Unclear Greek bond bailout leaves markets flat

Dow just can't get away from the 10K level. Dow fell 1, decliners 4-3 ahead of advancers & NAZ was off 2. Banks were weak with the Financial Index drifting near its 6 month low. To illustrate how poorly banks have done, the 6 month chart for JP Morgan, Dow stock & most highly regarded big bank, is shown. It's not pretty!


S&P 500 FINANCIALS INDEX

Value 186.08

Change -1.07

% Change -0.6%

JP Morgan --- 6 months




The Alerian MLP Index is flattish, up pennies in the 276s after yesterday's decline. The REIT index is down 1+ flirting with an interim low. Junk bond funds are doing little. The yield on the 10-year Treasury bond rose 3 basis points prior to the PM auction of 30 year bonds. The markets are edgy about this auction after yesterday's for 10-year bonds was only rated as so-so.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks








Commodity traders were snowed in around the world. There is little change in oil & gold.

CLH10.NYM

Crude Oil Mar 10

......74.43

... 0.09 .......(0.1%)

GCG10.CMX

...Gold Feb 10

...1,077.40

... 1.60 .......(0.2%)

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Photo: Bloomberg



European leaders (seen above) struck a deal to provide financial aid to Greece, in an unprecedented move to stave off a broader crisis in the 16-nation bloc that shares the Euro Zone currency. However, details of the package are not expected to be finalized until early next week. The EU leaders suggested it could include some form of loans to Greece to help it service debt & avoid a damaging default. EU leaders also urged Athens to make deep cuts to its budget deficit to restore confidence. Germany & France are expected to take the lead in providing support. Greek bonds, which have plunged since Dec, extended a 3-day rally on the news.

•EU Demands Greece Fix Budget Deficit, Stops Short of Concrete Aid Measures


Greek bond interest rates - 1 year

Photo: Bloomberg


The number seeking unemployment benefits fell more than expected last week to the lowest total in a month. The Labor Dept reported first-time claims for unemployment insurance dropped 43K to 440K. The decline largely reflects the end of administrative backlogs in California & other states that had elevated claims in the previous 3 weeks (claims that had built up over the Christmas holidays). The 4-week average fell 1K to 468K, the first drop after 3 weeks of increases. Claims are now close to the low levels they reached in late Dec, when claims dropped to their lowest point in nearly 18 months. Nearly 5.7M were receiving extended benefits, down from 5.9M in the prior week. Mixed data as high unemployment drones on.

•Jobless Claims in U.S. Decline More Than Forecast as Recovery Cuts Firings


Initial jobless claims - 1 year









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The Greek bailout should have brought more enthusiasm to the markets, but the lack of details is keeping buyers away. I would think DC closing down again after the snowstorm should be encouraging, but no so. Jobless claims data was uneven as usual. The number of claims has been falling but employers are not rehiring, keeping the unemployment rate at unacceptable levels. Congress is coming up with another jobs program, but that remains fuzzy. Dow keeps lumbering along near 10K, can't decide which way to go.


Dow Jones Industrials --- 2 weeks