Monday, June 20, 2011

Markets climb for 3rd straight day

Stocks began the day lower on worries about Greek debts. But reassurance from the acting head of the IMF calmed nerves, bringing back buyers into the markets. Dow rose 76, advancers over decliners 3-2 & NAZ was up 13. Bank stocks did not participate in the rally, the Financial Index slipped

S&P 500 Financials Sector Index

Value	200.67
Change	-0.15 (-0.1%)

The MLP index finally rebounded, maybe helped by my article just published at SeekingAlpha. The REIT index rose 2 to the 238s & junk bond funds were mixed after having a tough time last week. Treasuries were in demand with the yield on the benchmark 10 year Treasury remaining under 3%. Oil was up slightly after hitting multi month lows & gold was little changed although continues to look strong.

Alerian MLP Index

Value	355.80
Change	2.31 (0.7%)

Treasury Yields:

U.S. 3-month	0.020%
U.S. 2-year	0.375%
U.S. 10-year	2.956%

CLN11.NYM

C...rude Oil Jul 11

...93.34

...

0.36

(0.4%)

Below is today's Market Update on video:

Wal-Mart, a Dow stock & Dividend Aristocrat, completed its $2.4B purchase of a majority interest in South African retailer Massmart. This is the first entry by WMT into South Africa & a major step in the company's strategy to grow internationally. Intl sales account for 20% of revenue & are the fastest growing area. WMT operates roughly 9K stores in 28 countries. Massmart operates in more than a dozen African countries, giving WMT access to more than just 50M South African consumers. The stock was up 21¢ on an up day in the market.

Wal-Mart Stores completes Massmart deal

Wal-Mart Stores, Inc. (WMT)

Caterpillar global sales grew in May, up 52% over last year, but the results were slightly weaker than in recent months. Sales in May were strongest in Europe, Africa & the Middle East, where sales grew 65%. The Asian region posted the weakest results, but sales there were still up 38%. Previously, CAT reported annual sales growth of 66% in Apr, 61% in Mar & 59% in Feb. The stock was up 2.22 to the 98s after pulling back from its highs in early May.

Caterpillar equipment sales grow again in May AP

Caterpillar, Inc. (CAT)

The bulls touting Apple (with target prices of $410-450) forgot about competition. iPad & iPhone are getting hit with a ton of competition & some from the biggest players. Anroid has overwhelmed iPhone system already. The stock fell 5 to the 315s, not seen since Nov.

Apple Inc. (AAPL)

The average price for gas at the pump continues its descent, falling to under $3.65. As long as crude oil is weak, this should pull back further.

The stock market extended its winning streak, but it's still too early to understand how significant the move is. Markets were oversold, which attracts bargain hunters. But fundamental problems remain. The Greek debt situation is still unsettled. Somehow the powers in Europe will make a bailout happen but they are using Scotch Tape, not a real solution. MLPs finally attracted some buyers as SeekingAlpha published my new article on MLPs:

http://seekingalpha.com/article/275725-after-mlps-sell-off-3-for-consideration