IND S&P 500 FINANCIALS INDEX
| Value 157.51 | Change -0.30 | % Change -0.2% |
On a quiet day, the Alerian MLP index is making another push up, shooting for 220. Today it's up 2 into the 218s. REITs & junk bond funds are little changed while the VIX is down slightly on this calm day.
Alerian MLP Index --- 2 weeks
Oil is just sputtering with little change ahead of the long weekend. Gas at the pump averaged 2.39 yesterday, up from 2.33 two days ago.
Treasury yields shot up again dragging down bond prices. They will have their worst week since Jan. The 10 year Treasury bond yield rose 5 basis points to 3.40%. Higher rates on this bond will impact new mortgage loans, just another kick in the head the housing industry, which is trying to recover, does not need. The sharp decline in bond prices has happened despite the Federal Reserve's large bond buying program (hate to think how high yields would be without those purchases). Worries about the Treasury losing its AAA credit rating due to massive new borrowings are behind the decline in bond prices.
•Treasuries Heading for Weekly Loss on Looming Supply, U.S. Credit Concern
The administration is not happy about pay practices at financial companies & is pushing for changes. But Tim Geithner, Treasury Secretary, ruled out setting specific caps on pay & declined to infringe on compensation contracts already agreed to. However changes involving more gov meddling have the potential to bleed thru to the markets.
•Geithner Calls for `Very Substantial' Change in Wall Street Pay Practices
BankUnited failed, the 34th seizure this year & will cost the FDIC almost $5B. FDIC sold the assets to private-equity firms including WL Ross & Co. & Carlyle Group in the largest U.S. bank failure of 2009. Bank problems are not going away any time soon.
BankUnited Shuttered, Assets Sold to Kanas-Led Group
Dow has had a tough time making progress in the last 2 months.
Dow Jones Industrials --- 2 months
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