 personal income. Wages & salaries rose by $131B, revised down from an initially reported $135B gain. They climbed by $103B in Q2.
Economy in U.S. Expands 4.2%, More Than Previously Forecast
German unemployment unexpectedly rose in Aug as a stagnating euro-area recovery & tension with Russia darkened the outlook for Europe's largest economy. The number out of work climbed a seasonally adjusted 2K to 2.901M in Aug, according to the Federal Labor Agency. Economists forecast a decline of 5K. The adjusted jobless rate was unchanged at 6.7%, the lowest level in more than 2 decades. Germany's economy shrank in Q2 & the strength of any rebound is critical for the euro area. The region’s stalling recovery & weakest inflation since 2009 has prompted ECB Mario Draghi to signal that he could step in with quantitative easing. The number out of work rose 3K in western Germany & fell 1K in the east. While a 0.2% drop in GDP last qtr was largely weather-related, the outlook is now clouded by escalating intl sanctions against Russia because of its support for separatists in Ukraine. The Ifo index of business sentiment in Germany declined for a 4rth month in Aug & the ZEW gauge of investor confidence slid to the lowest level since 2012. The Bundesbank has warned that an anticipated rebound in H2 is now in doubt. The labor agency said employment demand in Germany remains at a “good level,” & the figures contrast with those of the rest of the euro area. Unemployment in the currency bloc probably held at 11.5% in Jul, near the record 12% set last year.
The averages may be lower, but volume is very light & there is little going on in the markets. Ukraine is the biggest foreign story today, as fighting continues. Many traders are away on an extended holiday. Unless there is a major flareup overseas, today & tomorrow should be non events for stocks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLV14.NYM | ...Crude Oil Oct 14 | ...94.09 |  ...0.21 | (0.2%) |
| GCU14.CMX | ...Gold Sep 14 | ...1,292.80 | ...10.90 | (0.9%) |
Photo: Bloomberg
The number of Americans filing for unemployment benefits was little changed last week & near the lowest level in 7 years as employers held on to staff in an improving economy. Claims decreased 1K to 298, according to the Labor Dept. The forecast called for an increase to 300K. Claims have been hovering near the lowest levels since 2007 as the labor market continues to make progress. Now, it’s up to hiring to cut slack enough to force employers to raise pay, which, in turn, could spur more household spending. The 4 week average of claims, a less-volatile measure than the weekly figure, declined to 299K from 301K the week before. The number continuing to receive jobless benefits climbed by 25K to 2.53M in the latest week.
Jobless Claims in U.S. Little Changed as Economy Strengthens
The US economy expanded more than previously forecast in Q2, propelled by the biggest gain in business investment in more than 2 years that bodes well for the rest of 2014. GDP rose at a 4.2% annualized rate, up from an initial estimate of 4%, & follows a Q1 contraction, according to the Commerce Dept. The forecast was for a 3.9% gain. Corp profits climbed by the most in almost 4 years. The revisions to GDP showed the pickup in growth last qtr came from bigger gains in corp spending on structures & equipment & a smaller trade deficit that was partly offset by more tepid inventory building. Business investment increased at an 8.1% annualized rate, the most since 2012. Today’s report also included revisions to Q1 personal income. Wages & salaries rose by $131B, revised down from an initially reported $135B gain. They climbed by $103B in Q2.
Economy in U.S. Expands 4.2%, More Than Previously Forecast
German unemployment unexpectedly rose in Aug as a stagnating euro-area recovery & tension with Russia darkened the outlook for Europe's largest economy. The number out of work climbed a seasonally adjusted 2K to 2.901M in Aug, according to the Federal Labor Agency. Economists forecast a decline of 5K. The adjusted jobless rate was unchanged at 6.7%, the lowest level in more than 2 decades. Germany's economy shrank in Q2 & the strength of any rebound is critical for the euro area. The region’s stalling recovery & weakest inflation since 2009 has prompted ECB Mario Draghi to signal that he could step in with quantitative easing. The number out of work rose 3K in western Germany & fell 1K in the east. While a 0.2% drop in GDP last qtr was largely weather-related, the outlook is now clouded by escalating intl sanctions against Russia because of its support for separatists in Ukraine. The Ifo index of business sentiment in Germany declined for a 4rth month in Aug & the ZEW gauge of investor confidence slid to the lowest level since 2012. The Bundesbank has warned that an anticipated rebound in H2 is now in doubt. The labor agency said employment demand in Germany remains at a “good level,” & the figures contrast with those of the rest of the euro area. Unemployment in the currency bloc probably held at 11.5% in Jul, near the record 12% set last year.
The averages may be lower, but volume is very light & there is little going on in the markets. Ukraine is the biggest foreign story today, as fighting continues. Many traders are away on an extended holiday. Unless there is a major flareup overseas, today & tomorrow should be non events for stocks.
Dow Jones Industrials
No comments:
Post a Comment