Markets advance with a strong finish

This was the 5th straight day when Dow went sideways, just above 10.5K. But buying in the last ½ hour brought Dow within 100 of its 2010 high. Dow rose 44, advancers over decliners a mild 3-2 & NAZ gained 9 to a new 2010 high. Banks moved up helped by favorable comments from Citigroup (C), see below. These stocks have done especially in the last month while facing greater regulation proposed by the Senate. The Financial Index is within 2 of reaching an interim high level after lumbering along for 6 months in the 190-210 range. The index closed at its high.


S&P 500 FINANCIALS INDEX

Value 209.80

Change 1.89

% Change 0.9%

The MLP Index gained a few pennies, good enough for another post Jun 2008 high, at 303.94. The REIT was up almost 1 to a new interim high. Junk bond funds were mixed to higher, essentially at their highs for many, many months. The yield on the 10-year Treasury bond eased back in the PM to break even at 3.72%. But it remains in high territory, the threat of higher interest rates has not gone away.

Alerian MLP Index --- 1 year




Dow Jones REIT Index --- 1 year





Commodities not knowing what to do, did little. Prospects of less demand by China has been weighing them down.

CLJ10.NYM

..Crude Oil Apr 10

..82.08

.. 0.01 ......(0.0%)

GCH10.CMX

..Gold Mar 10

..1,108.00

.. 0.20 ......(0.0%)

The annual inflation rate in China rose to 2.7% in Feb, the highest in 14 months. While not really that high, investors became nervous this would prompt gov tightening to slow economic growth which is above 10%. These fears hurt commodity prices, since China buys just about everything.


China inflation rate - 1 year






Citigroup CEO, Vikram Pandit, said the bank is on track to return to sustained profitability & losses from some of its worst assets should be manageable if the economy does not deteriorate. "Citi today is a fundamentally different company than it was two years ago." He added that Citi's main businesses are aiming to generate annual profits between 1¼-1½% of assets (up from 1.15% last year). Last week the stock was under $3.50. Today it shot up 22¢ to $4.18, closing at its high. The bulls are betting on 8+ in the near future.

Citigroup sees return to sustained profitabilityReuters


Citigroup --- 1 year

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The Senate is working on more regulation for the banks, Sen Dodd is trying hard to make it happen. The Dems are trying to get Healthcare reform legislation passed, but that's not a done deal yet. If the strong close carries into tomorrow, Dow may finally get a new high for 2010.


Dow Jones Industrials --- 1 year




Nasdaq --- 1 year