Stocks were trading at a loss for most of the day following the down markets overseas. However in the last hour, a rally brought the Dow up from down 100 to essentially break even although decliners beat advancers almost 3-2. Economic data remains weak. Oil closed at 102.45 & gold is at 984. The Treasury long bond was even holding the yield at 3.53%. One of the little noted items from last week was nibblers were attracted to junk bond funds which typically yield 11%, a good 750 basis points above the Treasury rate. After these bond funds have been punished badly in recent months, nibblers saw value.
The 3 US automakers reported lower sales in Feb. Especially hard hit were luxury & sports vehicles, a reaction to higher priced gas. Oil set another record at 103.95. Higher oil prices result from, among other things, the weak dollar. Exporters are paid with dollars which are slipping in value against other currencies. The Euro hit a new high, over $1.52. The dollar remains weak & I think one of the drivers for Dow being 2K below its all-time high just a few months ago.
No comments:
Post a Comment