Stocks recover

Dow rose 51, advancers were slightly ahead of decliners & NAZ was up 10. Dow remained near break even until the last hour when buyers returned to the markets. Bank of America (BAC), Dow stock, announced it repayed the $45B from TARP that it borrowed earlier this year. The stock was up pennies on the news, but the concept is a plus for bringing buyers back into the markets. Unfortunately for bank stocks, they received little attention today.

S&P 500 FINANCIALS INDEX

Value 192.13

Change 0.68

% Change 0.4%

The Alerian MLP Index was up .73 taking it to the 270s, a new high for 2009. However, the REIT index dropped a fraction. Junk bond funds were generally higher, bringing their yields to the lowest this year. Treasuries were weak as today's auction for the 10-year bond was also rated weak.

Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD





Oil has had a major sell-off in the last month. Gold has only been lower (down 7%) in the last few days.

CLF10.NYM

Crude Oil Jan 10

70.76

.. 1.86 ......(2.6%)

GCZ09.CMX

..Gold Dec 09

..1,127.00

.. 15.80 ......(1.4%)

OIL (ETF) --- 1 month





The Treasury sold $21B of 10 year bonds in a sloppy auction. The bid-to-cover ratio was 2.62X similar to an average of 2.63X at the past 10 auctions. Indirect bidders (including foreign interests) took 34.9% of the notes, the least in 6 months. Buyers are becoming reluctant to commit funds going into the end of the year.

Treasuries Fall After $21 Billion Auction of 10-Year Notes


Spain had the outlook on its debt grade lowered by Standard & Poor’s as its public finances worsen. Their debt was cut from AAA to AA+ in Jan. The outlook today was lowered to “negative” from "stable" and that "reflects the risk of a downgrade within the next 2 years," S&P said in a statement. The yield on the 10-year Spanish gov bond rose 8 basis points to 3.83%, the highest in 2 weeks. This comes one day after Greece’s gov bonds tumbled following a downgrade by Fitch Ratings.

Spain Debt Outlook Cut by S&P as Slump Hurts Deficit


After MMM (MMM), Dividend Aristocrat, yesterday gave a cautious guidance for 2009 & a glum outlook for 2010. But it became the best performing Dow stock on an analyst recommendation. MMM was up 2.63 to a new yearly high & helped the Dow with its first significant up day since Dec 1.

•3M issues unsettling 2010 outlook AP

UPGRADES & DOWNGRADES HISTORY

Date	Research Firm	Action	From	To
Dec9	Citigroup	Upgrade	Hold	Buy

MMM --- 2 months





Dow finished with a decent gain following a glum time in the last week. With the strong finish, maybe more buyers will return tomorrow.

Dow Jones Industrials --- YTD