Higher markets on speculation Greece will receive a bailout

Dow started strong & remained near 10,100 for the rest of the day. Dow closed up 150 (there was a little profit taking in the last hour) to 10,058, advancers ahead of decliners 3-1 & NAZ advanced 24. Banks had a good but not spectacular day as the Financial Index continues close to its 6 month low.


S&P 500 FINANCIALS INDEX

Value 185.62

Change 2.02

% Change 1.1%

The Alerian MLP Index shot up to 280 on the opening & remained there to close up 2½. The REIT index was down pennies, limping along at its low levels. Higher stock prices helped boost junk bond prices. The yield on the 10-year Tresury bond rose 4 basis points to 3.63%. The Treasury auctioned off a record tying $40B in 3 year notes which went fairly well. Indirect bidders, including foreign central banks, bought 51% of the issue, a little under the levels at recent auctions. Last year they accounted for 60+% many times. Tomorrow there will be another auction, this one for $25B in new 10 year bonds.

Alerian MLP Index --- 3 months




Dow Jones REIT Index --- 3 months









Nothing like cold weather & lots of snow to bring out oil buyers. Of course, higher stock markets are always a plus. Gold also had a good day

CLH10.NYM

..Crude Oil Mar 10

..73.81

.. 1.92 ......(2.7%)

GCG10.CMX

..Gold Feb 10

..1,079.70

.. 14.00 ......(1.3%)

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Hopes for Germany to provide aid to Greece encouraged stock buyers. With all the major European countries in the Euro Zone, each one has an interest in helping the next one. But this remains a financial crisis which will need a lot of cooperation to be resolved. Germany wants fiscal reforms before helping, it's not a done deal yet. In addition, other countries with similar financial problems, such as Portugal & Spain, are watching closely.

•Greek Aid Package Considered by EU as Deficit Threatens Confidence in Euro






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This relief rally made the bulls feel better, but fundamental conditions have not changed appreciably. The Euro Zone has countries with significant financial problems & they are not organized to help each other on a cooperative basis. So they will have to muddle thru each financial mess. At Toyota, things go from to to worse & then even uglier. They are dealing with this multi $B crisis as best as could be hoped for, but it's shaking the company to the core. However, the stock found buyers today rising 1.75. While Coca Cola (KO) & McDonald's (MCD) had good reports bringing higher stock prices, they were a reminder that US sales for these basic products are sluggish. That's not supposed to happen when a recovery is going well. Dow is drifting at 4 month lows.

Dow Jones Industrials --- 3 months