Monday, April 4, 2011

Markets fluctuate near multi year highs

Dow rose 5, advancers ahead of decliners 4-3 & NAZ slipped 1. Bank stocks were even on this uneventful day.

S&P 500 FINANCIALS INDEX

Value	222.47
Change	-0.01 (-0.0%)

MLPs remain hot taking the index up 0.62 to 382, breathing on the record high just 1+ away. The REIT index was up a fraction to the 337s (4 short of a high since 2008). Junk bond funds slipped a tad from their lofty levels & treasuries were a little higher. The yield on the 10 year Treasury dropped 4 basis points to 3.42%. Oil fell, erasing an earlier gain of 0.8% (over $108). Gold was strong, nearing the record highs above $1440.

JPMorgan Chase Capital XVI (AMJ)

BONDS

U.S. 3-month		0.03%
U.S. 2-year		0.77%
U.S. 10-year		3.42%

CLK11.NYM

...Crude Oil May 11

...107.96

....

0.02 (0.0%)

GCJ11.CMX

....Gold Apr 11

.........1,435.50

...

7.70

(0.5%)

Photo: Bloomberg

Kohlberg Kravis Roberts agreed to buy Capsugel from Pfizer, a Dow stock, for $2.38B in cash & PFE will buy back additional shares with the proceeds. Like many large pharmaceutical companies, PFE is facing generic competition on some of its biggest-selling drugs in coming years & has been adjusting its strategy accordingly. PFE lowered its revenue forecast by $800M to $65.2B & said it will add to its previously announced plan to buy back $5B in shares this year. The company is evaluating additional business units to sell. The acquisition of Capsugel is KKR’s 2nd-largest deal in the past year after buying Del Monte Foods $5.3B including debt. The Capsugel unit made more than 180B hard capsules for drugs in 2010, with about $750M in sales. Stockholders were not impressed, the stock was up 12¢.

Pfizer to Sell Capsugel Unit to KKR for $2.38 Billion

Pfizer, Inc. (PFE)

Photo: Bloomberg

McDonald's (MCD), a Dow stock & Dividend Aristocrat, plans to hold its first national hiring day April 19 to fill 50K openings at its restaurants nationwide. The company is making a concerted effort to add staff as its business improves & as more of its restaurants stay open 24 hours a day. This translates to between 3-4 new hires per restaurant. Turnover has slowed because of the weak economy. MCD held a similar event in its Western region last year. More than 60K applied for the 13K positions. Those who are interested can apply in stores or online & some restaurants will hold events & interviews that day. The stock rose 45¢.

McDonald's wants to fill 50K jobs on hiring day- AP

McDonald's Corporation (MCD)

Market action today is like watching paint dry. The many problems are being brushed aside by the markets, but they are waiting for earnings season to begin next Mon evening when Aloca (AA), a Dow stock, reports.