Monday, December 17, 2007

Declines continue

Dow is down 78, decliners beat advancers 5-2 & NAZ is down 33. Oil slipped to 90 and the long bond yields 4.2% or down .03%. NY is following declines in Asian & European markets. Credit crunch worries and the ability to save are keeping buyers away. Interestingly the dollar has strengthened against foreign currencies in the last couple of weeks, i.e. the Euro pulled back to $1.43 & the yen is now over 113.

In corporate developments, Ingersoll-Rand (IR down 4.50) is buying Trane (TT up 8.50). It's nice to see some corps have cash to buy other corps. Leveraged buyouts, so popular earlier this year, are pretty much history today.

Retail sales seem to be coming in so-so. Online retailers are now maturing, rapid growth rates are diminishing. Stores are probably doing OK but not great. Cold weather in the east will help clothing sales, but the remaining business may be nothing special. Cold weather hurts home sales which don't need more problems.

No comments: