Monday, December 28, 2009

Stocks fluctuate but averages reach new 2009 highs

Markets rallied at the close to post modest gains. Dow rose 26, advancers were slightly ahead of decliners & NAZ was up 5. Banks sold off but not badly. The Financial Index can't get far away from the low end of its trading range (190+ area).

S&P 500 FINANCIALS INDEX

Value
195.17
Change
-0.60
% Change
-0.3%


The Alerian MLP Index slipped back 1+, but in the 286s MLP holders aren't complaining. Some MLPs have more than doubled from their lows earlier this year. The REIT index had a small advance, good enough for a new 2009 high. Junk bond funds were off, profit taking after their best year in history. Treasuries continue weak, the yield on the 10-year Treasury bond rose 6 basis points to 3.81%. It may be trying to take out the yearly high of 4%.

Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD




10-Year Treasury Yield Index - YTD





Oil pulled back in the PM but still would like to make an assault on 80. Gold is sloshing around 1100.

CLG10.NYM..Crude Oil Feb 10..78.67 ..Up 0.62
......(0.8%)


GCZ09.CMX..Gold Dec 09..1,103.80 ..Down 0.30
......(0.0%)




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S&P 500 Dividend Aristocrats are still a good source for investment ideas. Despite the large gains for stock markets in 2009, some stocks have been left behind & offer good yields. Consistent dividend increases, especially getting thru 2009, is an impressive credential for any stock. Below are 3 from the list which are not as well known as Coca Cola (KO) & McDonald's (MCD) but are offered for consideration, 2010 can not be expected to continue the enormous gains of 2009.


S&P 500 Dividend Aristocrats

Automatic Data Processing (ADP)_$43_$1.36
Clorox (CLX)____________________$62_$2.00
Emerson Electric (EMR)__________$43_$1.34


Automatic Data Processing --- YTD




Clorox --- YTD




Emerson Electric --- YTD









Little was decided on a very slow day (NYSE floor volume was only .7B). There was a Treasury auction, it went well. The balance of the week should not have major changes as the successful are away enjoying profits & bonuses.

Dow Jones Industrials --- YTD

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