S&P 500 FINANCIALS INDEX
| Value | 199.56 | |
| Change | 4.01 (2.1%) |
Distribution announcements have started for MLPs (see below) bringing out more buyers. The Alerian MLP Index gained almost 3 to 322, not seen since the index fell off its 342 record three years ago (in Jul). However, when the index climbs its yield falls which could hurt demand for MLP units. REITs are also hot, taking the index up another 4 to 198. Junk bond funds inched higher but are lagging the broad markets. The VIX, volatility index, fell 0.45 to just under 24 & down a third from last week. Market fears have eased considerably. As expected, Treasuries sold off. The yield on the 10-year Treasury bond rose more than 3 basis points to 3.08%.
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index -- 2 weeks
VIX --- 2 weeks
10-Year Treasury Yld Index - 2 weeks
Rising stock markets are lifting all boats (commodities) including gold, taking it back over the important 1200 level.
| CLQ10.NYM | ...Crude Oil Aug 10 | ...76.68 | ... 1.73 .......(2.3%) |
| GCN10.CMX | ...Gold Jul 10 | ...1,209.60 | ... 11.10 .......(0.9%) |
The crown prince of Abu Dhabi said the emirate is considering an investment in BP (BP). “We are still thinking about it,” Sheikh Mohammed bin Zaved Al Nahvan said. He added, “We are looking across the board. We have been partners with BP for years.” Tony Heyward, BP CEO, said that he had a “very good” meeting with the crown prince. BP was up a fraction to the 37s & is up 10 from its lows 2 weeks ago.
Abu Dhabi May Make BP Investment, Crown Prince SaysBP --- 2 weeks
Alcoa (AA), the first Dow stock to report Q2 earnings, reported Q2 sales & profits that beat estimates & forecast higher global demand for aluminum, which may signal broader economic growth. Sales of aluminum for packaging & commercial transport helped AA report EPS of 13¢, exceeding the 11¢ estimate. AA said global aluminum consumption will climb 12% in 2010, compared with its previous forecast of 10% & expects aluminum sales for automotive uses to increase 3-8% this year, while sales for commercial trucks & trailers may gain 12-17%. The stock was up 10¢ to 10.97.
Alcoa Profit Surprise Bodes Well for Economy, Stocks
Alcoa --- 2 weeks
Enterprise Products Partners (EPD), the largest MLP, increased the quarterly distribution to a $2.30 per unit annualized rate, 5½% above Q2. This was their 33rd distribution increase since the IPO in 1998 & the 24th consecutive quarterly increase. The units were up 34¢ to almost $37.
Enterprise Increases Quarterly Cash Distribution Rate
Enterprise Products -- 2 weeks
BP appears to be making progress on stopping the oil flowing into the Gulf. Greece sold debt at favorable terms. The financial reform bill looks like it will have enough votes to be approved in the Senate but that is not disturbing bank stocks. AA earnings & outlook are encouraging for investors. But Dow is up almost 700 from its lows last week. While this feels good, the bulls have to worry about overbought conditions.
Dow Jones Industrials -- 2 weeks
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