Friday, June 11, 2010

Markets zig-zag with little accomplished

Stocks were in the red for most of the day, but never by very much. Buying into the close gave the Dow a gain of 38, advancers ahead of decliners 2-1 & NAZ was up an impressive 24. Weak retail sales damped demand for stocks all day until the closing minutes. Buyers pulled the Financial Index into the black at day's end.


% Change

The MLP index rose 2+ to 299 bringing its weekly gain to 7. The REIT index also rose 2+, bringing it just over 201, with a weekly gain of 15. Junk bond funds were mixed while the VIX was lower, bringing it below 30. Treasuries surged again, as the yield on the 10-year Treasury bond fell 10 basis points to 3.22% (very low).

Alerian MLP Index --- YTD

Dow Jones REIT Index --- YTD

10-Year Treasury Yld index - YTD

After breaking thru the 75 ceiling yesterday, oil slipped back into its trading zone. But gold was strong, joining with Treasuries today. A button is provided below to learn more about the gold cycle.

CLN10.NYM..Crude Oil Jul 10..73.85 ..Down 1.63

GCM10.CMX..Gold Jun 10..1,229.60 ..Up 8.80

Gold Super Cycle!!
Click Here

There is growing pressure for China to let the yuan rise in value following economic gains. Inflation accelerated to an annual rate of 3.1% in May, surpassing officials’ target for the full year, retail sales gains shot up to 18.7% & industrial production jumped 16.5%. But the central bank said China still doesn’t have a “solid” recovery in domestic demand. American lawmakers said they’ll go ahead with legislation targeting the yuan peg as US & Chinese leaders prepare to meet at a Group of 20 summit this month. Bets on the yuan to strengthen against the dollar increased after U.S. officials stepped up calls for China to end the peg of 6.83 adopted in Jul 2008.

Chinese Economic Data Challenges Government’s Stance on Yuan

Walgreen (WAG), a Dividend Aristocrat, announced early this week that it would not participate in any new networks run by the CVS Caremark (CVS) pharmacy benefits management business, meaning that it would stop filling any Caremark prescriptions in about three years. CVS responded by saying it will cut Walgreen out of almost all of its networks by July 9. WAG is the largest drugstore chain in the US & Caremark manages prescription drug benefits for more than 50M. Thomas Weisel Partners downgraded WAG to "Market Weight" from "Overweight." WAG stock has been hit hard, at some point it will become a buy. Its record of growing divs is excellent, but the yield just under 2%. Bargain hunters should watch the stock for a lower price which is too attractive to pass up. The stock fell 50¢ to 29.46 in what has been a rough week & a difficult year.

Street sees risk to Walgreen shares in CVS splitAP

Walgreen --- 2 years

The € ended under $1.21 as the outlook for Europeans economies remains dreary. US Retail sales joined unemployment as a reminder recessionary effects are not going away soon. And the oil mess in the Gulf is not getting better. Buying into the close brought the Dow over 10.2K. Maybe the buyers have the right idea, but Dow is still near its lows for the year.

Dow Jones Industrials --- YTD

Get your favorite symbols' Trend Analysis TODAY!
Click Here

Find out what's inside Trend TV!
Click Here

No comments: