S&P 500 FINANCIALS INDEX
| Value 196.68 | Change 3.37 | % Change 1.7% |
MLPs picked up buying in the PM, the index gained .94 to the 291s. The Dow Jones REIT Index rose 1.79 to the 180s as buyers were encouraged by the prospects for General Growth to emerge from bankruptcy (see below). Junk bond funds ticked up. Treasuries were mixed, the yield on the 10-year Treasury bond was up a smidgen to almost 3.70%. Today's Treasury auction for a record tying $42B of 5 year notes went well with one more auction coming tomorrow under this week's program.
Alerian MLP Index --- 3 months
Dow Jones REIT Index --- 3 months
Oil managed a rally, joining with stocks, taking it back near 80. But gold fell, slipping below 1100. It could be gold is getting ready to follow thru on the prediction that Mar is traditionally a bad month.
| CLJ10.NYM | ..Crude Oil Apr 10 | ..79.88 | .. 1.02 ......(1.3%) |
| Gold | ...1,095.40 | ___-7.80___ | -0.71 |
Freddie Mac after losing $B & $B warned of a "potential large wave of foreclosures" still to come. Uh, Oh!! Freddie & Fannie have already cost taxpayers $111B which could rise to $200B by next year. This is just one more gloomy indicator for the troubled housing sector.
General Growth Properties is proposing to split into 2 companies to escape from Chapter II. They claim shareholders will get $10 stock in the first company & $5 in the 2nd. Such a plan remains iffy but brings to light to underlying value of REITs. They own property & buildings which should, at least, retain value even in the worst of times (like now).
General Growth Plans Split, Brookfield to Take Stake
The Senate passed a $15B jobs bill (small by DC standards). This has to be blended with a $150 bill passed by the House. The Senate bill would give employers a tax benefit of a one year holiday from paying Social Security taxes for each unemployed worker who is hired.
Senate Passes $15 Billion Job Bill, Sends It to House
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Toyota tried to explain that they are sorry about the problems, hoping they won't happen again. Stockholders liked what they heard, the stock advanced a very big 2.78! The Bernanke rally lasted. While giving testimony, it was apparent that everybody agreed high unemployment is at the root of the recession & lowering that rate is key to any economic recovery. A new unemployment bill may prove to be a step forward.
Dow Jones Industrials --- 3 months
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