Dow lost pennies, decliners over advancers almost 2-1 & NAZ fell 5. MLPs bounced back which limited the loss for the index to 1+ in the 453s & the REIT index inched up a fraction to 299. Junk bond funds continued mixed & Treasuries rallied bringing lower yields. Oil took a tumble & gold sold off badly, going below 1500.
AMJ (Alerian MLP Index tracking fund)
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EU finance ministers agreed to grant Ireland & Portugal 7 years more years to pay their bailout loans, easing the burden on their economies & paving the way for a quicker return to sustainable growth. In their attempts to stabilize the economy of the euro zone, the ministers, also approved a €10B ($13B) loan package to stop Cyprus from sliding into bankruptcy. But the rescue comes at a heavy price for Cyprus. With an annual economic output of under €18B, it must itself contribute €13B to turn its economy around. However, there was only little progress made on the other plan EU officials have billed as vital in turning the tide in the EU's 3 -year debt crisis, setting up a full-fledged banking union. A legal framework for a central authority for Europe's banks was endorsed & is set to take effect next year. Olli Rehn, the EU's top economic official, said "the timeline for establishing a banking union should be as short as possible."
EU to extend loan repayments for Ireland, Portugal AP
Photo: Yahoo
Cyprus' president said that he will ask the EU to provide more help, which has to pay for most of its expected €23B ($30B) bailout. President Nicos Anastasiades will send letters to EU Commission & EU Council chief Herman Van Rompuy calling for "a change of EU policy" toward Cyprus by offering additional assistance. This sparked speculation among investors that the country was pushing for more money from its intl creditors, the European Commission, ECB & the IMF. However, a gov spokesman said this request for help would not seek more bailout cash. Instead, Cyprus would ask to tap more of the EU's structural & social cohesion funds, which are used to support economic development & invest in infrastructure. Cyprus would also ask for a bigger EU contribution to jointly funded infrastructure projects. Last month, Cyprus & its creditors agreed to a €17B bailout package for the country so it could rescue its banking sector & prop up its economy. However, since then, the bailout package has increased to €23B, with Cyprus's share burgeoning to €13B. The €6B increase is due to a worsened economic outlook and the ailing banks' higher than expected financing needs. The previous administration was blamed for dragging its feet & not swiftly finalizing a bailout deal. As usual, this bailout is far from over.
Cyprus president to ask EU for more help AP
Big Ben says housing remains depressed in many low-income neighborhoods even though the overall home market is making gains. He is urging a broad approach to the problem that seeks to improve education & jobs for lower-income Americans, in addition to housing. The FED chairman says any solutions will have to be tailored to whether a low-income neighborhood is urban, suburban or rural. He spoke at an annual Fed community affairs conference & didn't address low interest-rate policies
Bernanke says housing gains lag in poorer areas AP
Stocks began the day lower with the Dow losing 75 in early trading. But sellers gave up & it finished with a marginal loss, although breadth was weak. Bank earnings are always difficult to understand with so many numbers being reported. But one theme was that revenue was sluggish, not encouraging. Mon Citigroup (C) reports & option guys are placing all kinds of bets one way or the other. Mon is also a big anniversary in North Korea & there is speculation it might test fire a long range missile. Next week will also see many of the biggest companies reporting earnings, which could be a major test for the bulls with Dow already at a record high.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.058% | |
U.S. 2-year |
0.228% | |
U.S. 10-year |
1.718% |
| CLK13.NYM | ...Crude Oil May 13 | ...91.65 |  | 1.86 (2.0%) |
EU finance ministers agreed to grant Ireland & Portugal 7 years more years to pay their bailout loans, easing the burden on their economies & paving the way for a quicker return to sustainable growth. In their attempts to stabilize the economy of the euro zone, the ministers, also approved a €10B ($13B) loan package to stop Cyprus from sliding into bankruptcy. But the rescue comes at a heavy price for Cyprus. With an annual economic output of under €18B, it must itself contribute €13B to turn its economy around. However, there was only little progress made on the other plan EU officials have billed as vital in turning the tide in the EU's 3 -year debt crisis, setting up a full-fledged banking union. A legal framework for a central authority for Europe's banks was endorsed & is set to take effect next year. Olli Rehn, the EU's top economic official, said "the timeline for establishing a banking union should be as short as possible."
EU to extend loan repayments for Ireland, Portugal AP
Photo: Yahoo
Cyprus' president said that he will ask the EU to provide more help, which has to pay for most of its expected €23B ($30B) bailout. President Nicos Anastasiades will send letters to EU Commission & EU Council chief Herman Van Rompuy calling for "a change of EU policy" toward Cyprus by offering additional assistance. This sparked speculation among investors that the country was pushing for more money from its intl creditors, the European Commission, ECB & the IMF. However, a gov spokesman said this request for help would not seek more bailout cash. Instead, Cyprus would ask to tap more of the EU's structural & social cohesion funds, which are used to support economic development & invest in infrastructure. Cyprus would also ask for a bigger EU contribution to jointly funded infrastructure projects. Last month, Cyprus & its creditors agreed to a €17B bailout package for the country so it could rescue its banking sector & prop up its economy. However, since then, the bailout package has increased to €23B, with Cyprus's share burgeoning to €13B. The €6B increase is due to a worsened economic outlook and the ailing banks' higher than expected financing needs. The previous administration was blamed for dragging its feet & not swiftly finalizing a bailout deal. As usual, this bailout is far from over.
Cyprus president to ask EU for more help AP
Big Ben says housing remains depressed in many low-income neighborhoods even though the overall home market is making gains. He is urging a broad approach to the problem that seeks to improve education & jobs for lower-income Americans, in addition to housing. The FED chairman says any solutions will have to be tailored to whether a low-income neighborhood is urban, suburban or rural. He spoke at an annual Fed community affairs conference & didn't address low interest-rate policies
Bernanke says housing gains lag in poorer areas AP
Stocks began the day lower with the Dow losing 75 in early trading. But sellers gave up & it finished with a marginal loss, although breadth was weak. Bank earnings are always difficult to understand with so many numbers being reported. But one theme was that revenue was sluggish, not encouraging. Mon Citigroup (C) reports & option guys are placing all kinds of bets one way or the other. Mon is also a big anniversary in North Korea & there is speculation it might test fire a long range missile. Next week will also see many of the biggest companies reporting earnings, which could be a major test for the bulls with Dow already at a record high.
Dow Jones Industrials
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