Higher stocks after Bernanke nominated for 2nd term

The Dow jumped over 9600 (another high for 2009) at the opening on news that Ben Bernanke is being renominated to the Federal Reserve for a 2nd term. Dow is up 72, advancers over decliners 2-1 & NAZ rose 10. Banks liked the news, the Financial Index gained & is trying to top 200.


S&P 500 FINANCIALS INDEX

Value 196.87

Change 2.87

% Change 1.5%

The Alerian MLP Index has been stuck in a rut after soaring over 250 at the start of the month. Today it pulled back 1+ to the 241s. REITs found buyers, their index was up over 1 & junk bond funds were mixed. The yield on the 10 year Treasury bond was even at 3.49% & little changed from its general levels over the last 3 months.


Alerian MLP Index --- 2 weeks





Oil slipped but remains in yearly high territory.

CLV09.NYM

...Crude Oil Oct 09

...73.56

... 0.81 .......(1.1%)

Ben Bernanke was renominated for a 2nd term to run the Federal Reserve. This was hardly controversial, difficult to imagine another candidate doing much more. But markets like to see stability.

•Bernanke Named to Second Term at Fed After Keeping U.S. Out of Depression


The White House budget office forecasted a cumulative $9T (that's T as in trillion) deficit over the next 10 years, $2T (again, that's T as in trillion) more than estimated in May. Moreover, the figures show the public debt doubling over 10 years, reaching three-quarters the size of the entire national economy. Pres Obama's economic adviser, Christina Romer, predicted unemployment could reach 10% this year before beginning a slow decline next year. The idea behind rushing the stimulus package thru without anybody reading or understanding it was to keep unemployment below 8%! That was 6 months ago. Romer said, "This recession was simply worse than the information that we and other forecasters had back in last fall and early this winter." Now these same people are telling us to rush thru a health care plan costing $Ts. Huh???

White House Sees $9 Trillion in Deficits Over Decade


The realization of an even larger deficit which will require the Treasury to sell even more debt is not phasing the markets. China will be required to purchase at least 1/3 of the new debt. More debt helps make investors feel better today, but the long term implications are unfavorable especially for higher inflation.


Dow Jones Industrials --- 2 weeks