Markets gain on hopes about Mass Senate race

Stocks had another excellent day, reaching new 15 month highs. Dow advanced 115 taking it over 10.7K, advancers ahead of decliners 3-1 & NAZ was up 32 to an interim high. Banks did well even though Citi (C) reported another big loss. The Financial Index is putting more distance between it & the important 200 base line.

Value 203.64

Change 2.29

% Change 1.1%

MLPs were on fire. The Alerian MLP Index shot up 5.99 to the 299s, a 2+ year high. Some MLPs have more than doubled off their lows. Other high yielders also did well. The Dow Jones REIT Index was up 4+, it needs 6 to reach a new high since Oct 2008. Junk bond funds also gained. But Treasuries sold off, the yield on the 10-year Treasury bond rose 3 basis points to 3.71%.


Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD









Buyers returned in the PM for oil & gold. Oil wants to make 80 a floor while gold would like to return to 1150 to build on that as a base.

CLG10.NYM

..Crude Oil Feb 10

..79.02

.. 1.01 ......(1.3%)

GCF10.CMX

..Gold Jan 10

..1,138.00

.. 7.90 ......(0.7%)

Williams Partners (WPZ) plans to contribute its gas pipeline & domestic midstream businesses plus its limited- and general-partner interests in Williams Pipeline Partners LP (WMZ) into Williams Partners. In short this is called restructuring, valued at $12B which will form the largest MLP. This transaction is expected to be immediately accretive to Williams Partners' distributable cash flow per LP unit & is expected to have no material effect on Williams' previous 2009-11 guidance for recurring earnings or cash flows. WPZ is expected to increase the Q1 distribution from a $2.54 annual rate to $2.63. The units rose $5.60 to $36.39 on the good news, the other Williams companies also gained. MLPs were higher on hopes for similar kind of deals.

Williams, Williams Partners Announce Strategic Restructuring to Drive Growth, ValuePR Newswire

Williams Partners --- 2 years





Eli Lilly (LLY), a Dividend Aristocrat with a 5½% yield, rose with the other drug & health care stocks on hopes the Republican will win the Mass Senate seat which could serve to scuttle the heath care bill. Its chart shows LLY has been left behind in last year's market advance. LLY was up $1.59 to $37.41, other health related stocks also had good gains.

Eli Lilly --- 1 year









Buyers returned in strength giving stocks a very good day. But earnings reports have just begun & Citi's results are not encouraging especially for the bank reports. Bank of America (BAC), Dow stock, is expected to lose money in Q4. BAC was up 6¢ to 16.32. This could be a rocky week.

Dow Jones Industrials --- YTD