Markets creep higher ahead of Alcoa earnings

After rising in the PM, Dow closed up 45 to a new yearly high, advancers ahead of decliners 3-2 but NAZ was off 4. All this on very light volume, under 1B shares on NYSE floor. Banks were flat, at least the index is above the low end of its trading range.

S&P 500 FINANCIALS INDEX

Value 205.15

Change 0.06

% Change 0.0%

The MLP index was up a fraction in the 294s while the REIT remained up 1+, aiming to take out its 12 month high just 7 points away. Junk bond funds continued strong. The 10 year Treasury bond was flattish with a 3.83% yield. The Treasury had a TIPS (inflation protected debt) auction today which went well with indirect bidders (including foreign central banks) buying a big chunk. Below is the yield on the 90 day Treasury bill yielding 0.02% (annualized) or essentially zero.

3-Month

0.000

04/08/2010

0.02 / .02

-0.018 / -.018

Alerian MLP Index --- 2 months




Dow Jones REIT Index --- 2 months









Oil lost of its friends in the PM, dipping below 83. But gold remained strong with gold bulls eying its 1200 record high once again.

CLG10.NYM

..Crude Oil Feb 10

..82.29

.. 0.46 ......(0.6%)

GCF10.CMX

..Gold Jan 10

..1,150.70

.. 12.50 ......(1.1%)

Photo: Bloomberg



Caterpillar (CAT), Dow stock, rose $3.79 in response to China reporting a surge in Dec imports. CAT is a net exporter to China, with total exports of $16B in 2008. The stock is triple its lows one year ago.

Caterpillar Climbs Most in 2 Months as China Imports Surge


Caterpillar --- 1 year





JP Morgan, Dow stock, is of interest with talk they will double the div, a nickel per qtr, to show that they are emerging from the financial crisis. If that happens, it will hardly make them a yield play but will help quiet stockholders when they read about big bonuses paid to top execs. The stock was down 15¢, having moved very little in recent months.

JP Morgan --- 1 year










Markets were more relaxed going into the close, awaiting the earnings release from Alcoa (AA), another Dow stock. The thinking is AA will benefit from higher commodity prices, returning them to profitability. The stock closed up 43¢. A strong report from AA should give the markets a big lift tomorrow. If Dow has a big gain, its next stop should be 11K. NAZ however has been doing just fine, not needing any outside help.


Dow Jones Industrials --- 2 months



Nasdaq --- 2 months