Major banks such as the 3 old line banks in the Dow, Bank of America (BAC), Citigroup (C) & JPMorgan (JPM), were up at least 3% today taking the S&P 500 FINANCIALS INDEX higher.
S&P 500 FINANCIALS INDEX
| Value 146.58 | Change 6.66 | % Change 4.8% |
The Alerian MLP Index keeps forging ahead. It began Apr at 191 & closed today in the 213s, a very nice monthly gain with a fairly smooth advance. It's also up 21% YTD. The Dow Jones REIT Index is also having an excellent month, although it has had a choppier ride. It started at 101 & finished today in the 131s, not bad although starting from very depressed levels with extraordinary yields.
Alerian MLP Index --- 1 month
Dow Jones REIT Index --- 1 month
Oil joined in on the ride up today as fears that the flu scare will hurt travel are waning, not to mention a more optimistic view of global economies.
| CLM09.NYM | ..Crude Oil Jun 09 | ..50.91 | .. 0.99 ......(2.0%) |
TEPPCO (TPP) rejected the takeover bid by Enterprise (EPD):
UPDATE - Teppco Partners rejects $2.75 bln Enterprise bidat Reuters(Wed 4:39pm)
The Federal Reserve thinks the worst of the recession is over, so it will stop buying Treasury bonds & mortgage securities. While the economy continues to contract, the contraction is slowing which they view as a favorable sign. Steady as she goes. In addition, Paul Volcker, head of Obama’s Economic Recovery Advisory Board, said the U.S. economy is “leveling off at a low level” and doesn’t need a second fiscal stimulus package. The 6.1% decline in Q1 GDP was “expected.” He added that more recent data show the contraction in housing, business spending and inventories has slowed, and stimulus spending is only just beginning to hit the economy.
•Fed Keeps Purchase Targets Unchanged in Sign Worst of Recession Has Passed
•Volcker Says U.S. Economy Is `Leveling Off,' No Need for Further Stimulus
- No surprises from the Fed- Zacks.com
Chrysler's head, Bob Nardelli, is saying they are making progress. They have to, their life expectancy is measured in hours. Meanwhile some bondholders are holding out, hoping to get more than 225 shares of GM for each $1000 bond.
Dow looks like it is trying to break thru to new high territory. It started Apr at 7609 but the first few days supplied almost of the gains for the month. Tomorrow will show if it is serious about trading higher.
Dow Jones Industrials --- 1 month
More comments from Paul Volcker:
Still, the economy is functioning only by “the grace of government intervention” and “we’re in for a long slog” before a recovery takes hold, Volcker said on Bloomberg Television’s “Conversations with Judy Woodruff airing this weekend. Government help will continue, and the administration won’t let any banks fail, he said.
“I’m not here to tell you the economy is going to recover very strongly in the short run,” Volcker said. “There is reason to believe that it should be leveling off, at a low level.”
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