Mixed markets following lower foreign markets

Dow rose 44, decliners over advancers 2-1 while NAZ dropped 9. The big gainers in the Dow were American Express (AXP) up 1+ along with Merck (MRK) & Procter & Gamble (PG) up over 80¢ each. Oils & some banks were the big losers today. Dow rose during the day finishing at the its highs.

S&P 500 FINANCIALS INDEX

Value 154.77

Change 1.22

% Change 0.8%

REITs led high yields today, the index gained 4+. The Alerian MLP Index fell 1 to the 221s & junk bond funds were weak. The VIX popped 2, bringing it near 30.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks




Kinder Morgan (KMP) issued a statement about their recent selling of units. It went well. They explain that they have already sold about 75% of the $1B budgeted for in 2009.

Kinder Morgan Energy Partners Announces Closing of Underwriters Overallotment Option


Oil led commodities lower on doubts about an economic rebound. Almost 1 month ago it was pushing 72, now it can't find any friends. Most other principal commodities have followed its lead.

CLQ09.NYM

Crude Oil ..Aug 09

..64.05

.. 1.58 ......(2.4%)

Today the Treasury had an auction for 10-year TIPS which drew a yield of 1.92%, a little better than the 1.933% average forecast. Indirect bidders (foreign buyers) accounted for almost ½ the purchases. This is a good sign over the short term, but longer term it means the US owes foreigners even more. There will be 3 more Treasury auctions this week. The 2 year Treasury note rose, bringing its yield down 5 basis points while the 10 year bond was essentially even with a yield of 3.51%.

Two-Year Treasuries Rise as Fed Buys, TIPS Sale Garners Demand


Services for Michael Jackson will be shown on 80 screens tomorrow. Not mentioned is the added cost to the city for police protection. Many of his friends are millionaires, but none are contributing to pay for added expenses. That money will come from a special fund which may involve issuing IOU checks since California is broke.

Jackson Memorial Service to Be Shown in as Many as 80 Theaters


Earnings season begins on Wed after the market close, when Alcoa (AA) will be the first Dow stock to report earnings. Expectations are not high. Analysts have an average estimate for EPS of -34¢ loss vs 66¢ last year. Stocks got off to a rocky start today after a sell-off around the globe, but they ended at the highs only slightly lower on quiet volume (less than 1B shares were traded on the floor of the NYSE).

Dow Jones Industrials --- 2 weeks