Stocks are mixed, absorbing 2 days of gains

Dow was up 4, decliners ahead of advancers 4-3 & NAZ rose 5. Banks are having a good day, the Financial Index is up almost 1%.


S&P 500 FINANCIALS INDEX

Value 202.62

Change 1.60

% Change 0.8%

The Alerian MLP index is down 0.35, but at its yearly high in the 252s. The Dow Jones REIT Index fell 1. Junk bond funds were flattish, not disturbed by Moody's prediction that bond defaults will rise in the next few months.


Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks





Commodities were strong again, but inching their way up today. For gold, each gain represents a new record price.

CLX09.NYM

...Crude Oil Nov 09

...71.20

... 0.32 .......(0.4%)

GCV09.CMX

...Gold Oct 09

...1,040.70

... 2.10 .......(0.2%)

The yield curve for Treasuries is presented below. The 3 month bill yields essentially zero, a measly 0.06% annualized yield. The 2 year note has a 0.87% annualized yield while the 10 year Treasury bond yields 3.21%. The spread between the 2 year & 10-years is 244 basis points, a very large premium indicating worries about inflation going forward.

Treasury securities

5 Dividend Aristocrats
needing more friends

Below is a list a few of the S&P 500 Dividend Aristocrats (minimum 25 year streak of higher annual divs) which have underperformed the markets this year. They have excellent histories of raising divs, the yields along with future capital gains should be of interest for "value investors."


Exxon Mobil --- 1 year




JNJ --- 1 year




Wal-Mart --- 1 year




McDonald's --- 1 year




Abbott Labs --- 1 year





The markets are absorbing 2 days of big gains. Alcoa (AA) will be the first Dow stock to report earnings (later today). The stock has been rising in anticipation of their smallest loss in a year. That will be viewed as "good earnings" by stock market bulls, but not by those buying gold & Treasury securities.


Alcoa --- 2 weeks




Dow Jones Industrials --- 2 weeks