Dow rose 48, advancers over decliners 2-1 & NAZ is up 12. Banks are little changed.
S&P 500 FINANCIALS INDEX
Value.....215.49
Change.....0.06
The Alerian MLP Index had a very nice rebound after weakness last week, up 3.65 to 300. The REIT index slipped a fraction to 200, still near interim high levels with correspondingly low yields. Junk bond funds are mixed & the yield on the Treasury 10 year bond is up 2 basis points to 3.88% (still high).
Commodities were strong as oil is having a very good day, but still little changed from the 80 price level it has remained near in recent months.
CLK10.NYM...Crude Oil May 10__82.11__2.11 (2.6%)
GCH10.CMX...Gold Mar 10__1,109.40__5.20 (0.5%)
Demand for junk bonds is strong as sales are at record in Mar. Rising profits & record low Federal Reserve interest rates attract lending to lowest-rated borrowers. Companies issued $38B of junk (high yield) bonds in Mar, above the previous high of $36B in 2006. Yields fell 0.95 percentage points to within only 5.96% points of comparable government debt (narrowest gap in 2 years). This follows investors plowing a record $33.6B into speculative-grade funds this qtr.
•Junk Bonds Set Monthly Record in `Goldilocks' Environment: Credit Markets
Many aren't sure why the market keeps going up. At the same time, junk bonds keep rising. There may prove to be a connection, more interest in speculative investments is not good for the longer term stock market prospects.
S&P 500 FINANCIALS INDEX
Value.....215.49
Change.....0.06
The Alerian MLP Index had a very nice rebound after weakness last week, up 3.65 to 300. The REIT index slipped a fraction to 200, still near interim high levels with correspondingly low yields. Junk bond funds are mixed & the yield on the Treasury 10 year bond is up 2 basis points to 3.88% (still high).
Commodities were strong as oil is having a very good day, but still little changed from the 80 price level it has remained near in recent months.
CLK10.NYM...Crude Oil May 10__82.11__2.11 (2.6%)
GCH10.CMX...Gold Mar 10__1,109.40__5.20 (0.5%)
Demand for junk bonds is strong as sales are at record in Mar. Rising profits & record low Federal Reserve interest rates attract lending to lowest-rated borrowers. Companies issued $38B of junk (high yield) bonds in Mar, above the previous high of $36B in 2006. Yields fell 0.95 percentage points to within only 5.96% points of comparable government debt (narrowest gap in 2 years). This follows investors plowing a record $33.6B into speculative-grade funds this qtr.
•Junk Bonds Set Monthly Record in `Goldilocks' Environment: Credit Markets
Many aren't sure why the market keeps going up. At the same time, junk bonds keep rising. There may prove to be a connection, more interest in speculative investments is not good for the longer term stock market prospects.
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