Encouraging jobs report boosts stocks

Dow rose 51 getting sooo close to 11K, advancers ahead of decliners 3-1 & NAZ gained 24. Bank stocks are in demand. The Financial Index is up, taking it near its recent intra day high of almost 220.

S&P 500 FINANCIALS INDEX

Value 217.91

Change 1.17

% Change 0.5%

The 2 week chart below shows MLPs are hot (after a cool couple of weeks). The Alerian MLP Index is up 3+ pushing on 310, not seen since late 2007 when it was coming off its 342 high. The comparable index including reinvested income is over 800, a record level. The Dow Jones REIT Index shot up 3 to 202, what would be a new closing high for 2010 if that holds. Junk bond funds were off fractionally but still near recent high levels with correspondingly lower yields. Getting little attention as markets are roaring ahead, especially higher yielding securities, the yield on the 10-year Treasury bond rose 12 basis points to 3.99%. The daily jump in rates is huge by bond bond standards & could easily take it over the 4% yield ceiling, dangerous territory for all markets.


Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks




10-year Treasury Yield Index - 1 year





Gold is doing little but oil is having another excellent day taking it over the important 85 level. Buyers are betting on a strong economic rebound after the jobs report on Fri.

CLK10.NYM

...Crude Oil May 10

...86.23

... 1.36 .......(1.6%)

GCJ10.CMX

...Gold Apr 10

...1,127.40

... 2.30 .......(0.2%)

The National Association of Realtors said its index of home sales agreements rose 8.2% from Jan to a Feb reading of 97.6. The Jan reading was revised slightly downward to 90.2. Home builders are hoping the report may signal the early stages of strong sales in the spring. A reading of 100 is equal to the level of sales activity in 2001, when the index began. While this index is looking at future sales, the chart below shows the dreary market it is coming from.

•Pending Sales of U.S. Existing Homes Unexpectedly Climbed 8.2% in February

Sales of existing homes - 1 year

Photo: Bloomberg


Apple sold more than 300K iPads (including pre-orders) on Sat, its first day in stores. Prices start at $499 for iPads that connect to the internet through Wi-Fi. Costlier iPads with cellular data connections will be sold later this month. Apple's CEO Steve Jobs said the iPad is going to be a game changer. The trite saying by analysts that "one day does not a trend make" should be applied here. AAPL is up a modest 80¢ with the 3rd largest market cap of all stocks. It better be a game changer or the stock could lose friends very quickly.

•Apple Says It Sold More Than 300,000 IPads in First Day on the U.S. Market


Apple --- 2 years





Stocks are charging ahead. Banks are leaders & high yielding securities are also doing well, reaching new 2010 highs. Dow is just a few points below 11K, but it looks like it's struggling to go over that magical line. If it wants to remain on offense, it should take out that barrier today or tomorrow at the latest. Bulls are delighted, but I'm very nervous about the rise in Treasury yields & threat for even higher interest rates.

Dow Jones Industrials --- 2 weeks

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