S&P 500 FINANCIALS INDEX
| Value 193.31 | Change -3.51 | % Change -1.8% |
The Alerian MLP Index continued for the balance of the day, down 1½ to the 290s. The REIT index also fell 1½ while junk bond funds rose. The Treasury had a record tying $44B auction of 2 year notes. The yield was 0.895% (annualized) with a very good bid-to-cover ratio of 3.33X. Almost 54% were purchased by indirect bidders (including foreign central banks), up from 44% at the last 10 auctions. Demand was helped by speculation that the Greek debt problems will widen in Europe & the gloomy outlook for the economy after the consumer confidence report. Other Treasuries surged. The yield on the 10-year Treasury bond dropped a very large 11 basis points to 3.69%.
Alerian MLP Index --- YTD
Dow Jones REIT Index --- YTD
Oil couldn't hold onto 80, settling back to its 75-80 trading range. Gold continues to hold above 1100. There was a report on Bloomberg TV about Mar being the worst month of the year for gold. An analyst interviewed was looking for a pullback in Mar to around 1100.
| CLJ10.NYM | ..Crude Oil Apr 10 | ..78.94 | .. 1.37 ......(1.7%) |
| Gold | ___1,104.60 | ___-8.50 | ___-0.8% |
Gold Super Cycle Link! Click Here
The number of problem banks is growing, jumping to 702 in Q4 (the most since the height of the savings-and-loan crisis in the early 1990s). Big banks are recovering, many of them with federal bailout money. But problems with small & mid-sized institutions will likely persist in coming years. Already in 2010, 20 banks have failed. Regional banks are especially vulnerable to losses on loans for commercial real estate, like stores & office complexes. These loans make up a disproportionate share of their business. Those losses are growing as buildings sit vacant & builders default on loans. So far REIT's have gotten thru the financial crisis with only limited financial damage.
Kimberly-Clark (KMB), raised the quarterly div 10% to 66¢ per share. KMB, a Dividend Aristocrat, the maker of Kleenex, Huggies & Scott paper towels, reported last month that its 4th qtr profit rose 17% & finished FY2009 with EPS of $4.52, an 11% increase. It expects to earn between $4.80-$5.00 per share in 2010. The stock rose 49¢, yielding 4.4%.
Kimberly-Clark raises dividend by 10 percentAP
Kimberly-Clark --- YTD
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The drop in consumer confidence was too much for stocks to overcome. Greek debt problems with the threat of spreading to other countries in Europe didn't help, the € sank to $1.35. A dreary assessment about more problem banks added to market woes. Dow looks like it wants to get back to 9½K, but failed. Its next stop may be testing the lows from early Feb. NAZ which had been stronger last year is also down YTD from increased worries about how the economic recovery will go forward.
Dow Jones Industrials --- YTD
Nasdaq --- YTD
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