S&P 500 FINANCIALS INDEX rose to 100 but slipped back at the close, helped by Jamie Dimon's comments (see below):
| Value 99.14 | Change 2.32 | % Change 2.4% |
The Alerian MLP Index had a nice bounce off its low, up 3 today bringing it to beak even for 2009. The Dow Jones REIT Index fell 2 in the closing mins. Junk bond funds rallied while the VIX dropped 1 today bringing the 3 day decline to 9 points.
Alerian MLP Index --- 2 weeks
Oil sold off again on the forecast of much weaker demand for oil. Gold closed up 8 at 903.
| CLJ09.NYM | ..Crude Oil Apr 09 | ..42.97 | .. 2.74 ......(6.0%) |
Jamie Dimon chief executive officer of JPMorgan (JPM), a Dow stock, in a speech said he sees modest signs of an economic recovery & endorsed a plan to create a U.S. systemic risk regulator (proposed by Barney Frank, chairman of the House of Representatives Financial Services Committee). He also opposes nationalization of U.S. banks. If a bank is in poor shape, the FDIC has the responsibility to deal with it. His comments may have brought buyers back into the markets late in the day.
•Dimon Says Banking System Can Be Saved If Corporate `Vilification' Stops
As mentioned a few days ago in this blog, for those who don't mind playing with fire, there can be rewards buying Citi at 1. It's had a great couple of days, shown below. However, when playing with fire there's always the risk of getting burned badly. It's hard to remember that as recently as last year, this was considered the largest banking system in the world. Today it's a just dollar stock (up 9¢ to 1.54 today) but in the Dow.
Citigroup ---- 1 week
Hardly a convincing rally. After big gains yesterday, markets were shaky today. Dow was intimidated by the 7K ceiling.
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