S&P 500 FINANCIALS INDEX
The MLP index rose 1+ to 376 on favorable sentiment about higher energy prices but the REIT index fell 1½ to the 231s (lowest value in a month). Junk bond funds inched higher (not too far from their highs last year) & Treasuries were also in demand. The yield on the 10 year Treasury bond fell 5 basis points 3.44%.
Alerian MLP Index --- 1 year
Dow Jones REIT Index --- 1 year
10-Year Treasury Yield Index --- 1 year
Oil fell after topping $100 on assurance that disruptions in oil shipments will be replaced. The chart for the contract shows oil has had an usually wild 5 days (going over $100 early today). Gold continues on its winning ways & is only about $20 away from setting a fresh record high!
|CLJ11.NYM||...Crude Oil Apr 11||...97.25 ||.... 0.85||(0.9%)|
|GCG11.CMX||...Gold Feb 11.....||1,415.30 ||... 1.90||(0.1%)|
*** Gold Super Cycle ***
CLJ11 (oil contract) --- 1 week
Below are the latest prices & a chart for gas prices over the last year (courtesy of AAA). Summer driving season is not that far away when these prices will be more acutely felt.
|Week Ago Avg.||$3.145||$3.273||$3.405||$3.540||$2.734||$3.598|
|Month Ago Avg.||$3.110||$3.303||$3.421||$3.423||$2.675||$3.521|
|Year Ago Avg.||$2.678||$2.843||$2.946||$2.857||$2.318||$3.050|
General Motors (GM) posted Q4 results that topped expectations, but its shares fell below the IPO price (at the lows) as concerns shifted to the pressure from rising oil prices & higher costs of launching & selling new cars. Profits were $4.7B in 2010, its first full year after a bankruptcy scoured costs & debt from the balance sheet. Its last year of profits was in 2004 & this was its largest profit since 1999. Today's decline of $1.53 (4½%), taking it back to just above the IPO price of $33, was its largest single-day percentage decline since its IPO last Nov. Q4 net income of $510M represented a slowdown from the previous 3 qtrs, but topped expectations after adjusting a one-time charge to buy back preferred shares held by the Treasury. Revenue rose nearly 15%, from a year earlier, to $37B.
GM Falls Below IPO Price as Rising Oil Dims Truck Sales
General Motors --- 4 months
The break in rising oil prices brought a sense of relief to the stock markets. But Dow is still down 300+ from its highs on Tues. The Mideast remains unstable & the threat of political unrest spreading to other countries (assuming Libya quiets down) remains high. Markets are nervous, a time when gold has a lot of appeal for investors.
Dow Jones Industrials --- 1 year
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