S&P 500 FINANCIALS INDEX
The Alerian MLP Index rose another 1.40 to the 305s while the Dow Jones REIT Index was up 1.61 to the 194s. There is still hunger for high yields even though they have come down substantially in the last year. Speaking of high yields, junk bond funds keep rolling along. With recent advances, yields on junk bond funds have been reduced to the 8½-11% region (modest relative to historical standards). The yield on the 10-year Treasury bond dropped 1 basis point to 3.71%.
Alerian MLP Index --- YTD
Dow Jones REIT Index --- YTD
Commodities pulled back a little, but nothing special going on. Worries about China reducing purchases of commodities to keep inflation low may be in the back of traders' minds.
|CLJ10.NYM||..Crude Oil Apr 10||..81.26 ||.... 0.85 |
|GCH10.CMX||..Gold Mar 10||..1,101.50 ||.. 6.50 |
AIG (AIG) has had a big run in the last month, but that cooled off today, down 1 on profit taking. Citi (C) has had a similar story, down 21¢ today taking it back below $4.
AIG --- YTD
Citigroup --- YTD
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The healthcare bill if passed may have large implications for the markets. To finance added expenses, there is talk that Medicare taxes may be raised & also applied to other income (such as dividends & interest). They're still negotiating & the pres just canceled travel next week so he can spend more time twisting arms in DC. Comparing the 2 charts below is interesting. Dow hasn't been able to break thru to a new high this year while NAZ has done quite well, especially in the last month. Speculative juices have been running high & responsible for a lot of the strength in the markets recently. I'm not sure that is what the ardent bulls want to see.
Dow Jones Industrials --- YTD
Nasdaq --- YTD