Markets up on favorable reports

Dow is up 96, advancers ahead of decliners better than 2-1 & NAZ is up 9. Markets were encouraged by a favorable a private report showing the economy gained 9K jobs in June vs estimates of a 60K loss. As reported last night,the SEC is extending the new rules on short-selling. Pres Bush signed the housing bill helping 400K homeowners & Fannie Mae (FNM)/Freddie Mac (FRE). Oil continues to pull back, now it's below 122. Collectively these were taken as good signs for stock buyers.

S&P 500 FINANCIALS INDEX

Value 290.30

Change up 2.93

% Change up 1.02%

Financials are cooling down, but are still having a nice day. In 1+ days, they're up 24. A leader, Bank of America (BAC), is up more than 1, even topped 34 on today's opening as shown in the 10 day chart:





While financials are doing well, REITs pulled back after yesterday's strong gains. The Alerian MLP index inched up to 266, remaining close to 262 support level. MLPs while not directly related to oil, they only move oil & gas around, seem to follow its lead. Most will be going ex-distribution (typically representing 2+% of the stock's price) in the next few days distorting raw numbers. Sadly junk bond funds still can't get no respect with their 12% yields.

More macro economic numbers are coming later this week. I think they will be giving gloomy signals. Oils will be reporting earnings in the next couple of days which should be record numbers. Bloomberg TV reported that hedge fund managers had a brutal (one of the worst ever) month after wrong bets. If true, prepare for big stock price swings when they try to even out positions.