S&P 500 FINANCIALS INDEX
Value___215.96
Change___0.41
% Change_0.2%
The Alerian MLP Index remained higher all day, ending up 3.21 to 300. The REIT index slipped pocket change to 200.62, still near its recent high of 204. Junk bond funds continue at high levels while the Treasury bond slipped back taking the yield up 1 basis point to 3.68%.
Oil had a very big gain, but remains near the 80 trend line while gold is firmly over 1100 (again).
CLK10.NYM..Crude Oil May 10__82.36__2.36 (3.0%)
GCH10.CMX..Gold Mar 10__1,110.30 6.10__(0.6%)
For the 5th straight month, consumer spending rose in Feb. It was up 0.3%, matching estimates & following a 0.4% increase in Jan. However, income was unchanged, falling short of expectations as winter storms hurt hiring & hours worked. This performance was rated as fairly good, although it will probably not lead to a significant increase in hirings.
•U.S. Consumer Spending Climbs a Fifth Straight Month as Recovery Quickens
The Treasury said it's getting ready to start selling almost 8B shares of Citigroup (C), the stock fell 13¢ to 4.18. For me, the most important story, on a day with little news, discussed the enormous rally in junk bonds (during the last year) & the willingness of investors to buy up more high risk bonds at even lower yields. Yields of 8½-10% are now common, levels not seen since the best days for junk bonds a few years ago. While the yield on the Treasury bond eked out a minor gain, it looks like it wants to go back over 4%. Higher yields on Treasuries would drag down corp debt prices, especially for high risk debt. With stocks advancing for no clear reasons (Dow is just under 10.9K, an inch below its 2010 high made last week), they would also be hurt with a rise in Treasury yields.
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