S&P 500 FINANCIALS INDEX
| Value 205.96 | Change 0.87 | % Change 0.4% |
On a quiet day, the MLP index is up pocket change in the 294s while the REIT rose 1+. Junk bond funds remain hot, finding plenty of buyers causing their yields to decline further. Treasuries are also doing little, the yield on the 10-year Treasury bond was up 1 basis point to 3.82%.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
China oil imports rose 14% last year to a record high in Dec, part of a 56% surge in overall imports last month. Their cold winter is keeping demand high. As a result traders brushed off the disappointing US jobless report, taking oil to $83. Gold also rose helped by a weaker dollar. Gold has been climbing 50+ off the 1100 floor. As a reminder, 1200+ was it previous (record) high.
| CLG10.NYM | ...Crude Oil Feb 10 | ...82.99 | ... 0.24 .......(0.3%) |
| GCF10.CMX | ...Gold Jan 10 | ...1,153.60 | ... 15.40 .......(1.4%) |
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photo: Bloomberg
Analysts expect earnings for financial companies to rise 120% in Q4 & forecast income should triple in 2010. Based on these estimates, banks are selling at a 15% discount to the S&P 500 index. However after having been burned badly in the last 2 years, money managers hesitate about putting more money into bank stocks. Financial companies are the least-favored equity group.
•Bank Profits Tripling Leaves Stocks Cheapest With 15% Discount to S&P 500
S&P Financial Index - 1 year
Not much happening as traders await Alcoa's (AA), Dow stock, to kick off earnings season. AA earnings will give a glimpse into the strength of the economic recovery.
Dow Jones Industrials --- 2 weeks
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