S&P 500 FINANCIALS INDEX
| Value | 212.92 | |
| Change | 3.42 (1.6%) |
On an up day, MLPs rebounded. The index gained 3½ to the 354s, but still little changed from early Nov. The REIT added 2¼ to 220. Junk bond funds hardly budged, many were down a penny or 2. Treasuries inched up. The yield on the 10 year Treasury bond was off 2 basis points to just below 3.33%.
Treasury yields:
| U.S. 3-month | 0.13% | |
| U.S. 2-year | 0.61% | |
| U.S. 10-year | 3.33% |
Alerian MLP Index --- 3 months
Dow Jones REIT Index --- 3 months
10-Year Treasury Yield Index --- 3 months
Oil surged to a 2-year high as US same-store sales jumped the most since Apr. It wants to go over $90 & with the next stop, $100. Gold prices rose for the 3rd straight session on speculation that Europe’s debt woes will spread, boosting demand for the precious metal as a store of value.
| CLG11.NYM | ...Crude Oil Feb 11... | 89.82 | ..... 0.45 (0.5%) |
| GCZ10.CMX... | Gold Dec 10 | .....1,387.80 | .... 2.30 (0.1%) |
***Gold Super Cycle***
The 2010 census found the nation's population growing more slowly than in past decades but still shifting to the South & West. The Census Bureau announced that the nation's population in Apr 2010 was 309M, up from 281M a decade ago. The growth rate for the past decade was 9.7%, the lowest since the Great Depression. The nation's population grew 13.2% from 1990 to 2000. Michigan was the only state to lose population while Nevada, with a 35% increase, was the fastest-growing state. New numbers are a boon for Reps, with Texas leading the way among GOP-leaning states that will gain House seats, mostly at the expense of the Rust Belt. Texas will gain 4 new House seats & Florida will gain 2. Gaining one each are Arizona, Georgia, Nevada, South Carolina, Utah & Washington. Ohio & New York will lose 2 seats each. Losing one seat are Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey & Pennsylvania. Florida will now have as many House members as New York: 27. California will still have 53 seats, & Texas will climb to 36. Companies best positioned to take advantage of this population shift will benefit.
U.S. Population Grows 9.7% as South, West Gain Most
Greece could have its credit rating cut to non-investment grade by Fitch Ratings within 6 weeks after a review of the nation’s “fiscal sustainability.” The assessment will focus on gov measures to lower the budget deficit, the economic outlook & the “political will and capacity of the Greek state” to push through austerity measures, Fitch said. Greece is rated BBB- at Fitch, its lowest investment-grade rating. Fitch expects the review to be completed in Jan & there is a “heightened probability” of a downgrade. Greece already has non-investment grade ratings at Moody’s Investors Service & Standard & Poor’s. The Greek bailout in May & subsequent aid for Ireland last month have so far failed to quell investors’ concerns that Europe’s debt crisis may spread to other nations. Moody’s has Greece on a Ba1 rating, while S&P has it on BB+. The extra yield investors need to hold Greek 10-year debt over German bunds was 898 basis points today (that's almost 9% extra), compared with a record of more than 965 basis points in May. European debt problems will drag on well into 2011.
Greece's Debt Ratings Put On Watch by Fitch for Possible Downgrade to Junk
Markets are feeling strong when Apple (AAPL) rises. Today the stock was up $2.00 to the 324s, only $1 below the record highs reached last week. No special news, this is just a reflection of the bullish feeling in the markets.
Apple --- YTD
Once again, Dow broke out of its sideways trading zone to the upside. The last time Dow was this high was early Sep 2008 (before the Lehman collapse). Bulls have reasserted command of the markets, but on very light volume. Floor volume on NYSE will be only 0.8B. Any move on low volume has to be viewed cautiously.
Dow Jones Industrials --- 3 months
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