Dow has its eyes on 11,000 again

Dow gained 51 (22 below the important 11K ceiling), advancers over decliners almost 3-2 & NAZ is up 8. On a nothing day, buyers are winning out. Banks are edging higher (without conviction). If this holds, the Financial Index will be able to record another 2010 high going into earnings season.

S&P 500 FINANCIALS INDEX

Value 222.23

Change 0.40

% Change 0.2%

MLPs are flattish, their index is essentially even while the Dow Jones REIT Index popped up 2+ bringing it closer to the 2010 high reached this week. Junk bond funds remain strong, inching higher. The yield on the 10-year Treasury bond is creeping back up, today up 2 basis points to 3.92%. Going over the very important 4% level remains a worry for all markets.


Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks





Oil & gold are up mildly, really just drifting like the stock markets. Oil has lost its upward momentum while gold still has following winds. Like stocks, they will feel the effects of earnings reports in the coming weeks.

CLK10.NYM

...Crude Oil May 10

...85.69

... 0.32 .......(0.4%)

GCJ10.CMX

...Gold Apr 10

...1,155.00

... 2.80 .......(0.2%)

Even though Greece has not asked for a euro-zone & IMF rescue plan designed to prevent a default, details are being worked out. Huh?? Greece has been faced with spiraling borrowing costs in recent days on fears the country will not be to pay off its debts. Rescue plans are vague & market concerns have not eased. OK! The € is $1.34½ about where it's been this week as the drama plays on.

•Trichet Thwarted as Greek Credit Crisis Creates Instability in ECB Markets



Wal-Mart (WMT), Dow stock & Dividend Aristocrat, reduced prices on more than 10K items after same store sales at US stores dropped 1.6% last qtr. More price cuts are in the offing. By comparison, Target (TGT), another Dividend Aristocrat, reported their sales rose 0.6%. Because of Wal-Mart's size, its weak sales does not send a positive signal about the recovery in the US economy.

•Wal-Mart Reduces Prices on 10,000 Items at U.S. Stores, Plans More Cuts

Wal-Mart --- 2 years




Target --- 2 years





As shown in the chart below, today is a continuation of a boring week. Bulls have been trying to take control of the Dow, especially in the last 2 days. A failure to bring the Dow over 11K today, will give a negative signal for next week.

Dow Jones Industrials --- 2 weeks

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