Markets seesawed

Stocks hovered near the break even line, awaiting news on Mon about how the bankruptcy of GM will play out. There was buying at the close giving the Dow a gain of 96, advancers over decliners 2-1 & NAZ was up 22. Banks as leaders also were higher at the close.

S&P 500 FINANCIALS INDEX

Value 164.44

Change 2.77

% Change 1.7%

This has been a stellar week for MLPs, ending with a gain for the index of 4 to the 226s today:

Alerian MLP Index --- 1 week




REITs & junk bonds were mixed to higher. Oil keeps moving up to new interim highs.

CLN09.NYM

..Crude Oil Jul 09

..66.38

.. 1.30 ......(2.0%)

Treasury bond yields tumbled 20 basis points, down to 3.47%, pretty much wiping out the gains in the yield earlier in the week as fears about supply problems eased. However the yield still remains at high levels which must be troubling to the Federal Reserve.

Treasuries Advance for a Second Day as Supply Concern Eases May 29

10-Year Treasury Yield Index - 1 month





GM's union members (74%) agreed to the their revised contract & the bondholders are urged to agree to their new agreement which will give them 25% of the new company. GM stock is 80¢ (up a few pennies on the strong close).

• GM bondholders urged to accept new debt deal- Reuters
• UAW Members Approve GM Concessions- AP
  

After 2 good months, stocks traded sideways in May. Dow was range bound between 8.2-8.6K. MLPs had a great month:

Apr 30....210
May 29...226

Even the laggard Kinder Morgan stock (KMR) was up 1.91 to 45 going into the close (good enough for a 10% gain in May).

Dow Jones Industrials - 1 month