Dow finally breaks into the black for 2009

Thanks to last minute buying, Dow inched up to a new high for 2009. It closed at 8799, up 28 & 23 higher YTD. Decliners were over advancers 3-2 & NAZ fell 3. Banks continue sideways but higher, a few points above 160.

S&P 500 FINANCIALS INDEX

Value 167.54

Change 1.15

% Change 0.7%

MLPs found buyers after a nice mention on CNBC. The index gained 1 ending a soft week. The REIT index gained 4 while junk bond funds keep edging higher.

Oil-Gas Partnerships Regaining Favor In Volatile Energy Market

Alerian MLP Index --- 2 weeks




Oil backed off, but remains strong. Price at the pump for gas was $2.64 yesterday (from AAA). Iran is counting the votes for the national election today, the turnout was large. While the outcome is uncertain, whoever wins could decide to turn off their oil supply. If this worry plays out, oil has the potential to shoot up to 80 or even 90. Such is Mideast politics influencing oil prices.

CLN09.NYM

..Crude Oil Jul 09

..72.04

.. 0.64 ......(0.9%)

• Oil slips to $71 as investors take profits- AP

The latest thinking is that the Federal Reserve will ease up on purchasing Treasury debt mortgage securities. They were prepared to buy $300B of Treasuries & have already purchased more than ½ that amount. But the steepening of the yield curve (gap between 2 year & 10 year notes for example) has widened. At their next meeting in 2 weeks, they will decide their next actions. Currently the 2 year note yields 1.27% while the 10 year note yield is 3.80%, for a gap of 2.57%.

Treasury Yield Curve

Big Increases in Fed Bond Purchases Unlikely: Report



Dow finally made it into the black for 2009. The NYSE had a computer glitch during the day affecting 242 securities, but that was fixed & trading continued (there & elsewhere). Bulls are happy Dow finally made it over that hurdle.

Dow Jones Industrials --- YTD