Thursday, September 16, 2010

Markets wobble but end higher

Stocks had another quiet day on low volume. Dow added 22, but decliners led advancers 3-2 & NAZ added only 2 (actually 1 but I rounded up). Bank stocks inched down. The graph for the Financial Index shows it's pretty much in the middle of its 1 year sideways trading range, another sign of a sideways economic recovery.


Value197.56One-Year Chart for S&P 500 FINANCIALS INDEX (S5FINL:IND)
Change-0.71 (-0.4%)

The high yield sectors did little. The Alerian MLP Index fell ½ to just under 329 & the REIT index was 1½ lower to 213. Junk bond funds were generally a little lower while the VIX hardly moved in the 22s. The € rose almost a penny to almost $1.31 (& up 5¢ from its recent lows). The yield on the 10 year Treasury bond went up 4 basis points to 2.76%.

Treasury Securities

U.S. 3-month
U.S. 2-year
U.S. 10-year

Alerian MLP Index --- 2 months

Dow Jones REIT Index --- 2 months

VIX --- 2 months

10-Year Treasury Yld Index --- 2 months

Oil traders are cashing in profits after a strong performance in the last week. In addition, Enbridge Energy (EEP) is preparing to restart its pipeline that supplies Canadian crude to refineries in the Midwest. For EEP fans, it slipped a nickel to 52.51. People are worried about the outlook in Europe & the US recovery. As a result, gold climbed to a new record. GLD, the ETF for gold, began the year at 107 & has marched forward to 124 (lagging behind its value in the futures market) making for one beautiful chart.

CLV10.NYM..Crude Oil Oct 10..74.47 ..Down 1.55

GCU10.CMX..Gold Sep 10..1,273.80 ..Up 7.10

$$$ Gold Super Cycle $$$
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Cisco (CSCO), a Dow stock company, earlier this week said it will begin paying a div, probably around 30¢. This is not going to make it a yield play, but it's a start in the right direction. If it can keep raising it yearly, it will be a Dividend Aristocrat in 25 years (plus 1 to look back at its track record). The stock has gained about $1 (34¢ today) since the announcement.

Cisco --- 2 weeks

Apple (AAPL), with the 3rd largest market cap, is heading for new record prices after already gaining 30% in 2010. There is more talk about competition from major players such as Samsung & Google (GOOG), but buyers are not deterred. Today the stock was up 6+ to the 276s & only 3 below its record high reached 3 months ago.

Apple --- YTD

Little was decided in the markets & tomorrow should be more of the same. Volume continues light at 0.9B shares on the NYSE floor. This is roughly the 2nd anniversary of the Lehman collapse & aftermath. This time, markets have a rising month going for them in a month which traditionally has the biggest monthly declines (on average).

Dow Jones Industrials --- 2 months

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