Tuesday, January 19, 2010

Markets advance despite Citigrroup's $7B loss

Tech companies were higher on earnings optimism & health companies rallied on speculation the Republican candidate will win the Massachusetts Senate seat. Dow was up 76 to another 16 month high, advancers over decliners 5-2 & NAZ gined 24. Banks are doing well after Citigroup's (C) loss which had been discounted.


% Change

High yielders are hot again. The Alerian MLP Index is up 3.62 to the 297s, last seen over 2 years ago. The Dow Jones REIT Index is up 3 to 184, it may want to go thru the 192 high reached last month. Junk bond funds are higher. Treasuries were weak, the yield on the 10-year Treasury bond rose 4 basis points to 3.71%.

Alerian MLP Index --- 2 weeks

Dow Jones REIT Index --- 2 weeks

Oil & Gold were little changed, there was no exciting news.

CLG10.NYM...Crude Oil Feb 10...77.73 ...Down 0.27

GCF10.CMX...Gold Jan 10...1,130.50 ...Up 0.40

Gold, Silver, Platinum...W.T.F.?! Click Here

Citi posted a Q4 loss of $7.6B after taking charges linked to repay gov bailout funds, results were in line with expectations. Citi's losses from bad loans in Q4 declined from Q3, the loss amounted to 33¢ a share which compares with a loss $3.40 a share last year. Loan losses were $7B in Q4, up 16% from $6B a year ago but down from $8B in Q3. They have more work to do, Q4 was not considered an impressive quarter. Investors are still worried about further credit losses & the impact of sweeping changes to banking regulation. The gov owns 7.7B shares, worth about $26B. The stock rose 3¢ to $3.45.

Citigroup Posts $7.6 Billion Fourth-Quarter Loss on Costs to Repay Bailout

Citigroup --- 2 years

Buyers have taken control of the markets, not deterred by Citi's loss. There will be many earnings reports this week, including Kinder Morgan (KMP)) tomorrow evening. More distribution increases can be expected from MLPs.

Dow Jones Industrials --- 2 weeks

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