Thursday, July 22, 2010

Stocks surge on earnings and optimistic forecasts

Good earnings make for happy stockholders. Dow rose 216, advancers over decliners 8-1 & NAZ jumped 56 (2.6%). Banks are leading/joining in the rally as the Financial Index is putting more distance between it & its 2010 lows.


Value 193.73 One-Year Chart for S&P 500 FINANCIALS INDEX (S5FINL:IND)
Change 5.01 (2.7%)

MLPs just keep flying, the index gained 1+ to the 331s (yet another post 2007 high). The REIT index shot up 6½ to 199. Junk bond funds were generally higher while the VIX dropped 2 to the 23s near its lows since early May. Treasuries sold off. The yield on the 10-year Treasury bond rose 4 basis points to 2.93%, still quite low. The € was up back up to $1.29 ahead of the bank stress test results tomorrow.

Alerian MLP Index --- 2 weeks

Dow Jones REIT Index --- 2 weeks

VIX --- 2 weeks

10-Year Treasury Yld Index --- 2 weeks

Oil is also sharing in the rising markets while gold has a more modest gain of 5.80 to 1197.

CLU10.NYM...Crude Oil Sep 10...78.34...Up 1.78

Gold Super Cycle!!
Click Here

Purchases of U.S. Existing Homes Fell in June

Photo: Bloomberg

Sales of previously occupied homes fell 5.1% in Jun to an annual rate of 5.37M, according to the National Association of Realtors. Since the popular tax credits expired, the number of buyers for homes has fallen sharply, despite lower prices & the lowest mortgage rates in decades. The situation has been worsened by high unemployment, tight lending standards & rising foreclosures. As sales have slowed, the supply of unsold homes on the market has risen 2½% to almost 4M, nearly a 9 month supply (highest level since Aug). Sales are expected to keep sinking.

Purchases of U.S. Existing Homes Fell in June

Today's earnings reports were well received (the first 3 are in the Dow).

Caterpillar (CAT)_________1.22
AT&T (T)_______________0.68
3M (MMM)______________2.22
Bristol-Myers Squibb (BMY)_0.21

UPS (UPS)______________3.86

Caterpillar -- 2 years

AT&T -- 2 years

3M -- 2 years

Bristol Myers -- 2 years

UPS -- 2 years

This is the first day earnings reports have been well received. But longer term, stocks remain sloshing a little above 10K while MLPs & Treasuries are soaring.

Dow Jones Industrials --- 2 weeks

Get your favorite symbols' Trend Analysis TODAY!
Click Here

No comments: