Stocks rise on CIT bailout

It took 6 weeks for Dow to reach another new high for 2009. Dow rose 104, advancers over decliners more than 3-1 & NAZ was up 22. This move followed one of the strongest weeks for the markets in history. Banks had a good day, but not exceptional. Bank of America (BAC) & Citigroup (C) each fell more than 5%.

S&P 500 FINANCIALS INDEX

Value 164.73

Change 1.34

% Change 0.8%

MLPs have reached levels not seen since the Lehman collapse last Sep (shown in the graph below). The Alerian MLP index was up another 3.39 to 241s. REITs had a good day, up 5, but still stuck in the mud, as the index is kicking around the 120-130 trading zone. Junk bond funds were strong while the VIX pulled back in the PM to even (in the low 24s). The 10 year Treasury bond also rallied, taking the yield down 7 basis points to 3.56%. I keep looking at the disconnect between MLPs & REITs, similar high yield securities, and wonder about the sharp differences between their performances this year.

Alerian MLP Index --- 1 year




Dow Jones REIT Index --- YTD




Below are a few today's press releases from MLPs along with an article from the Wall Street Journal posted Sat summarizing the MLP industry along. My posting on MLPs at SeekingAlpha was also just published.

•	PAA		New Issue-Plains All American Pipeline sells $500 mln in debt

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BPL

Buckeye to cut 260 jobs, or 25 pct of its workers

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EEP

Enbridge keeps earnings growth target after deal

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EPD

Getting Paid to Beat the Market: Top Indexes by Dividend Yield

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EPD KMP

Master Limited Partnerships Have Benefits, Risks SeekingAlpha A Stellar Year for MLPs So Far

Oil did not want to be left behind today & is also up nicely from its lows last week.

CLQ09.NYM

..Crude Oil Aug 09

..64.29

.. 0.73 ......(1.2%)

Buyers returned in the PM. Dow is up 1%, the S&P 500 is up 4½% & NAZ is up 21% YTD. Buyers have been seeking tech & high yield securities. In just 6 trading days, Dow was up every day for a total gain of 700. Not sure it deserves this kind of treatment given earnings reports have only been so-so. Maybe extending the proposed health plan deadline for passage, by year end, is encouraging buyers. The CIT bailout was also helpful, especially because it was done in the private sector, not by gov. Now the magic 9K line for the Dow will be an important target for the bulls.

Dow Jones Industrials --- 1 year




Dow Jones REIT Index --- YTD