Markets advance despite Chrysler woes

All news is good news which is driving stocks higher! Stocks shot out of the gate with Dow gaining more than 100, but the gusto is subsiding. Dow is up 82, advancers over decliners almost 4-1 & NAS gained 32. Banks are leading the charge.

S&P 500 FINANCIALS INDEX

Value 148.95

Change 2.37

% Change 1.6%

.name.....price......change....% change........volume

BAC		8.99	0.31	3.57%	104,079,939
C		3.19	0.07	2.24%	90,520,034
JPM		34.74	0.26	0.75%	21,087,383
WFC		20.37	0.40	2.00%	26,413,848

The Alerian MLP Index rose .65 to the 214s, another yearly high. REITs & junk bonds were up, giving very nice gains for Apr while the VIX fell to 34.75, lowest level for the year. Oil is little changed despite bullish feelings in the stock markets.


Chrysler is expected to throw in the towel & file for Chapter 11. Then they hope to be able to combine with Fiat. It's not absolutely final, but they only have a few more hours to come up with a rescue package.

•Chrysler to File for Bankruptcy After Some Creditors Balk, Obama Aide Says


The number of newly filed unemployment claims fell to 631K last week, down from 645K in the prior week. The four-week moving average, which smooths out volatility, dropped to 637K, the lowest level since late Feb & a decrease of 20K from the high in early Apr. Goldman Sachs economists said a decline of 30-40K in the four-week average is needed to signal a peak. However the number continuing to draw unemployment benefits jumped to almost 6.3M, the highest on records dating back to 1967 & steeper than predicted.

US Initial Jobless Claims Fell to 631,000 Last Week


Consumer spending fell 0.2% in Mar, first decline in 3 months. Consumer incomes dropped 0.3%, worse than expected. Continued massive waves of layoffs are taking their toll. The drop in spending was the first decline after two consecutive increases & the negative number in Mar is a worrisome sign about future economic prospects.

•U.S. Consumer Spending Declines More Than Forecast as Job Losses Take Toll


Dow has had probably the best 2 months in history. Even with sideways trading, it will be up almost 600 in Apr if it can hold at the present level. However dreary reality including: continuing (& probably growing) high unemployment, banks stress test results, massive gov spending & borrowing, Chrysler & probable GM bankruptcies, etc. should not be ignored.


Dow Jones Industrials --- 2 months