Stocks surge on Intel earnings

Dow rose 165, advancers 6-1 over decliners & NAZ is up 47. The Financial Index has had a nice pop. Since last Wed, it's up sharply from sub 150.

S&P 500 FINANCIALS INDEX

Value 162.40

Change 3.84

% Change 2.4%

The Alerian MLP Index is 3+ higher bringing it close to its 2009 high. But the REIT is up only 1, stuck in the trenches (down about 17% YTD). Junk bonds are strong while the VIX dipped below 25, another yearly low (although still in high territory by traditional standards). Treasuries are being sold again to support the stock rally. The 10 year Treasury yield is up another 9 basis points to 3.54% (& up from sub 3.30% at the start of the week).

Alerian MLP Index --- 2 months




Dow Jones REIT Index --- 2 months




10-Year Treasury Yield Index - 2 weeks




Buyers are bidding up everything, taking oil above the magic 60 line.

CLQ09.NYM

...Crude Oil Aug 09

...60.69

... 1.17 .......(2.0%)

Intel (INTC), Dow stock, makes the microprocessor for more than ¾ of the world's PCs. The company posted Q2 sales substantially stronger than Wall Street expected & its outlook suggests there's more good news to come despite Dell's (DELL), #2 PC maker, warning that its sales to businesses remain weak. Excluding a $1.4B EU fine (being appealed), INTC earned $1B, or 18¢ per share, in Q2, more than double the average estimate. However, sales fell 15% to $8B but easily topped Wall Street's $7.3B average forecast. Intel offered a Q3 sales outlook of $8.5B, plus or minus $.4B, which is better than the $7.8B analysts' estimate. INTC is up 1, but has had a tough go of it during the recession.

Intel Jumps After Asian Consumers Spur PC Comeback


Intel ---- 2 years





The drama on CIT plays on. They have $1B in debt which has to be refinanced next month. The question becomes how it will get done? The Treasury does not want to use TARP funds & FDIC keeps saying no. CIT finances thousands of small businesses, an unusually large amount of interest is riding on their survival.

•CIT Presses U.S. Regulators for Aid as Fed Considers Allowing Asset Shift


Dow continues in the sideways trading range, but may have on its eyes on the 8.8K recent high for 2009. Volume continues weak, small amounts of buying or selling can cause large price swings.

Dow Jones Industrials --- 3 months