Stocks recover with a renewed focus on earnings

Dow rose in the PM following a sideways pattern in the AM. Dow gained 73 & closed at its highs, but decliners were ahead of advancers 3-2 & NAZ fell 1 (recovering almost 30 off its low). Under pressure, Bank stocks did well. The Financial Index managed a 2+ gain, closing at the highs.

S&P 500 FINANCIALS INDEX

Value 222.35

Change 2.42

% Change 1.1%

Amid all the confusion in the markets, MLPs found favor. The index rose 2 to the 311s but has been flattish, above 310, for most of Apr. The REIT Index was up 1 to the 201s. Junk bond funds were mixed, little changed. Treasuries sold off, the yield on the 10-year Treasury bond rose almost 4 basis points to 3.81%.


Alerian MLP Index --- YTD




Dow Jones REIT Index --- YTD





Nervousness about the volcano in Iceland reducing air traffic in Europe has done major damage to oil. But gold has gotten thru that & the the Goldman crisis pretty well.

CLK10.NYM

..Crude Oil May 10

..81.49

.. 1.73 ......(2.1%)

GCJ10.CMX

..Gold Apr 10

..1,135.20

.. 1.10 ......(0.1%)

Concerns about potential repercussions tied to the charges against Goldman Sachs (GS) held back stocks thru midday. The civil suit comes just as Congress is taking up a bill to overhaul regulation of the financial industry. The measures could extend to the types of risky securities at the center of the Goldman case. The questions become, is financial reform going to be a big setback for financial company earnings & how will this affect overall (S&P 500) earnings? GS reports Q1 earnings tomorrow AM, investors are awaiting results. Today it rose 2.62 from buying in the last hour.

•Goldman Sachs Results May Show Whether Debt-Trading Dominance Is at Risk


Goldman Sachs --- 2 months





Google (GOOG), a key stock in NAZ, has had a tough going after reporting earnings on Thurs evening. Today, the stock was essentially even from buying going into the close. Their earnings were decent, but it sold off sharply because good wasn't just good enough. If that standard is applied to other stocks, this could be a rough earnings season (next couple of weeks). IBM (IBM), Dow stock, reports tonight which will give another take on earnings from a big techie.


Google --- 1 month





Stocks have gotten thru what could have been a very tough day in good shape. They were led by banks which seemed more influenced by Citi's earnings (Citi up 32¢ to 4.88) than the unknown regarding Goldman. And all markets benefited from a strong finish


Dow Jones Industrials - YTD

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