S&P 500 FINANCIALS INDEX
MLPs are building up a head of steam after a rest. The Alerian MLP Index was flat at 290 for more than a week, followed by a nice move in the last 2 days. Today the index gained 2 to the 295s & has its eyes on the 300 high from last month (342 was its all time high reached 2½ years ago). Enbridge Partners (EEP) just announced a successful $500M offering at a rate of 5.205% for a 10 year senior note. Money is available to finance MLP expansion. EEP slipped 7¢. The Dow Jones REIT Index was down pennies at the 180ish level, at its Sep high (shown in the 6 month chart). Junk bond funds are under their Jan highs, but not by much. Today they were fractionally higher. Greek debt worries & a slowing economic recovery sent Treasuries higher. The yield on the 10-year Treasury bond fell 5 basis points to 3.60%, still in its multi month trading range.
Alerian MLP Index --- 2 months
Dow Jones REIT Index --- 6 months
NYC Central Park
Nothing like a big snowstorm on the east coast to raise oil prices. Oil was also helped by an upward revision of Q4 GDP growth from 5.7% to 5.9%, although that is very much a lagging indicator. Going forward, the growth rate will slow significantly when inventory restocking slows (& stops). Gold also had a good day.
|CLJ10.NYM||..Crude Oil Apr 10||..79.47 ||.. 1.30 |
|GCH10.CMX||..Gold Mar 10||..1,118.30 ||.. 10.50 |
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Markets got bogged down in the snowstorm which hit NYC & no encouraging news kept them treading water. The 2 month chart for Dow & NAZ shows there was an attempt in Feb to head back in the black for 2010, but that was not to be. More dreary economic data will keep markets under pressure. Housing & autos traditionally are supposed to lead an economic rebound, but that is not happening. Now there is talk of higher interest rates approaching. Already the Federal Reserve raised the bank lending rate & is making other moves which are the beginning of increasing interest rates back to where they have been historically. Of course, that should go hand in hand with a decent economic recovery. The Greek debt problem drones on, the EU told Greece to come up with a tougher austerity plan. The € is back at $1.35, but remains down from recent highs & some pros are betting even lower.
Dow Jones Industrials --- 2 months
Nasdaq --- 2 months