S&P 500 FINANCIALS INDEX
MLPs are taking a well deserved rest. The Alerian MLP Index is up small change in the 311s, not far from the 342 all time record. The Dow Jones REIT Index shot up another 2½ to the 206s, yet another 18 month high. Challenges REITs face with higher vacancy rates & prospects for higher interest rates are being ignored. Junk bond funds were mixed to lower, still not far from recent 2 year highs. Buyers returned to the Treasury markets, taking the yield on the 10-year Treasury bond down 4 basis points to 3.95%. That rate is uncomfortably close to the 4% level which has to be holding back stock buyers.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index - 2 weeks
10-Year Yield Treasury Index - 2 weeks
Commodities are resting after the big gains in recent days. Oil still has following winds behind it while gold is taking its time for its advance. Oil has advanced 24% in the last 2 months, a very nice profit for the risk takers who are betting on a strong economic recovery around the world.
|CLK10.NYM||...Crude Oil May 10||...86.89 ||... 0.27 |
|GCJ10.CMX||...Gold Apr 10||...1,134.70 ||... 1.80 |
OIL (ETF) --- 2 months
Here is an article about junk bonds & their fabulous run up in the last 17 months. This market is priced to perfection & ignoring the threats of higher rates on Treasury debt (considered free of risk).
•`Unloved' Junk Offers Best Bond Returns to Goldman Sachs: Credit Markets
A bailout for Greece is muddling along. The IMF will probably get involved, but its role is unclear. On greater worries about Greek debt, the € has settled back to below $1.34 after reaching $1.36 last week.
Greece Denies Attempt to Rework EU-Aid Agreement to Exclude IMF
With no dramatic news, stocks are just muddling along. A stream of massive gov borrowings is affecting bond traders & to a lesser degree, stock traders. 11K may be an important test for the Dow. If bulls can not take it over that line, it could be in trouble.
Dow Jones Industrials --- 2 weeks
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