Another day of declining markets. Dow was down 43, decliners ahead of advancers 5-2 & NAZ was down 27. The usual suspects were among the many problems. Markets were disappointed that the regional manufacturing index declined (mentioned in the prior blog), a clear sign of trouble in the economy. While oil pulled back to 98, this still represents a difficult price for the economy to digest. The Treasury bond rallied with its yield declining to 3.78% & gold hit new highs at 944, showing the effects of flight to safety.
Starbucks (SBUX) is laying off 600, another indicator that the economy is in a slowdown period if not recession. There is wide agreement that the FED will cut the interest rate by 50 basis points at the next meeting in March. Now there is more recognition that cutting interest rates will do just so much good in helping the struggling economy.
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