Markets rally on hopes for refinancing Greek debt

The Dow had a 100 point pop at midday & held that for the balance of the day. Dow rose 105, advancers over decliners 3-1 & NAZ was up an impressive 29. Banks keep slugging it out in the trenches, the Financial Index didn't vary far from break even (at its depressed levels).

S&P 500 FINANCIALS INDEX

Value 187.56

Change 0.41

% Change 0.2%

MLPs has a nice rebound after yesterday's decline, up 4 to the 280s. The REIT index was up 1½, still in the 168s. There was more talk today about a looming crisis in commercial real estate which would back up to problems for many banks. While junk bonds like to see rising stock markets, the funds were mixed today. Treasuries were weak after the Treasury auction (see below). The yield on the 10-year Treasury bond rose 4 basis points to 3.73%, taking it back into the high end of its range in recent weeks.


Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD




10-year Treasury Yield Index - YTD









Oil was up for a 4th day in a row on strong foreign demand. This rally has taken just over 75, still a magic level but not sure whether it is to be a ceiling or floor. Gold charged ahead trying to get back over 1100.

CLH10.NYM

..Crude Oil Mar 10

..75.26

.. 0.74 ......(1.0%)

GCG10.CMX

..Gold Feb 10

..1,093.60

.. 17.80 ......(1.7%)

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The 30-year Treasury bond was auctioned off at a yield of 4.72%, compared with an average forecast yield of 4.69%. The bid-to-cover ratio was 2.36X versus an average of 2.48X at the past 10 auctions. The auction was rate as "weak." Following the auction, the yield on the current bond rose 4 basis points to 4.68% after touching 4.71%, the highest level in a month. Indirect bidders, including foreign central banks, bought 28.5%, substantially below the 40.7% at the comparable auction last month. The average for the past 10 sales was 43.2%. Foreign investors need greater rewards to lock up money for a long term.

Treasuries Decline After $16 Billion Auction of 30-Year Bonds


Toyota (TM) bulls are trying to make a case for buying the stock. But today there were only a handful of takers, the stock rose 24¢ to $73.53. Toyota still faces tumult & trouble.

Toyota bulls say recall makes its stock a bargain - AP


Toyota --- YTD








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While the main focus today was on resolving the Greek debt problems, the fact that DC was closed should be considered an extra plus. Dow had a successful bounce off the 10K floor, but fundamental problems drag on.

Dow Jones Industrials --- YTD