Dow failed again to reach record 2009 close

Banks tried to take the Dow higher. The biggest gainers (with gains exceeding 50¢) were JPMorgan (JPM), American Express(AXP) & IBM (IBM). But Dow ended gaining only 1 after making another assault to crack thru its 8776 starting point for 2009. Decliners were over advancers 2-1 & NAZ fell 7. Banks were strong in the weak market.


S&P 500 FINANCIALS INDEX

Value 166.63

Change 1.79

% Change 1.1%

The MLP Index dropped 2 to 230. REITs & junk bond funds slipped. Oil was up pennies in indecisive trading.

Gas prices at the pump keep climbing following the rise in crude oil. The national average for gas at the pump was $2.61 yesterday. The graph under the table shows the rise in gas prices in 2009.

	Regular	Mid	Premium	Diesel	85	**E85 MPG/BTU adjusted price
Current Avg.	$2.619	$2.781	$2.880	$2.515	$2.178	$2.867
Yesterday Avg.	$2.613	$2.774	$2.874	$2.507	$2.178	$2.866
Week Ago Avg.	$2.512	$2.668	$2.762	$2.378	$2.085	$2.744
Month Ago Avg.	$2.195	$2.330	$2.414	$2.268	$1.853	$2.439
Year Ago Avg.	$4.005	$4.253	$4.406	$4.762	$3.278	$4.313

12 Month Average for Self-Serve Regular

Source: AAA


Treasuries keep sinking in price as more Treasuries come to market. This week, the Treasury will sell another $65B in notes/bonds. The yield on the 2 year note had been stable, just under 1% (annualized), for months. In the last 2 days the yield shot up over 1.4%, a large drop in prices forced the yield higher. All Treasuries have been weak (bringing higher yields). The 10 year Treasury bond yield rose 2 basis points today to 3.89% on nervousness about massive Treasury borrowings, not to mention worries that the Federal Reserve might increase rates later this year to fight inflation.

•Two-Year Yields Advance to Highest Since November on Record Treasury Sales

10-Year Treasury Yield Index - 1 year





Citigroup (C) received clearance from the Treasury (despite objections from the FDIC) to begin a $58B stock swap which will give the gov a 34% stake in Citi. That's right 34%, so they will be taking orders from Barney Frank! They need this to rebuild common equity base after massive losses last year. Citi was off 4 pennies.

•Citigroup Gains Geithner Backing for Share Conversion as Pandit Bucks Bair


Dow is having difficult time breaking into the black for 2009. All it needs is 13 more points.

Dow Jones Industrials -- YTD