Bulls Keep Running

All three major US stock indices finished up for the third strait week.  The Dow Jones Industrial Average closed at 12,391.25, the highest the index has closed since June 5, 2008.  The NASDAQ Composite closed at it's highest mark since October 31, 2007.  The tech heavy NASDAQ finished the week at 2833.95.  The S&P 500 stock index gained ( 1343.01, +2.58, +0.19% ) today to finish the week at it's highest level since June 17, 2008. 

Caterpillar Inc (CAT), one of 2010's best performing stocks, shares led the charge for the Dow today by adding 2.4% on some stellar numbers.  Surprisingly positive earning reports have almost become expected on Wall Street this year.  After a third strait week of gains the talks of a pull back are once again growing in popularity.  Are investors willing to keeping riding this bull, or will they do some profit harvesting and stop to catch their breath?  We will not get an answer until Tuesday, because US markets will be closed Monday in observance of Presidents Day.  Enjoy the long weekend.

Gumbo at the Beach

Grab your heartburn medicine of choice and head on over to the 22nd Sandestin Gumbo Festival.  It will feature some of the gulf coast best culinary minds displaying their take on the Cajun classic.  The gumbo festival will kick-off Sandestin's "Taste of the Village" in it's inaugural year.  "Taste of the Village" will have Village merchants supply guest with some of their tastiest culinary delights.  Live music and the smell of mouth watering food will be in the air all weekend.  It should be a great time for people of all ages, and great opportunity to get out and support some local businesses.  Enjoy the beautiful weather this weekend, and drive safe.

BP and Feinberg at Odds Over Final Payment Formula

BP argues that Feinberg's final payment formulation is far to generous.  In a 36 page letter to the Gulf Coast Claims Facility, BP breaks down the entire claims process including suggestions on how final payments should be calculated.  The claims facility is currently using a formula that factors in a loss of 70% in 2011 and 30% in 2012.  These percentages will be multiplied by actual demonstrated 2010 losses.  According to BP these projected loss figures are too high, and will result in overly generous final payments.

There is no reason that they shouldn't be overly generous.  No one made them drill in the gulf, and no one made them run there rig recklessly.  But when it comes to compensating residents of the gulf, BP should be required to go above and beyond.  Think about it like this: BP is trying to make this a very exact quantitative process, but there proposal neglects to factor in diminished quality of living.  Gulf coast residents lives have been impacted in some many more ways than lost income, and they should all be included in payments.  It appears that this letter is already backfiring on BP.  Media and politicians are tearing them apart and this should lead to some loosening of the purse strings by the claims facility in hopes of saving face.