Monday, October 10, 2011

Bailout Monday brings out stock buyers

Dow exploded going up an amazing 330, advances over decliners 6-1 (a little more subdued) & NAZ gained 86 (bigger percentage-wise).  Banks led the charge, on PLANS for another bank bailout, this one in Belgium.  While the Financial Index jumped 8, it still has a very dreary chart!

S&P 500 Financials Sector Index

Value 167.31 One-Year Chart for S&P 500 Financials Sector Index GICS Level 1 (S5FINL:IND)
Change   8.22    (5.1%)

Even though the MLP index had a great day, the REIT index did much better.  It gained 10+ to 210.  Junk bond (stocks with high yields) funds rose 2-4%, very big.  Treasuries had the day off, but they clearly would have declined, bringing higher yields.  Oil & gold were each up about 3% as hopes are riding high on the latest move from Europe.

Alerian MLP Index

Value 345.00 One-Year Chart for Alerian MLP Index (AMZ:IND)
Change   5.75    (1.7%)

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Markets soared after leaders from France & Germany promised to strengthen European banks.  They said they would finalize a "comprehensive response" to the debt crisis by the end of the month.  The end of the month is still a few weeks away & Europe does not represent one united entity.  It's hard not to think, markets got ahead of themselves.  Back to the US, tomorrow Alcoa (AA), a Dow stock, reports earnings.  Analysts are looking for 22¢, up sharply from 9¢ last year.  That will be followed by earnings from the big banks.

Dow Industrials (INDU)

stock chart

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