Encouraging earnings lifts stocks

Dow gained 98, advancers over decliners 3-1 & NAZ was up 19. Markets liked earnings reports & a buyout proposal for a real estate company in bankruptcy. Banks joined in the advance, but the Financial Index is still stuck in its low level trench.


S&P 500 FINANCIALS INDEX

Value 188.59

Change 1.57

% Change 0.8%

Higher stock markets brought buyers to MLPs. Their index rose 4 to the 287s as it tries to get back to 290. The Dow Jones REIT Index was up 2, helped by the buyout of General Growth (see below). Junk bond funds were a little higher. The yield on the 10-year Treasury bond rose 2 basis points to 3.71%.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks







Oil is having a great day crashing thru the 75 ceiling with conviction. Gold is also having a good day, getting above the 1100 level.

CLH10.NYM

...Crude Oil Mar 10

...76.58

... 2.45 .......(3.3%)

Gold

1,118.20

+28.20

+2.6%

Gold Super Cycle Link! Click Here



Kraft Foods, Dow stock, reported Q4 profits surged to 48¢ per share from 12¢ per share last year. Gains came from strength in developing markets & continued benefits from its restructuring plan to focus more on its money-making products. Profits beat expectations of 45¢. But sales rose only 3% to $11B (due to a weaker dollar) & below analysts' estimate of $11.07B. KFC continued to see falling sales in the US because shoppers are trading down to less expensive, store-label brands.The food maker, which is buying British candy maker Cadbury, said it expects long-term earnings growth at the high end of its previous guidance. KFT fell 71¢.

Kraft Profit Rises as Sales Gain in Emerging Markets


Kraft Foods --- 1 year






Merck (MRK), a Dow stock & Dividend Aristocrat, posted Q4 profits sharply higher than last year. Excluding those gains from its recent acquisition of Schering-Plough in Nov, net income matched expectations. MRK earned $2.35 a share in Q4 compared to 78¢ last year. Revenue jumped to $10.1B (including a month’s worth of sales from Schering). Factoring out the acquisition, MRK earned 79¢ a share, in-line with expectations. As part of its deal with Schering, MRK said it will cut its workforce by 15% (15K) by the end of 2012, & will eliminate more than 2K spots that are vacant. This is good for the company but will also add to unemployment rolls. MRK rose 72¢.

Merck Profit Rises More Than Analysts Estimated


Merck --- 1 year





Simon Property (SPG), the nation's largest shopping mall owner, made a $10B hostile bid to acquire its ailing rival, General Growth Properties, & would allow General Growth, the #2 owner of shopping centers, to emerge from Chapter 11 bankruptcy. The offer would repay $7B to unsecured creditors & $3B to its shareholders. Stockholders would get $6 a share in cash & $3 a share in other assets. SPG has a good track record of taking over troubled real estate assets, the stock rose 1.70.

•Simon Property Group Makes $10 Billion Offer for General Growth Properties


Simon Property --- 1 year







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Markets are having a very good day. But problems remain. Among the many, Europe is trying to figure out how to help Greece & then deal with other Mediterranean countries who are need help.

Dow Jones Industrials --- 2 weeks