Markets rise after Obama spoke in NYC

Dow began rising at noon when the pres spoke, adding more than 100 which took it back into the black by day's end. Dow gained 9, advancers ahead of decliners 3-2 & NAZ rose 14, helped by Starbucks (SBUX) but hurt by eBay (EBAY) & Qualcomm (QCOM) earnings reports. Banks bounced back in the PM as Obama's speech did not create waves. The Financial Index remains near its highs reached last week.

S&P 500 FINANCIALS INDEX

Value 224.33

Change 1.28

% Change 0.6%

The Alerian MLP Index added pennies remaining at its high (315) since mid 2007. The Dow Jones REIT Index rose 3.37 to the 211s, another high for 2010. REIT buyers were encouraged when Simon Property (SPG) sweetened its offer for General Growth Properties (GGP) by bringing 4 more partners with more capital so that GGP can emerge from Chapter 11. SPG gained 1.40 while GGP slipped 3 pennies. Junk bond funds were mixed, still near their recent highs. The yield on the 10-year Treasury bond rose 3 basis points to 3.77%, petty much flat for many weeks.

Alerian MLP Index --- 1 month




Dow Jones REIT Index - 1 month





With buying in the PM, oil eked out a gain & gold reduced its loss. Neither was meaningful except for day traders.

CLM10.NYM

..Crude Oil Jun 10

..83.75

.. 0.09 ......(0.1%)

GCJ10.CMX

..Gold Apr 10

..1,142.50

.. 5.70 ......(0.5%)

Cost-cutting & an influx of US customers helped Starbucks post a substantial increase in Q2 profits, the first increase in 13 qtrs. SBUX posted a better-than-expected profit of 28¢ per share for the qtr that ended in late Mar, easily beating the 3¢ from last year (weighed down by hefty charges). Revenue rose 9% to $2.53B. Both figures beat forecasts, 25¢ per share on revenue of $2.41B. SBUX also boosted its guidance for the year's adjusted profit. It expects to earn between $1.19-$1.22 per share, up from $1.05-$1.08. Sales in stores open at least a year climbed 7% in the US for Q2 (a 4 year high). However sales at stores that opened or were closed during the last 12 months slid 8% as SBUX cut costs & closed stores to shore up its business. Markets liked the news & bid up the stock 1.86 to 27.25.

•Starbucks' 2Q profit soars, revenue climbs


Starbucks --- 2 years





The pres spoke but said nothing new, exactly what traders like to hear. Surprises scare them. The rally in the Dow after his speech was impressive, indicating it wants to go higher even with the looming specter of increased regulation over banking institutions. Now Dow is essentially at the highs hit last week.

Dow Jones Industrials - 1 month

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