Markets sink on Greek debt worries

Dow has been dropping from the opening bell. Now it's down 236, decliners over advancers 6-1 & NAZ is off an amazing 80! The Greek debt drama, which has been droning on for weeks, finally got the attention of traders. Banks were also hit hard with a 5 point drop for the Financial Index.


S&P 500 FINANCIALS INDEX

Value 216.24

Change -5.30

% Change -2.4%

The Alerian MLP Index plunged 6¼ to 307, a 1 month low. Ex-distributions are big this week, but this selling also has to include selling relating to the massive spill in the Gulf. The REIT index fell 3½. Selling even reached junk bonds which had a mild sell off. Treasuries soared, taking the yield on the 10-year Treasury bond down 9 basis points to 3.62%


Alerian MLP Index --- 1 week




Dow Jones REIT Index -- 2 weeks





Oil hasn't been able to break thru the 85 ceiling in a meaningful way, today is another example. Gold is flat but still near the record highs of 1200+ reached loast last year.

CLM10.NYM

...Crude Oil Jun 10

...84.02

... 2.17 .......(2.5%)

GCK10.CMX

...Gold May 10

...1,183.40

... 0.70 .......(0.1%)

Gold Super Cycle!! Click Here

The € sank to a 13-month low of $1.30½ as concerns about the massive bailout package for Greece weighed on markets. Last Nov, before markets realized the extent of Greece's debt problems, it was above $1.51. A €110B ($144B) aid package is in the works for Greece. Germany, which will bear the largest share of the load & is expected to approve it by the end of the week. The other € countries & the IMF are scrambling to bail out Greece as borrowing costs soar for other European countries. The Greek situation remains muddy, but today stock markets worried causing the large sell-off.

•Trichet May Need to `Break the Rule Book' to Defuse Greek Threat to Euro
Greek Rescue Doubts Spur Sovereign Debt Risk on Contagion Bets
Greece’s Fund to Provide as Much as 15 Billion Euros For Banks




Buyers signing contracts to purchase homes surged more than expected in Mar, another sign that gov incentives propelled the housing market. The National Association of Realtors said that sales agreements for previously occupied homes rose 5.3% from Feb to a reading of 102.9. This was the highest level since Oct & a 21% increase from Mar 2009. The federal gov provided a big boost to home sales tax credits, but that program expired last week.

• Pending home sales rise 5.3 percent in March- AP

Pfizer (PFE), Dow stock, reported a huge jump in Q1 revenue, related to its giant acquisition of Wyeth last Oct. However, charges from the deal weighed down net income. PFE earned 25¢ per share in Q1, down 26% from last year. Adjusted income for Q1 were 60¢ per share, rising 33% from last year. With the addition of Wyeth business, revenue reached $16.75B, up 54% from the prior year. Pfizer Chief Executive Jeff Kindler said, "Our results this quarter demonstrate the ability of our colleagues to deliver solid operational performance in a challenging environment as well as extract value for shareholders from the acquisition of Wyeth." Pfizer now expects the new health law to reduce revenue by about $300M this year, but PFE is reaffirming its profit forecast for 2010 anyway 95¢ - $1.10 per share, adjusted income of $2.10 - $2.20 per share & revenue of about $68B. The stock rose 30¢.

•Pfizer Profit Beats Estimates on Added Products After Acquisition of Wyeth

Pfizer --- 2 years






Merck (MRK), another Dow drug stock & Dividend Aristocrat, reported double-digit sales growth for a half-dozen of its top medicines & favorable currency rates fueled a 7% jump in Q1 sales, but large charges for its deal to buy Schering-Plough pulled profit down sharply. More importantly (for some), MRK easily beat analyst expectations. EPS was just 9¢, down from 67¢ last year, on revenue of $5.39B. New Schering products added $5.4B to sales, so revenue more than doubled to $11.42B compared to Merck's stand-alone sales in Q1 last year. Excluding $2.31B in charges, MRK would have earned 83¢ a share (beating forecasts of 75¢ & revenue of $11.18B). MRK expects EPS in 2010 of $1.15 - $1.50, including roughly $2 per share in one-time charges with 2010 revenue of about $46B. Excluding the items, EPS is pegged at $3.27 - $3.41. The stock rose 55¢.

Merck Profit Falls After Schering-Plough Acquisition


Merck --- 2 years





The oil spill in the Gulf along along with the confusion about bailing out Greek debt was too much for the markets to handle. Dow is back below 11K again taking it near its monthly low.

Dow Jones Industrials -- 2 weeks

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