Markets rally on jobless claims & earnings

Dow had its best rally in 2 months. But at lunchtime buyers went home & it drifted, just holding onto its gains for the rest of the session. Dow rose 122, advancers over decliners 3-1 & NAZ posted an impressive 40 point gain. Banks had another very good day. The Financial Index has recovered most of its 11 point loss in the first 2 days of the week, it's just 3 below where it began the week.

S&P 500 FINANCIALS INDEX

Value 223.06

Change 5.42

% Change 2.5%

The Alerian MLP Index gained 1.43, still in the 312s, but down 2 from its highs in the AM. The Dow Jones REIT Index rose an amazing 9½ to the 218s, a new yearly high. Junk bond funds were generally higher at their lofty levels. Buying returned to the 10-year Treasury bond, its yield fell 5 basis points to 3.73%.


Alerian MLP Index -- 2 months




Dow Jones REIT Index - 2 months





Oil had another good day, but once again the bulls have to show they can take it significantly above its 6 month trading range (i.e. the 85 ceiling). Gold was just resting.

CLM10.NYM

..Crude Oil Jun 10

..85.33

.. 2.11 ......(2.5%)

GCK10.CMX

..Gold May 10

..1,167.40

.. 1.70 ......(0.2%)

Germany is the main player in bailing out Greece & they are quibbling internally. A bill proposed by lawmakers for assistance would involve banks in the rescue. But Chancellor Angela Merkel is refusing to back down in her opposition, saying that would send a “fatal signal” to markets. Meanwhile the Greek Prime Minister is trying to sell the need for austerity (budget cuts which most will feel), but that is not & has not gone down well. The Greek drama plays on! The € at $1.324 is still near its its yearly lows (having reached $1.45 earlier this year).

•Merkel Is Pressed by Opposition to Enlist Banks in Greek Rescue Financing
•Papandreou Makes Austerity Pitch as Unions Slam Cuts Tied to Bailout Plan


BreitBurn Energy, an MLP which suspended its distribution in Q3 2009, restored a distribution. It will pay $.0375 ($1.50 annualized) in May. The intention had been announced recently, but unit-holders were glad to receive official word. The units gained 46¢ to 15.51.

BreitBurn Energy Partners L.P. Declares Cash DistributionBusiness Wire


BreitBurn Energy --- 2 years






Palm (PALM) agreed to be bought out by Hewlett-Packard (HPQ), a Dow stock, for about $1.4B in cash. HP will pay $5.70 for every Palm common share & certain preferred shares. Palm shot up 1.21 to 5.84 while HP was down 40¢ to 52.88.

•HP is Palm's Silicon Valley savior in $1.4B deal
AP


Palm --- 2 months




Hewlett-Packard --- 2 years






Stocks liked what they heard today. By now, they must have written off Greece & its debt problems. The jobless report wasn't all that great, especially when large numbers of laid off workers are facing expiration of their extended unemployment benefits. If Dow would have been able to extend its AM gains, it could have gone over 11.2K taking into the black for the week. It needs to do that tomorrow to keep its winning streak going (at 9). The streak feels good to stockholders, but all good things have to come to an end. And the end, after such a long run, could be unpleasant.

Dow Jones REIT Index - 2 months

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