Profit taking day

Stocks sold off at the opening & remained underwater for most of the day. A modest PM rally didn't have enough strength to take them into the black. Dow lost 39, decliners ahead of advancers 4-3 & NAZ was off 18. Banks have been red hot since earnings season began a month ago. The Financial Index has risen an amazing 40 or 28%. Citigroup (C), up 33¢ to 3.58 just today, is an excellent example, up 1 in a month. Not too bad shabby for a low priced stock!

S&P 500 FINANCIALS INDEX

Value 189.37

Change 6.11

% Change 3.3%

S5FINL:IND




Citigroup --- 1 month





The Alerian MLP Iindex dropped 4 to the 245s, but tough to tell what it really means with ex-distributions. After starting the week at 248, it's lower but distributions earned will soften the effect of the decline. REITs are soaring this week, the Dow Jones REIT Index shot up another 6 today taking it to 157, believe it or not, a new 2009 high. They have been left behind in the scramble to buy high yield securities. Maybe this is catch up time. Junk bond funds are continuing to do well. Once again, Treasuries sold off so investors can buy riskier securities. The yield on the 10 year Treasury bond rose another 9 basis points to 3.76% taking it nearer to the 4% high reached 2 months ago. Oil was up pennies but still in the 71s, close to its highs for 2009.

Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD




10-Year Index Treasury Yld Index - YTD





This is the 2nd most important selling season at retail, Back-to-School. Early indications are that's it's going slowly. Retail sales for Jul should be out by next week (which will include the early portion of this season).

• Signs show slow start on back-to-school sales- AP

While lower, averages are still hovering near their 2009 highs. S&P 500 closed at 1002, keeping it above the magical 1K line. But NAZ fell, slipping below 2K. The jobs report on Fri will probably be the key event for the balance of the week. Today's job report makes predicting those numbers fuzzier.


Dow Jones Industrials --- YTD