Stocks rise on Greek debt bailout

Dow gained 53 bringing it to the edge of 10.9K, advancers over decliner 2-1 & NAZ was up 8. Banks continue very hot. The Financial Index is working its way back to virtually 220 reached yesterday midday.


S&P 500 FINANCIALS INDEX

Value 217.77

Change 2.45

% Change 1.1%

The Alerian MLP Index has been on a bumpy road this week but gained a fraction today to the 298s. After a strong opening, the Dow Jones REIT Index fell back to up only pennies in the 201s. Junk bond funds were generally higher, bringing even lower yields. Treasuries finally saw buying, the yield on the 10-year Treasury bond backed off to 3.87%. But it's still in the upper end of its range for the last 2+ years.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks




10-Year Treasury Yield Index - 3 years





Oil & gas are essentially even, remaining close to the midpoints of their sideways trading ranges.

CLK10.NYM

...Crude Oil May 10

...80.29

... 0.24 .......(0.3%)

Gold

...1,094.00__

-0.10

__-0.0%

The Reuters/University of Michigan final consumer sentiment index for Mar held at 73.6. The forecast for sentiment had been it would fall to 73 & the preliminary reading for the measure was 72.5. The consumer sentiment index averaged 66.3 in 2009, compared with 63.8 in the previous year. But the measure is still less than the average 88.8 during the expansion from late 2001 until 2007. A measure of current conditions rose to 82.4, the highest in 2 years, from 81.8 in Feb. The index of expectations 6 months from now fell to 67.9 from 68.4 in the prior month. This is the usual assortment of blurry statistics

•Confidence Among U.S. Consumers Is Unchanged This Month in Michigan Index


Consumer confidence index - 1 year




Measure of current conditions - 1 year




Consumer expectations - 1 year

Photo: Bloomberg


European leaders agreed to a plan for rescuing Greece if it finds itself unable to borrow, by providing loans from other eurozone countries along with funding from the International Monetary Fund (IMF). However, it sets strict conditions, saying it could only be used as a last resort & requires unanimous agreement of all eurozone members. The Greek Prime Minister, George Papandreou, insisted that he did not believe Greece would ever have to use the mechanism. The € recovered from a 10-month low against the US dollar, to almost $1.34. Sounds good, but this agreement is still fragile.

Euro Rallies as Greece Wins Aid Agreement; Metals, Oil Advance


Yield premium for Greek debt - 1 year






Yesterday's market decline did not discourage the bulls. They want to take the Dow to 11K & may get there early next week. Even with an agreement to bail out Greece, European debt problems are not over. Spain & Portugal will also be looking for handouts. Plus the US economy still has to figure out how to reduce the stubbornly high unemployment rate.

Dow Jones Industrials --- 2 weeks

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