S&P 500 FINANCIALS INDEX
| Value | 219.84 | |
| Change | 1.08 (0.5%) |
The MLP index plunged 6 to the 361s, down 11 in just 2 days. The REIT was up pocket change in the 224s. Junk bond funds were down a smidgen, little changed in the last 3 months. Treasuries had a major sell off. The yield on the 10 year Treasury bond soared 12 basis points to 3.46%.
Treasury yields:
| U.S. 3-month | 0.16% | |
| U.S. 2-year | 0.62% | |
| U.S. 10-year | 3.46% |
Alerian MLP Index --- 1 month
Dow Jones REIT Index --- 1 month
10-Year Treasury Yield Index --- 1 month
Commodities had a bad day, dragged down by higher growth rates for China which suggest a tightening in monetary policies. Oil fell the most in 9 weeks. It had been 92 earlier this week, now it's in the 88s. Gold is near its lowest levels since early Nov.
| CLG11.NYM | ...Crude Oil Feb 11 | ...88.86 | ..... 2.00 | (2.2%) |
| GCF11.CMX | ...Gold Jan 11 | .......1,345.00 | ... 25.20 | (1.8%) |
**Gold Super Cycle**
Kinder Morgan Energy Partners (KMP) increased its quarterly distribution to $1.13 ($4.52 annualized), an 8% increase over Q4 2009. It has increased the distribution 39 times since Q1 1997. KMP reported Q4 profit rose on higher oil prices & expansion of its natural-gas pipeline network. Excluding unusual items, the company earned 46¢ per unit, beating estimates by 3¢. KMP said unusual items totaled a net loss of $9M, mostly due to legal reserves, offset by the sale of part of a pipeline. Distributable cash flow per unit before extraordinary expenses, a measure of the partnership’s ability to pay dividends to unit-holders, was unchanged at $1.17 per unit, compared with Q4 b2009. “All five of our businesses produced stronger results in the fourth quarter,” said CEO Richard Kinder. The units fell 67¢ in a very weak market for MLPs. The yield is 6.3%, meager by past standards.
Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.13 Per UnitBusiness Wire
Kinder Morgan Profit Climbs on Rising Oil Pricesat Bloomberg
Kinder Morgan --- 1 year
Photo: Bloomberg
Arthur Levitt, former SEC Chairman, said that Apple (AAPL) has disclosed enough about Steve Jobs's health. AAPL released an e-mail from CEO Jobs on Jan 17 saying that he would take a medical leave of absence, his 3rd since 2004. Levitt said the severity of Jobs’s cancer is well established & the board doesn’t need to share more details with the public. “It’s easy to criticize the board, but I think the reality is that someone who owns Apple stock has got to be deaf, dumb and blind not to know that Jobs has an illness that can reoccur at any time,” Levitt said. “Jobs going on medical leave sends a message to the market,” Levitt continued. “An intelligent investor should know the risks of Jobs having a relapse. For the board to opine on what the extent of the illness is right now I don’t think is really necessary.” The stock dropped another 6+ to the 332s, down a whopping 16 in 3 days.
Apple Has Disclosed Enough About Jobs's Health, Ex-SEC Chief Levitt Says
Apple --- 1 week
China's economic growth quickened to an annual rate of 9.8% in Q4, up from 9.6% in Q3. Its consumer prices rose 4.6% in Dec (from a year earlier), compared with 5.1% in the previous month. Worries about China tightening is making investors nervous around the globe. In yesterday's trading, the Shanghai Composite dropped 80 to 2678 (a low since Oct) Analysts are optimistic about a recoverv in the US during 2011, but a slowdown in China's growth will be felt around the world. Meanwhile, the 2 day plunge for MLPs is worrisome. The market is vastly overbought, maybe this is just a "normal" correction. At least that's what its fans say. But with the recent rise in Treasury rates, the yield spread between the MLP index & the 10 year Treasury has narrowed to 270 basis points. Maybe investors will demand a higher spread to justify holding a riskier security.
Dow Jones Industrials --- 1 month
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