Wednesday, December 29, 2010

Stocks extend biggest December rally in 19 years

Dow rose 25 to yet another yearly high.  Dow is up 5% in Dec on increasing bullish sentiment about the new year.  Advancers are ahead of decliners 3-2 & NAZ is up 4.  Banks stock slipped, but the Financial Index is up 20 in Dec (10%) as banks have returned to their role of being markets leaders.


Value 215.29 One-Year Chart for S&P 500 FINANCIALS INDEX (S5FINL:IND)
Change -0.42 (-0.2%)

The MLP index was up a fraction, taking it over 360 & within 6 of its record.  However it's been under the record for 7 weeks while popular averages have been on the rise.  The REIT index fell a fraction in the 223s, going nowhere for months.  Junk bond funds were inching higher, but off their best levels in early Q4.  The yield on the 10 year Treasury bond was up 1 basis point to 3.49%, just a few basis points below its high reached 2 weeks ago.  

Treasury yields:

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

Alerian MLP Index   ---   2 weeks

Dow Jones REIT Index   ---   2 weeks

10-Year Treasury Yield Index   ---   2 weeks

Oil fell from near a 26-month high on speculation US inventories will climb in Jan (not if  cold weather persists).  Gold rose for the 3rd straight day as European-debt concerns mounted & the dollar dropped.

CLG11.NYM...Crude Oil Feb 11...91.33 ...Down 0.16  (0.2%)

GCZ10.CMX...Gold Dec 10......1,407.70 ...Up 2.50  (0.2%)

Gold Super Cycle Link! Click Here

Samsung to Unveil Media Player, Take on IPod Touch

Samsung will unveil a digital media player next month that can play video, take photos & connect to the internet, aimed at competing with touch-screen devices from Apple (AAPL).  The “Galaxy Player,” powered by Android software from Google (GOOG), has a front-facing camera that allows users to have video chats & upload photos online using wireless networks.  The new product will directly compete with the iPod Touch & help Samsung lure a wider range of customers with a brand name it established.  Its Galaxy S smartphone has sold more than 8M units globally since it began selling in Jun.  Are you listening AAPL stockholders?  In all fairness next week is the CES show in Las Vegas when AAPL (along with the competition) will announce new electronics products for the US.   AAPL was up a fraction to the 326s, another record.

Samsung to Unveil Media Player, Take on Apple IPod Touch

Apple   ---   1 year

Groupon, the online-coupon site that spurned a $6B offer from GOOG this month, has filed to raise up to $950M from the sale of preferred shares after it amended its certificate of incorporation, allowing it to issue 30.1M shares of Series G preferred stock at a price of $31.59 a share, according to a Dec 17 filing. The financing could value Groupon at $8B.  Founded in 2008, Groupon offers daily group discounts on restaurants, theme parks, clothes, manicures & other consumer items & has amassed more than 35M users.  Groupon employs 3K, most in sales.  Groupon will make a decision next year on whether & how soon to proceed with an IPO.  Popular stock offerings are good for the stock market.

Groupon Seeks to Raise as Much as $950 Million, VCExperts Says

Listless markets are drifting in the absence of significant new news.  Volume is very low, making it difficult to learn much about the markets.  Next week will be the new year.  Traditionally Jan is a good month for stocks as a reaction to selling in Dec along with added money flowing into retirements accounts.  But this year Dec was an outstanding month, making it difficult to for the bullish argument.

Dow Jones Industrials   ---   2 weeks

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