Markets mixed (up) again

Dow slipped 22, advancers over decliners 3-2 & NAZ was up 6. Dow keeps struggling, trying to break into the black for 2009. Banks were little changed on the news that stronger ones will be paying back their TARP loans.


S&P 500 FINANCIALS INDEX

Value 166.13

Change -0.50

% Change -0.3%

The high yield sector was weak. The Alerian MLP Index fell 2, possibly still reacting to an overbought condition. REITs & junk bonds funds were soft. However, oil is having a good day, getting back into the 69s.

CLN09.NYM

...Crude Oil Jul 09

...69.23

... 1.14 .......(1.7%)

The Treasury gave approval to 10 banks to repay $68B in bailout money. The banks have been eager to get out of the program to escape gov restrictions. Banks likely to repay bailout funds include Goldman Sachs (GS), JPMorgan (JPM) & American Express (AXP). This is a sign that some stability has returned to the system. However, the crisis isn't over. Repayments could widen the gap between healthy & weak banks.

•U.S. Lets 10 Banks Repay $68 Billion of TARP Funds, Easing Treasury's Grip


Pimco, which runs the world’s biggest bond fund, said the economic outlook “looks bad” for most central banks. As a result, central banks will refrain from raising interest rates. They said that signs of recovery in economies point to a slower pace of decline rather than recovery. The outlook over the next three to five years is for “weaker global growth and especially weaker growth in the developed countries."

•Pimco Says Economic Outlook `Looks Bad,' Higher Rates Still Some Time Away


The U.S. Supreme Court put a delay on Fiat's attempts to combine with Chrysler. 3 Indiana pension & construction funds want to protect their interests, Justice Ruth Ginsburg delayed going forward on the Fiat's plan. The funds, which hold a small part of Chrysler's debt, have been fighting the sale, claiming that it unfairly favors Chrysler's unsecured stakeholders ahead of secured debtholders like themselves. This issue could be resolved quickly or drag on with the potential to scuttle the deal. If Fiat were to walk away, Chrysler would have little option but to liquidate. These lawsuit can be expected to be repeated at General Motors.

Chrysler Creditors’ Win in Delaying Fiat Sale


Dow continues to bump against the ceiling, trying to break into the black for 2009. Economic reality has gotten the better of it in the last few days.

Dow Jones Industrials --- 2 weeks