Wednesday, February 27, 2008

Markets little changed

Markets were little changed. After the Dow spent much of the day in the black, it pulled back in the afternoon to little change. Dow & NAZ were each up 9 but decliners were a slightly ahead of advancers. Testimony before a congressional committe that the FED is ready for more interest rate cuts to help the economy was seen as a bullish sign, but that wore off later in the day. Bernanke, FED Chair, said the FED is more concerned about the weak economy than rising prices. Fannie Mae (FNM) & Freddie Mac (FRE) had been up sharply on the removal of lids for mortgage lending. However, that entusiasm also slipped after midday resulting in little price changes. The Alerian MLP index pulled back 3.63 to 292.52 (shown in the graph on the right), near the bottom of the recent trading range. 2 prominent companies had unit offerings today causing some of the decline. But selling in others could come from nervousness about the economy.

Commodities continue strong. Oil reached 102 but slipped back to close just under 100. Gold closed at 961 an ounce, up12 & another record. Agricultural commodites, i.e. corn, wheat & soybeans are at record leveles & these price increases will reach everybody. Tomorrow we'll see if more enthusiasm can overcome negative news stories.

No comments: