Markets drift lower

Dow was in the red all day, finishing down 32. Decliners were only 20% over advancers & NAZ slipped 8, bringing it back under the important 2K level. The S&P 500 was off 3, but held above the 1K level. Banks settled back in the PM along with the rest of the market.

S&P 500 FINANCIALS INDEX

Value 191.88

Change -1.26

% Change -0.7%

S5FINL:IND





The MLP Index coming off one of its rare down weeks since Mar was up pennies in the 243s while the Dow Jones REIT Index gave up 4 after its recent run. Junk bonds funds were mixed to higher. Treasuries finally found buyers, the yield on the 10-year Treasury bond fell 8 basis points to 3.77%.

Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD





Oil pulled back but still in the 70s.

CLU09.NYM

..Crude Oil Sep 09

..70.86

.. 0.07 ......(0.1%)

Treasury 10-year notes rose for the first time in 6 days. Yields at the highest levels in 2 months lured buyers before another record sale of $75B of notes & bonds this week. Ten-year yields surged 37 basis points last week, the most since Mar 2003, based on economic data which boosted confidence that the U.S. economy is recovering.

10-Year Yield Treasury Index - YTD





The Federal Reserve will be holding its FOMC meeting this week. It's not getting a lot of attention with many being away & no change expected in holding their interest rate near zero. However, there is always the chance they might give clues about how they expect to unwind their positions which were taken to help the economy. Help is a code word for selling the massive amount of gov debt they own, by last count over $2B. While down, Dow is just inches from its 2009 highs.

Dow Jones Industrials --- YTD