Macro

All 50 state attorneys general opened investigations into faulty foreclosure affidavits after major servicers froze repossessions. Fears of mortgage put-backs and legal liability knocked billions off bank valuations and further clogged the housing market.

A fragile, choppy recovery: the homebuyer tax credit's expiry mid-year triggered renewed weakness and double-dip fears, and the robo-signing scandal halted foreclosures nationwide; QE2 and low rates offered only partial support.

European regulators found only seven banks short a combined €3.5 billion, far milder than the US 2009 exercise. Markets initially rallied but the tests' credibility collapsed months later when passed Irish banks required massive rescue.

Financial sector sentiment holds neutral this month despite high-profile regulatory and oversight developments. The enactment of sweeping financial reform under Obama weighs on industry outlook, signaling tighter operating constraints ahead, while EU stress tests clearing most banks have done little to bolster confidence, met instead with market skepticism over credibility. Together, the regulatory overhang and doubts about balance sheet transparency keep near-term sentiment in check, though not enough to shift the aggregate read from neutral.

General Motors successfully returned to the public markets with a $20 billion-plus IPO, pricing shares at $33 and closing at $34.19 amid strong trading volume, signaling investor confidence despite government selling and a long road to recoup bailout funds. The IPO marks a key step in GM's recovery, with long-term gains needed for U.S. taxpayers to recover their $50 billion investment. Market analysts await upcoming research reports that could influence future stock movement.

The consumer sector remains neutral this month, anchored by the notable but isolated event of Tesla's IPO, which raised $226 million—the first U.S. automaker listing since Ford in 1956. While the IPO signals investor interest in high-profile consumer-facing innovation, it has not translated into broad momentum across the sector. Absent wider consumer spending trends or multiple catalysts, the overall sentiment holds flat.

An explosion on BP's Deepwater Horizon rig in April 2010 killed 11, spilled nearly 5 million barrels of oil, and caused extensive environmental and economic damage across the Gulf Coast. BP faced over $18 billion in penalties, with investigations citing systemic failures. The disaster severely impacted BP's market position and reshaped offshore drilling regulations.

The energy sector is trading slightly bullish despite the Deepwater Horizon spill, as initial market shock gives way to focused reassessment of regulatory and operational risks. While the incident has weighed heavily on sentiment, particularly for offshore operators, the broader sector is seeing countervailing strength in upstream valuations and energy prices due to supply concerns. The spill has intensified scrutiny on deepwater drilling, but has not yet triggered a systemic reprice of energy assets, allowing other fundamentals to support a modest positive tilt.

The Obama administration conditionally committed $8.33 billion in loan guarantees to support the construction of two new Westinghouse AP1000 reactors at Georgia’s Vogtle plant, marking the first new U.S. nuclear project in nearly three decades. Backed by Georgia Power, Oglethorpe Power, MEAG, and the City of Dalton, the project aims to create jobs, reduce emissions, and bolster energy capacity, pending final regulatory approvals. The move signals strong federal support for nuclear energy amid calls for clean energy legislation and climate action.

QE2 signaled, ultra-low rates

Toyota recalled about 2.3 million US vehicles on January 21, 2010 for accelerator pedals that could stick, then took the extraordinary step on January 26 of halting US sales and production of eight affected models. Coming atop an earlier 3.8 million-vehicle floor-mat recall, the unintended-acceleration crisis ultimately spanned more than 8 million cars worldwide and drew executives before Congress.

A strong inventory-restock and ISM-led manufacturing rebound firmed order books; the May Flash Crash and Greek crisis were a mid-year scare, and QE2 supported the recovery.

President Obama signed the Affordable Care Act, expanding health coverage to 32 million uninsured Americans and banning discriminatory insurance practices. The law, passed without Republican support, faces immediate legal challenges from 13 states contesting its individual mandate. Market implications include increased regulation on insurers and potential long-term cost shifts for businesses and consumers.

The ACA was signed in March and, after initial anxiety, proved benign-to-positive for owners: no public option, no price controls, and ~30 million newly insured customers for hospitals, insurers and pharma. Relief and expansion optimism followed.

In March 2010 the F-35 Joint Strike Fighter, the largest weapons program in history, triggered a Nunn-McCurdy cost breach as estimated unit cost roughly doubled from $50.2 million to $80-95 million in 2002 dollars and the schedule slipped more than two years. Defense Secretary Gates had restructured the effort, replacing its program manager and withholding $614 million in fees from the prime contractor.

The total budget (base plus war) peaked at an all-time high, but Gates's efficiency initiative trimmed overhead and deficit clouds and drawdown expectations capped the mood.

The FCC enacted its first Open Internet rules in a 3-2 Democratic-led vote, barring broadband providers from blocking or discriminating against lawful content, with implications for ISPs like Comcast and wireless carriers. While the rules support net neutrality and aim to spur investment, they draw criticism from content creators and industry groups over weak wireless protections and potential copyright enforcement gaps. Market uncertainty remains due to expected legal challenges and concerns over paid prioritization and media consolidation.

Ad spending rebounded strongly and the smartphone/streaming boom accelerated wireless-data revenue. Steadily positive.

Apple sold over 300,000 iPads in the U.S. on launch day, April 3, 2010, marking a strong market entry for its new tablet device. Customers also downloaded over one million apps and 250,000 ebooks, signaling robust ecosystem engagement and setting the stage for significant disruption in the consumer tech and mobile computing markets.

The tech sector remains neutral this month, anchored by a quiet reassertion of hierarchy between its two largest players. Apple’s brief move ahead of Microsoft in market value signaled underlying strength in premium hardware and ecosystem resilience, but the narrow spread between them suggests no broad shift in sector leadership or investor conviction. With no major regulatory, product, or macro developments to catalyze wider momentum, sentiment holds flat.

The world's biggest miner went hostile for the Canadian fertilizer giant in the year's largest takeover attempt, betting on food-driven commodity demand. Canada blocked the deal in November on national-interest grounds, a landmark in resource nationalism.

Despite a China-tightening scare and the Eurozone crisis, QE2 and a weak dollar reflated commodities, gold hit records, copper climbed to year-end records, and BHP's $39bn Potash bid signaled peak sector value for ag-input owners.