Stocks close week on a strong note

Dow, on a good day, rose 217, advancers over decliners 4-1 & NAZ was up 45. After surging in early trading, Dow settled in above 8200 where it remained for the rest of the day. Caution was thrown to the wind after another dismal jobs report (3rd consecutive monthly report showing more than 500K workers were laid off). The focus was on the nearly $1T stimulus package & maybe even more help for troubled banks. Banks did especially well.

S&P 500 FINANCIALS INDEX had one its better days in some time. But it's coming off depressed lows.

Value 131.39

Change 9.88

% Change 8.1%

The Alerian MLP Index was up 65¢ to 202, the Dow Jones REIT Index rose 9 (7%) & junk bond funds were higher while the VIX, volatility index, slipped 1 to the 42s. Oil reduced its loss, taking it back over 40 (but down 1 for the day).


Caterpillar (CAT), a Dow stock, up 1.60, raised $1.3B by selling single A rated debt. CAT paid its highest rate in 9 years & the debt has the widest spread above Treasuries in over 30 years. The financing was needed to pay off maturing debt. This is the first investment grade borrowing in 5 months (a good sign that the credit freeze is thawing), after the gov decided to bailout banks in mid Sep.

Caterpillar Raises $1.3 Billion in Biggest Bond Sale in 2 Weeks



Senator Lieberman (I) from CT on Bloomberg News said they are trying to cut $100B out of the stimulus package (good programs but not really needed for economic recovery). If so, why were they included in the first place? He was hopeful they could complete work today (see article below). It's amazing how easily & quickly pork can be eliminated, especially when it may only involve a portion of the total amount. Following passage in the Senate, the bill still has to be blended with the House package, not an overnight job.

•Grassley Says Obama Vetting of Nominees `Too Rushed,' Led to Tax Troubles