Markets drift lower ahead of financial reform Senate vote

Dow was up a measly 0.75 as early AM gains slipped away with selling into the close on worries about increased regulation for the banks, decliners were slightly ahead of advancers & NAZ fell 7. Banks sold off all day, giving the Financial Index its worst day in weeks & it closed at the lows.

S&P 500 FINANCIALS INDEX

Value 222.31

Change -3.91

% Change -1.7%

The Alerian MLP Index pulled back from its AM highs but still ended with a gain of 1.09 to the 318s, another post Lehman collapse high. The REIT index also pulled back in the PM but closed with a respectable 1.77 gain. Junk bond funds edged higher while the yield on the 10-year Treasury bond was flattish at 3.82%.


Alerian MLP Index --- YTD




Dow Jones REIT Index - YTD





Oil took a spill today while gold was flat. Oil remains range-bound, but, at least for the bulls, is at the high end of its range.

CLM10.NYM

..Crude Oil Jun 10

..84.01

.. 1.11 ......(1.3%)

GCJ10.CMX

..Gold Apr 10

..1,153.50

.. 0.40 ......(0.0%)

Photo: Bloomberg


Whirlpool (WHR) Q1 profits more than doubled as sales of its appliances improved both domestically & overseas. WHR was helped by last year's stimulus bill which funded a $300M program offering rebates to buyers of energy-efficient appliances & other products that carry the "Energy Star" label. In Q1 WHR earned $2.13 per share, well above 91¢ last year & beat estimates of only $1.33 . Revenue rose 20% to $4.27B. In North America, revenue grew 7% to $2.3B. The company predicts full-year US unit shipments will rise 3-5%, up from a previous forecast for a 2-4% increase. European revenue increased 6% to $739M, Latin American revenue jumped 65% to $1.1B & Asian revenue surged 60% to $192M. Whirlpool also raised its full-year unit shipment forecast for the region to a 5-8% increase from 3-5% previously guided. WHR anticipates 2010 profits between $8-$8.50 per share, above its prior guidance of $6.50-$7.00. Traders liked the news, taking the stock up 10% or 10.20 (but it fell more than 6 from its early AM highs).

•Whirlpool Advances After Appliance Maker Boosts Annual Earnings Forecast


Whirlpool --- 2 years






Financial reform, more commonly referred to as the banking bill, is facing a tough challenge. The Dems are pushing for a key vote an hour after the markets close today. It looks like the votes will break down by party lines which will cause problems for the Dems pushing this legislation. But this is not considered a final test. The Dems & Reps can still work out their differences. Greek debt problems linger on. The € firmed a little to $1.337 (up a fraction of a penny) on hopes Greece can muddle by. Tomorrow, the big news story will be testimony by Goldman Sachs. Dems are out for blood & have no sympathy for multi millionaires who made even more money betting against mortgages. Some of this testimony could affect the banking legislation being debated. The Financial Index already took a drubbing, much of it in the PM.


Dow Jones Industrials - YTD

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