Markets are wandering again

Dow started the day with a 60 point gain, but slipped back to near beak even. Dow is essentially even, decliners were over advancers 3-2 & NAZ is down a big 18. Banks are weak for a 2nd day:

S&P 500 FINANCIALS INDEX

Value 161.39

Change -2.46

% Change -1.5%

In this quiet market, MLPs, REITs & junk bond funds slipped mildly. Even the hot MLP sector needs a little time for rest:


Alerian MLP Index ---- 2 months





Oil prices rose above 59 a barrel, encouraged by hopes that global recessions may have bottomed. However, there is a continuing lack of demand as U.S. crude stocks are near 19-year highs & expected to climb further. Oil prices were below 35 in Feb on worries about the pace of economic deterioration. The eventual recovery has been dramatic, as with stock markets.

CLM09.NYM

Crude Oil Jun 09

59.08

... 0.58 .......(1.0%)

• Oil above $59 on signs US recession is easing- AP

Home prices fell again in Q1 while first-time buyers keep looking for bargains. The median sales prices of existing homes declined in 134 of 152 metropolitan areas compared with last year. Prices rose in only 18 cities. Sales of foreclosures & distressed properties made up about half of the market. Sales in Nevada, California & Arizona where up sharply where buyers have been able to purchase foreclosures at deep discounts. The median sales price nationwide was $170K, down 13.8% from the prior year. The $8K tax credit for first-time buyers, included in the economic stimulus package, is hoped to boost sales.

•Home Prices in U.S. Fall 14% as Banks Sell Foreclosed Properties, NAR Says



Bank of America (BAC) sold $7.3B of its stake in China Construction Bank after the gov stress test found BAC needed to boost capital by $34B. Buyers were China investment groups. The sale reduced BAC's stake in the world's second-largest bank (by market value) to roughly 10%. BAC fell 42¢. While expected this is viewed as a sign of a weakened bank.

Bank of America Said to Sell $7.3 Billion Bank Stake


Nissan Motor, Japan's No. 3 automaker, reported a $2.4B annual loss, its first yearly loss in a decade. The loss for the current fiscal is after it slashed jobs & production costs. They said "The (economic) crisis is ongoing and market conditions are still volatile." The loss was blamed on -- the U.S. financial crisis, the global slowdown & the strong yen. The fiscal Q4 loss (just ended) was larger than the annual loss because the automaker turned a profit in earlier quarters. Nissan projects a smaller loss of $1.7B for the fiscal current year (ending Mar 2010).

Nissan to Narrow Loss as Job Cuts Offset Demand Slump


Economic news continues dismal. However conditions look to be bottoming out, the big question is how long it will take for markets to begin growing again.