Stocks rise on hopes of more favorable earnings reports

Dow began the week at 8146, now it's 565 higher at 8711. Today it rose 95, advancers ahead of decliners 2-1 & NAZ shot up 22 on hopes of good earnings reports from Google (GOOG) & IBM (IBM), a Dow stock, after the bell. Banks did not respond to the excitement, down pennies. Bank of America (BAC) & General Electric (GE), 2 more Dow stocks, report tomorrow & expectations are muted. Of the 4 losers on the Dow today 2 were were banks (Bank of America & JPMorgan) along with AT&T & Wal-Mart.

S&P 500 FINANCIALS INDEX

Value 164.67

Change -0.40

% Change -0.2%

The Alerian MLP Index is in new high territory not seen since the end of Sep. Today, it was up 3.35 to 236.45. REITs were up modestly & junk bonds were also higher while the VIX was little changed at 25½ (there is less fear in the markets). Treasuries sold off, the 10 year Treasury yield popped up 4 basis points to 3.56%.

Alerian MLP Index --- 2 weeks





Oil has had a nice rally in the last few days. The chart for the ETF below shows oil advanced more than 10% just this week.

CLQ09.NYM

..Crude Oil Aug 09

..62.11

.. 0.57 ......(0.9%)

OIL (ETF) --- 2 weeks




Stocks are running wild as this week is turning into one of the biggest gainers ever. Risk appetite has risen greatly taking the Dow within 90 points of its 2009 high reached last month. In the high yield sector, the interest in greater risk has been largely limited to MLPs which are the stellar performers this year. Tomorrow will be interesting to see if enthusiasm takes Dow to a new yearly high.

Dow Jones Industrials --- YTD