Markets little changed after BP suspends next 3 dividends

Stocks started lower & rallied back to break even where they stayed for the rest of the day. Dow ended up 4, decliners ahead of advancers 4-3 & NAZ was up a smidgen. Banks also waffled around break even with the bill for financial regulation looming in the background.



S&P 500 FINANCIALS INDEX

Value	199.06
Change	0.05 (0.0%)

The Alerian MLP index was up 1¼ to the 305s (up 20 YTD) on this sideways day while the REIT index fell 2 to the 206s. Junk bond funds were little changed, but down around 10% from highs last month. The VIX rose a ¼ to 26. The yield on the 10-year Treasury bond fell 3 basis points to 3.28%.

Alerian MLP Index --- YTD




Dow Jones REIT Index -- YTD




VIX --- YTD





Oil rose on hopes for the economic recovery. It's bulls are hoping to take it above the 80 resistance level. Gold is hanging in there very well on all the financial uncertainties starting with Europe.

CLN10.NYM

..Crude Oil Jul 10

..77.66

.. 0.72 ......(0.9%)

GCM10.CMX

..Gold Jun 10

..1,229.90

.. 3.70 ......(0.3%)

Gold Super Cycle!!
Click Here

52 Week High Friday Rule
Click Here

BP (BP) agreed to suspend its quarterly div as part of its commitments to compensate victims of the Gulf oil spill. BP canceled the next payment & won't declare a div for its 2nd & 3rd quarters but will consider resuming payments in 2011 when it issues results for the 4th qtr of this fiscal year. In addition, BP agreed to set aside an initial $20B to pay the victims of the oil spill. In the meantime, the leak goes on & on & on. The stock rose 45¢ to 31.85 on a sense of relief that this move is key to its survival. Other big oil stocks had small changes.

BP Cancels Dividend for First Three Quarters of This Year


BP --- YTD






Congress is weighing proposals to strengthen investor protections & the powers of the SEC. They want to create an office at the SEC to respond to whistleblower complaints. This is part of the financial regulation bill going thru congress. I hope they put limits on the amount of time SEC lawyers can watch porn on their office computers. Some had been spending 8 hours a day watching porn & downloaded so much on their computers that their hard drives crashed!

Lawmakers Weigh Changes to SEC, Investor Protections



The € is waffling around $1.23, up from a few days ago but down sharply from earlier this year reflecting uncertainties about Europe's finances. BP knuckled under to political pressure & gave in on the div issue. Dow has had a nice run in the last 7 days but remains about 10% off its recent highs at 11.2K.

Dow Jones Industrials -- YTD




Nasdaq --- YTD

Find out what's inside Trend TV
Click Here

Get your favorite symbols' Trend Analysis TODAY!
Click Here

Dow jumps 225, banks & energies led the way

Stocks started higher & kept rising all day, finishing at their highs with buying into the close. Dow gained 225, advancers over decliners better than 4-1 & NAZ was up 58. Banks had nice gains, they have been leading the rallies & declines this year. The Financial Index could make another assault on 200 which it has already crossed many times (both ways) in recent times.


S&P 500 FINANCIALS INDEX

Value 199.19

Change 5.88

% Change 3.0%

MLPs rebounded, the index was up 5½ to the 291s & recovered much of yesterday's loss. The REIT index added 4¼ to the 199s. But junk bond funds slipped in this rally. The VIX plunged 5¼ to 30, risk fears eased quite a bit. As expected, Treasuries sold off. The yield on the 10-year Treasury bond rose 4 basis points 3.33%.

Alerian MLP Index --- 1 month




Dow Jones REIT Index -- 1 month




VIX --- 1 month




10-Year Treasury Yld Index - 1 month





Oil is benefiting from the stronger stock markets suggesting a recovery which will need more oil. Gold sold off responding to lower fears shown at the VIX.

CLN10.NYM

..Crude Oil Jul 10

..73.31

.. 0.73 ......(1.0%)

GCM10.CMX

..Gold Jun 10

..1,220.50

.. 4.30 ......(0.4%)

Gold Super Cycle!!
Click Here

Dem senators (Wyden from OR & Schumer from NY) are telling BP (BP) to stop divs until the mess is cleaned up. Divs cost BP over $10B in cash & it will awkward to pay but this also gives a glimpse of how Congress wants to assign blame & punish somebody else. It would be nice if they spent more time policing the SEC which has 33 lawyers (earning $100-200+K) spending time in their offices watching porn. 8 resigned (under pressure) to avoid further embarrassment, the others are still on the payroll! Taxpayers could have been better served if they spent more time watching Madoff & other bad guys. In the meantime, BP's latest attempt to end the leak hit a snag today. But BP gained 1.14 to 37.66 in the up market.

•BP Should Reconsider Shareholder Dividend Amid Cleanup, U.S. Senators Say


BP --- 1 month






Oils snapped back nicely today. The 2 big ones in the Dow: Exxon Mobil (XOM & also a Dividend Aristocrat) & Chevron (CVX), were each more than 1½, but they're coming off depressed levels near 3-4 year lows.

Exxon Mobil --- 1 month




Chevron --- 1 month





Detroit automakers Ford (F), General Motors & Chrysler had double-digit sales gains over last May. However, May 2009 was a terrible time when GM was headed into bankruptcy protection & Chrysler was already there. Foreign car makers also saw 20+% sales gains, again not saying all that much considering how dreary May was last year. Today's markets were anticipating good news from the jobs report on Fri. Expectations are for a gain in jobs of (maybe) ½M. Good news, if it comes, but the details will tell how many are from private employers versus federal (which is always hiring) jobs. The € rose a little, settling at 1.22½. Dow had a nice gain, but a longer view shown in the chart below shows it's been bumping along a little above 10K for a couple of weeks. MLPs & REITs did well today, but junk bonds (stocks with high yields) disappointed after a dreary May.

Dow Jones Industrials -- 1 month

Get your favorite symbols' Trend Analysis TODAY!
Click Here

Find out what's inside Trend TV!
Click Here

Markets advance despite only mixed earnings

Dow gained 25, advancers over decliners almost 4-1 & NAZ was up 20. Dow began the day struggling but pushed up to a 25 advance where it stayed for the rest of the day. Banks led stocks as they have for much of this year. Today's gain for the Financial Index allowed it to recover most of the damage done in the Fri sell-off.


S&P 500 FINANCIALS INDEX

Value 225.26

Change 2.91

% Change 1.3%

The Alerian MLP Index reached another 2010 high, up 3.14 to 315, only 27 short of its record high set in Jul 2007. This is earnings season for MLPs with the usual assortment of qtr over qtr distribution increases. Again, nothing exceptional. The Dow Jones REIT Index gained 3¼ to the 204s (mostly from buying in the PM). Junk bond funds generally had a good day. When stocks do well, stocks with high yields (junk bonds) also do well. The yield on the 10-year Treasury bond fell 2 basis points to 3.80%, little changed in recent weeks.


Alerian MLP Index --- 1 month




Dow Jones REIT Index - 1 month





Commodities, especially oil, had a very good day. But oil & gold remain in the sideways trading pattern they've been in for months.

CLK10.NYM

..Crude Oil May 10

..82.99

.. 1.54 ......(1.9%)

GCJ10.CMX

..Gold Apr 10

..1,139.80

.. 4.60 ......(0.4%)

The SEC is examining the 19 largest US banks to see if any are using an accounting trick that led to the collapse of Lehman, according to Mary Schapiro, SEC Chairwoman, when she testified at a congressional hearing. The hearing probed the bankruptcy examiner's report that said the firm masked $50B in debt. Treasury Sec Tim Geithner said that Lehman's collapse highlights why the administration's proposal to reform the financial system is needed. That legislation includes a mechanism to allow the gov to wind down ailing financial companies whose collapse could take down the entire financial system & the broader economy.

• SEC looking into accounting at 19 biggest banks- AP

Apple (AAPL) & Yahoo (YHOO), 2 tech heavyweights, report earnings after the close. AAPL was off 2.48 while YHOO was about even.


Apple --- 1 month




Yahoo --- 1 month





Dow lagged behind other averages. After reporting earnings, Dow stocks IBM (IBM), Coca Cola (KO) & Johnson & Johnson (JNJ) fell. IBM earnings looked good while the other 2 were weak. Banks continued strong even though they are facing more regulation. High yielders did especially well today. The potential overhaul of financials & the gov civil fraud case against GS did not deter stock buyers. But GS lost another 3.34. Traders instead looked to earnings reports.


Dow Jones Industrials - 1 month




Nasdaq --- 1 month

Get your favorite symbols' Trend Analysis TODAY!
Click Here


Find out what's inside Trend TV!!
Click Here