S&P 500 FINANCIALS INDEX
| Value | 221.24 | |
| Change | 0.26 (0.1%) |
MLPs are rising again. The index was up 1 to the 369s & the REIT index gained ½ to the 229s. Junk bond funds were slightly higher while Treasuries were weak. The yield on the 10 year Treasury bond rose 7 basis points to 3.39% (recovering much of yesterday's sharp decline).
Treasury yields:
| U.S. 3-month | 0.15% | |
| U.S. 2-year | 0.63% | |
| U.S. 10-year | 3.39% |
Alerian MLP Index --- 2 weeks
Dow Jones REIT Index --- 2 weeks
10-Year Treasury Yield Index --- 2 weeks
Oil pared gains after the Energy Dept said stockpiles increased 4.8M barrels. Gold held through exchange-traded products, or ETPs, tumbled by the most in more than 2 years amid speculation that improving prospects for the global economic recovery are undermining demand & hurting prices. Assets in gold-backed ETPs fell 31 metric tons yesterday to 2,043 tons, the lowest level since Aug, the biggest drop in percentage terms since Oct 2008.
| CLH11.NYM | ...Crude Oil Mar 11... | 86.41 | ... 0.22 (0.3%) |
| GCF11.CMX | ...Gold Jan 11 | .......1,329.40 | ....2.90 (0.2%) |
Gold Super Cycle Link! Click Here
Photo: Bloomberg
Buyers purchased the fewest number of new homes last year on records going back 47 years. The Commerce Dept said sales for 2010 totaled 321K, a drop of 14.4% from the 375K homes sold in 2009, the 5th consecutive year that sales have declined after hitting record highs for the 5 previous years. It could be years before sales hit a healthy rate of 600K a year. However, the year ended on a stronger note. Buyers purchased new homes at an annual rate of 329K units in December, a 17½% increase from the Nov pace.
Sales of New Homes in U.S. Rose More Than Forecast
Photo: Bloomberg
Abbott Laboratories (ABT), a Dividend Aristocrat, reported Q4 sales & earnings that slightly topped forecasts, fueled by strong demand for its prescription medicines & heart stents. Solid quarterly results contrasted with those of its larger rival, Johnson & Johnson (JNJ), which just reported sales far short of the mark. EPS for ABT was 92¢ in Q4, with results tempered by costs of recent acquisitions, compared with last year's 98¢. Excluding special items, EPS was $1.30 beating the average forecast of $1.29. Sales rose 13.4% to $9.97B, helped by the recent purchase of Solvay's medicines business, topping forecasts of $9.89B. Global pharmaceutical sales jumped almost 23% to $5.9B. Its flagship product, Humira, rose 13% to $1.9B, while sales of Trilipix & TriCor (triglycerides), rose 19% to $0.5B. Niaspan, which raises "good" HDL cholesterol, gained almost 13% to $286M. Coronary stents, used to prop open arteries that have been cleared of plaque, remained a dependable growth driver, with sales jumping almost 20% to $514M. But pediatric nutritionals remained a disappointment, falling 6% to $742M (following a recall last Sep of the contaminated Similac infant formula). ABT will cut about 1.9K jobs as part of a restructuring for its pharmaceutical business. CEO Miles White said that sales rose in Q4 “despite a very challenging environment.” The company has also wrestled with high profile safety problems in the past year after pulling its diet drug Meridia from the market in Oct because of heart risks, only one month after it recalled millions of containers of its best-selling Similac baby formula. The expected div increase (from 44¢) has not been announced yet. The stock fell almost $1 to below $47 & has not participated in the 2010 market rally. With a yield approaching 4%, yield conscious bargain hunters will be interested.
Abbott Cuts 1,900 Jobs in Restructuring of Drug Uni
Abbott --- 1 year
The oil business is strong. ConocoPhillips (COP) Q4 earnings jumped 54% despite a drop in production as crude prices increased. COP reported EPS or $1.39 in Q4, above 86¢ last year. Revenue grew 22% to $53.2B. Excluding special items, COP earned $1.32 per share (above expected earnings of $1.29 for Q4 on revenue of $47.3B). The market liked the news & the stock jumped $1.42 to $68.90.
ConocoPhillips --- 1 year
The first number I saw this morning was Dow 12,001. Now the bull have the challenge to keep it above that important level. Until the FOMC announcement is release in the PM, little should happen in the markets. It's all but certain that low interest rates will be maintained, but investors want to know what they have to say about future increases. An improving economy will force higher rates. The main question is, when?
Dow Jones Industrials --- 2 weeks
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