S&P 500 FINANCIALS INDEX
| Value | 218.57 | |
| Change | 2.08 (1.0%) |
The Alerian MLP Index fell 1+ to the 366s from selling into the close (after going above 370 in AM trading). But the REIT index gained 2 to 230. Junk bond funds were generally a few pennies higher while Treasuries were weaker. The yield on the 10 year Treasury bond rose 3 basis points to 3.28%. Oil fell modestly after Libya said it will cease military operations against rebels & begin talks aimed at resolving the dispute that has curtailed crude production & exports. Gold climbed for the 3rd straight day on investor demand for an alternative to gyrating currencies (especially the Japanese ¥).
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
| U.S. 3-month | 0.06% | |
| U.S. 2-year | 0.58% | |
| U.S. 10-year | 3.28% |
| CLJ11.NYM | ....Crude Oil Apr 11 | ...101.08 | ..... 0.34 (0.3%) |
| GCH11.CMX | ...Gold Mar 11 | .......1,416.40 | ... 12.40 | (0.9%) |
Photo: Bloomberg
JPMorgan Chase (JPM), a Dow stock, Wells Fargo (WFC) & other major US banks are boosting div payments after passing stress tests evaluated by the Federal Reserve (FED). JPM increased its div to a $1.00 annual rate while WFC added 7¢ to the nickel it paid in Q1. The divs & announcements of share buybacks signal that regulators view banks as being healthy enough to withstand the remaining uncertainties in the economy, after the banking system has been profitable for a year. While several banks raised their divs, others have additional hurdles to clear in recovering from the financial crisis. The FED said it was restricting div payments to 30% or less of the company's expected earnings. The payout announcements came minutes after the FED said it would allow some of the 19 largest US banks to use some of their massive capital cushions to buy back shares, repay capital to the gov & boost divs. Other banks such as BB&T (BBT), BNY Mellon (BK) & US Bancorp (USB) also announced plans to boost payments, in the latest sign that the banking system is recovering. 3 of the 19 largest banks have yet to repay the US bailout aid. Banks stocks were generally up 1-2%.
Fed Says Some Banks Can Resume Dividends After Stress Tests
President Obama said Libya must stop violence & repression against its people or face a military response by an intl coalition. “All attacks against civilians must stop” & Qaddafi must pull back his troops from cities where they have attacked anti-gov forces, Obama said after the UN vote yesterday that cleared the way for the US & allies to take “all necessary measures” to protect civilians. “These terms are not negotiable,” he said. “The resolution that passed lays out very clear conditions that must be met.” The UN Security Council authorized the use of air attacks & a no-fly zone over Libya to protect civilians from forces loyal to Qaddafi trying to end a monthlong uprising. The resolution, which excludes “a foreign occupation force of any form on any part of Libyan territory,” was approved 10-0 with 5 abstentions. Now it's Libya's turn to show they will obey.
Obama Says Qaddafi Must Stop Violence in Libya or Face Military Response
The price of gas has been steady near yesterday's price of $3.54 (still close the the $4.11 record)
The cease-fire in Libya should be viewed as a work in progres, not a done deal. Oil only slipped modestly. The nuclear situation in Japan can turn out to be frightening. As a result, gold continues in strong demand, within 25 of its recent record highs, in these troubled times. The VIX, volatility index, is down from its highs above 30 on Wed but it closed at 24.45, above today's low of 23. Dow is back to where it was 2 months ago & up 270 YTD.
Dow Industrials (INDU)
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