Stock gains pared in last hour

Stocks couldn't hold their AM gains. Dow had been up over 200, but had to settle for plus 83 which took it to a new 2009 high, advancers ahead of decliners 4-1 & NAZ gained 16 (failing to hold 2K). The massive amount of new gov debt is starting to be felt in the stock & bond markets.

Banks did well with the Financial Index closing just 2 below the peak reached in May.

S&P 500 FINANCIALS INDEX

Value 173.36

Change 4.48

% Change 2.7%

The Alerian MLP Index rose 2 to the 245s, keeping it close its recent 250 high. The Dow Jones REIT Index was up an impressive 5 to 141, but remains down 10 YTD. Junk bond funds continue strong at new 2009 highs. The yield on the 10 year Treasury bond dropped 2 basis points to 3.64%. Bond traders are worried about the huge supply of debt being marketed. Tomorrow, the Treasury will borrow another $28B of 7 year notes. There are early indications that interest by foreign central banks for this debt may be waning.

Alerian MLP Index --- YTD





Oil recovered most of the prior day's losses on a more favorable assessment about the economy following the unemployment report & an up stock market. At 67, it's only it's 6 below its recent high.

CLU09.NYM

..Crude Oil Sep 09

..66.61

.. 3.26 ......(5.15%)

• Oil jumps to near $67 a barrel- Reuters

While stocks gained, they pulled back in the last hour. On balance, buyers like the earnings reports. Stocks are up an dazzling 13% since Goldman Sachs (GS) started the season with an excellent report. Sorry, this report is a little shorter because of a personal a problem diverting some of my attention.

Dow Jones Industrials --- YTD