Dow & S&P had a good day

Dow started higher & remain flattish at around +50 for most of the day in another day of indecisive trading. Dow rose 58, advancers ahead of decliners 4-3 & NAZ was even. Banks had a good day after a dreary start to the week (still down 8 from its yearly high at the start of the week).


S&P 500 FINANCIALS INDEX

Value 159.71

Change 3.87

% Change 2.5%

The high yield sector was a little higher, nothing major. MLPs rebounded after the index fell 15 in the last week, but picked up 1 today. REITs index was up 1 while junk bond funds were mixed.

Alerian MLP Index --- 2 weeks




Bonds had a bad sell-off, dropping 1+ taking the yield up 18 basis points to 3.84% on fears (for bond owners) the recession may be ending. The one week chart shows the dramatic increase in the Treasury yield today! Of course, this will lead to higher mortgages rates, something the fragile housing industry does not need.

•Treasuries Drop on Speculation Recession Ending, Record $104 Billion Sale


10-Year Treasury Yield Index -- 1 week





Crude oil was up pennies, in the 71s near its yearly high.

CLN09.NYM

..Crude Oil Jul 09

..71.38

.. 0.35 ......(0.5%)

Congress has a lot to do these days. They were supposed grill the Treasury Sec in the PM, but had to cancel because of votes they had to make & general business. That's how it goes when they are throwing around trillions like it is small change. The $787B stimulus package had to be rushed thru before anybody could read & assess it, it was that urgent! Now the unemployment rate has gone higher then they projected (the main reason for rushing), only a small % has been spent & dead people are already receiving checks from the stimulus package. The proposed financial regulations are getting a lot of attention, which they deserve as discussed in the article below. Meanwhile, Dow sloshes around mid 8K.

• Obama's plan for Fed worries some in Congress- AP

Dow Jones Industrials --- YTD