S&P 500 FINANCIALS INDEX
MLPs were hit by the wave of selling in the markets. Their index fell 5+ to the 312s. The Dow Jones REIT index plunged over 7 to the 208s. When stocks sell off, junk bonds should follow & junk bond funds were lower. But Treasuries were hot. The yield on the 10-year Treasury bond fell off a cliff, dropping 12½ basis points to 3.69%.
Alerian MLP Index --- 1 month
Dow Jones REIT Index - 1 year
10-year Treasury Yld Index - 1 month
Oil fell as traders were anxious to find out if the Federal Reserve would keep interest rates low. Meanwhile gold took off, as money flowed out of Europe (among other places) into gold. Gold has been doing well in the last month & may be ready for another attempt on its record highs above 1200.
|CLM10.NYM||..Crude Oil Jun 10||..82.19 ||.. 2.01 |
|GCJ10.CMX||..Gold Apr 10||..1,161.40 ||.. 7.90 |
GLD (ETF) --- 1 month
Gold Super Cycle!!
The debt crisis that has shaken Europe's currency (€) widened & intensified as Portugal saw its credit rating cut while Greece's was reduced to junk status causing stocks to slide around the world. Standard & Poor's downgraded the debt of the 2 countries & warned that holders of Greek debt could take large losses in any restructuring! That's not a huge surprise, the markets had been expecting Greece's debt would be restructured at some stage even after a €45B rescue package from its 15 partners in the eurozone & the IMF. The real worry is that Greece's debt crisis is mushrooming to other debt-laden members of the eurozone. One bailout can be dealt with but 2 would be stretching it. The downgrade of Portugal raised those fears. The crisis threatens to undermine the € & make it harder & more expensive for all govs to borrow money. Following the downgrades, the € slid over 1% to $1.3207, essentially an 8 month low.
•Greece Cut to Junk at S&P, Portugal Lowered as Debt Woes Spread in Europe
Enterprise Announces Results for First Quarter 2010; Reports Record Distributable Cash FlowBusiness Wire
Enterprise Products - 2 years
The Goldman Sachs (GS) execs were grilled, but did not give an inch & the stock gained 1. These multi millionaires said they were sorry the financial system took a dive but they did nothing wrong because they didn't know anything. OK!! Then they went (with their lawyers) back home in their limos & private jets. But European debt problems trumped their testimony. This is getting serious as shown by increased demand for gold & Treasuries (flight to safety). Selling in stocks was mild. But if these conditions persist & spread, the impact on the stock markets could get brutal.
Dow Jones Industrials - 1 year
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