Stocks follow commodities higher

The weaker dollar & higher commodity prices are not standing in the way of a rising stock market. Dow is up 31, advancers 2-1 ahead of decliners & NAZ gained 15. Banks, the market leaders, are also edging higher.

S&P 500 FINANCIALS INDEX

Value 192.42

Change 0.26

% Change 0.1%

High yield securities enjoy higher markets. The MLP index is up almost 1 to 241 & the REIT index is also up 1. Junk bond funds are a little higher while Treasuries were weak. The yield on the 10-year Treasury bond rose 4 basis points to 3.51%. The yield is up 20 basis points from the low last week but far below one month ago when it was pushing 4%. Investors, especially foreign interests, keep buying vast amounts of new debt.

Alerian MLP index --- 1 month




Dow Jones REIT Index --- 1 month




10-Year Treasury Yld Index --- 1 month





Oil is up 1 & wants to head back for the yearly highs at 75. The weak dollar is encouraging commodity buying. The € is pushing $1.46 & the Japanese ¥ is under 92 to the dollar. Gold is hovering at 1K & looks like it wants to go higher.

CLV09.NYM

...Crude Oil Oct 09

...72.04

... 0.94 .......(1.3%)

GCU09.CMX

...Gold Sep 09

...1,000.20

... 2.30 .......(0.2%)

McDonald's (MCD), Dow stock & Dividend Aristocrat, reported sales in established restaurants rose 2.2% globally in Aug, the smallest monthly gain since Feb. A decline in Asia & weaker growth in the U.S. offset strength in Europe. MCD same-store-sales for Aug rose 1.7% in the US & 3.5% in Europe. In the Asia Pacific, Middle East & Africa regions, the figure fell 0.5%. The stock fell 1.13. YTD sales at restaurants open at least 13 months rose 4.2% but total sales fell almost 1%. The chart for MCD shows how established companies are being left behind in this year's rally while speculative ones have had dramatic gains.

• McDonald's comparable-store sales rise in August- AP

McDonald's --- 1 year





Disconnect is the key word for all markets. Stocks, bonds & commodities are all rising, at least one will have to weaken.

Dow Jones Industrials --- 1 month