Wednesday, April 7, 2010

Markets lower on increased worries about Greek debt

Dow slipped 48, decliners over advancers 2-1 & NAZ was down 2. Selling hurt banks stocks, but the Financial Index is down so little it's hardly worth mentioning.


% Change

The Alerian MLP Index fell 1½ to the 310s, remaining at lofty levels. The Dow Jones REIT Index fell 2, again profit taking which is to be expected. Junk bond funds were mixed to a little higher. The yield on the 10 year Treasury bond is down 1 basis point to 3.96%, staying very close to the important 4% figure.

Alerian MLP Index --- 2 weeks

Dow Jones REIT Index --- 2 weeks

Oil is settling back along with the stock markets, but gold has added a few friends. However, gold needs to go above 1200 to reach new record levels.

CLK10.NYM...Crude Oil May 10....86.53 ...Down 0.31

GCJ10.CMX...Gold Apr 10...1,147.90 ...Up 12.80

GM lost $4.3B in H2 2009 when it was struggling to emerge from bankruptcy & had to cope with a severe downturn in US sales. However, GM is optimistic & still sees a chance of being profitable in 2010. GM had revenue of $57B in the period which compares to $47B in the Jan 1-July 9 period. The gov has given (invested?) $52B in aid & owns 61% of GM. Most of that is expected to be repaid when GM makes a public stock offering & GM has also pledged to repay $6.7B in cash (hoping to do so before Jun).

Greece is still bumbling along trying to figure out how to pay for its deficits. There is a growing awareness that default is a more realistic option. The €, one measure of the seriousness of this problem, is lower at $1.33½ (not good for the global economy). Meanwhile Dow has not been able to break through 11K this week even though NAZ has been inching up. The biggest news item in the markets is the 4% yield on the key Treasury bond. If it tops & holds 4+%, all markets will be in trouble. Alcoa (AA) on Apr 12 will be the first Dow stock to report Q1 earnings, giving a hint about earnings season.

Dow Jones Industrials --- 2 weeks

Nasdaq --- 2 weeks

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