Corporate buyouts fail to lift stocks

Stock markets tried but couldn't get a head of steam going for higher markets. Dow hugged the break-even line all day but ended with a loss of 13, advancers ahead of decliners 3-2 & NAZ gained 5 (good enough for a new 18 month high). Banks kept their positive momentum going. The Financial Index eked out a gain, but in a limited trading range ended closer to its low than the high.

S&P 500 FINANCIALS INDEX

Value 205.04

Change 0.31

% Change 0.2%

JPMorgan, the quality Dow bank stock, has had a nice run in the last month but failed to take out its previous high. This mirrors the chart for the Financial Index above.

JP Morgan --- YTD





The MLP & REIT indices were each trying to take out their prior interim highs. And they came sooo close. The Alerian MLP Index rose 1.30 to virtually 300, sooo close. The Dow Jones REIT Index gained 2.07 to virtually 190, again sooo close. Junk bond funds were higher while Treasuries slipped. The yield on the 10-year Treasury bond rose 3 basis points to 3.71%.


Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD

Oil had slipped but was able to pull into the black. Gold had an off day but still has its former highs over 1200 in sight. The graphs show oil has pretty much had an upward slope in the last year (26 on the graph corresponds to about an 80 price) & gold is still base building but has a solid rising trend.

CLJ10.NYM

..Crude Oil Apr 10

..81.84

.. 0.36 ......(0.4%)

GCH10.CMX

..Gold Mar 10

..1,123.60

.. 11.20 ......(1.0%)

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OIL (ETF) --- 1 year




GLD (ETF) --- 1 year

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In addition to the MetLife-AIG buyout, Royal Dutch Shell (RDS-A & RDS-B) & PetroChina (PTR), 2 global petroleum powerhouses, offered to buy Australia's Arrow Energy for $3B in cash & stock. These mergers & acquisitions raise hopes for the global economies & their recoveries. Greek debt problems look like they will get solved with their version of a bailout package, but there are more countries waiting for similar help. This kind of news should bring out more buyers, but that wasn't the case. Healthcare reform is in the winds & I think markets are afraid of it, causing buyers to hold back (health related stocks were weak). Banks continue to lag the markets. It bothers me (in terms of the condition of the stock markets) although it does not bother the bulls.

Dow Jones Industrials --- YTD




Nasdaq --- YTD