Banks had a good day on hopes for their bailout package, S&P 500 FINANCIALS INDEX up 6. Bank of America (BAC), as a representative bank, gained 51¢, recovering part of yesterday's decline.
| Value 124.81 | Change 6.15 | % Change 5.2% |
US Bancorp (USB), the last remaining bank in the Dividend Aristocrat group, keeps getting mentioned as one of the stronger banks, having avoided the ugliest parts of the credit crisis. Berkshire Hathaway has a large holding, although diminished in size after the stock has fallen in half in just a few months. USB has an 11+% yield & a decent 10 year track record (i.e. it doesn't look overly ugly, a positive signal today).
US Bancorp --- 10 years
Bank execs are earning their multi $M salaries today testifying before congress. Just a few of the questions mentioned getting rid of divs (they will accept one penny/qtr) & selling corp planes so they can pay back credit holders (i.e. taxpayers). The bigger issue for congress is they would like to see banks get out there & lend.
•Bank Chiefs Urged to Boost Credit as House Cites Ire Over Taxpayer Support
The Alerian MLP Index pulled back pennies, closing at 199.02 (shown in the Yahoo badge in my right sidebar). The index can't decide whether it wants 200 to be a floor or ceiling. At least MLPs have had a good year (coming off depressed levels) so far. Other indices were little changed.
Oil pulled back to a contract low, well below 40. Oil has been weak on higher inventory levels in the US. Inventories rose 4.7M barrels last week, 30M barrels in the last 5 weeks. With the cold weather of winter easing, inventories may rise further in coming weeks. Oil stocks were weak (affecting MLPs) but Chevron (CVX) was down only pennies.
| CLH09.NYM | ..Crude Oil Mar 09 | ...36.15 | .. 1.40......(3.7%) |
The Senate reportedly has trimmed back the stimulus bill to "only" $789B. The goal is to have it ready for final signing on Fri. Details will be announced. The reduced amount is necessary to get agreement for a final bill needed in both houses (not to mention the pres).
•U.S. Lawmakers Agree on $789 Billion Compromise Stimulus Bill, Baucus Says
Buyers should return as the biggest fiscal spending package in history approaches final approval. Dow had gotten used to trading under 8K, but a rally would reverse 8K from a ceiling to a floor.
After hours, Masco (MAS), a Dividend Aristocrat with a 50 year record of paying higher annual divs, announced lower earnings & will recommend the annual div rate be cut from 94¢ to 75¢ to help conserve cash.
Masco Corporation Reports 2008 Results, Provides 2009 Full-Year Guidance and Announces Planned Dividend Reduction
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