Markets can't decide where to go

Stocks are taking a rest. Dow is up 2, advancers ahead of decliners by 15% & NAZ gained 5. However, up means new 18 month highs for both averages. Banks are higher again. The Financial Index is getting closer to its recent 211 top. Gains have been small but steady for several weeks.


S&P 500 FINANCIALS INDEX

Value 205.49

Change 0.76

% Change 0.4%

The Alerian MLP Index & the Dow Jones REIT Index are each trying to establish new post Lehman collapse highs. The MLP index edged up a fraction to the 299s, getting closer to its 300 ceiling while the REIT index is up 1 taking within 2 points of reaching an 18 month high. But mixed markets are not bringing out enough buyers to put them over their tops. Junk bond funds gained while the yield on the 10-year Treasury bond rose 4 basis points to 3.72%.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks

Mixed markets gave mixed signals for commodities. Oil is trying to reverse 80 from a ceiling to a floor (making the bulls happy) while gold is building a base around 1100.

CLJ10.NYM

...Crude Oil Apr 10

...81.90

... 0.40 .......(0.5%)

Gold

...1,126.30___

-8.90___

-0.8%

Gold Super Cycle!! Click Here

Source: AP Photo/Mark Lennihan


AIG (AIG) will sell another overseas life & health insurance unit for $15.5B to MetLife (MET) in its ongoing bid to repay gov aid. This is the 2nd major deal AIG completed this month to raise cash. On Mar 1, it sold Asia-based life insurer, AIA Group, to Britain's Prudential PLC for $35.5B giving MET a much larger presence in Japan as well as high-growth markets in Europe, the Middle East & Latin America. Including this sale, AIG will be able to slash its gov debt by $51B (39%). AIG rose 1 while MET gained 1.69, a good deal for both!

•AIG Agrees to Sell Alico Unit to MetLife for $15.5 Billion in Cash, Stock


AIG --- 1 year




MetLife --- 2 years

Photo: Bloomberg

McDonald's (MCD), Dow stock & Dividend Aristocrat, reported a 4.8% rise in Feb sales at established restaurants. Strong overseas results offset softness in the US as the weather & high unemployment numbers weighed on domestic markets. Chinese New Year celebrations in many overseas markets boosted sales with Japan, China & Australia being particularly strong. Sales at restaurants open at least 13 months rose 0.6% in the US, 5.4% in Europe & 10.5% in the Asia/Pacific, Middle East & Africa (APMEA) region. The stock rose 1.31 to 64.98.

McDonald’s Sales Top Estimates on Olympics, Chinese New Year


McDonalds --- 2 years

Find out what's inside Trend TV!! Click Here

The health bill is coming to a climax this weak, a final vote may be taken. This is huge in size & its outcome one way or the other may influence markets. Health related stocks are lower today on prospects of its passage. Greece is still looking to come up with a solution for its debt problems. The big news was the MET buyout of the AIG unit which should have brought out buyers. Today it was greeted with a yawn.

Dow Jones Industrials --- 2 weeks