Earnings news & the FED sank stocks today, but declines were not major. Dow was down 36, decliners over advancers 3-2 & NAZ down 16. Volume continues light at only 1.2B (lightest this year). Negative announcements by Alcoa (AA) & AMD (AMD) weighed on the markets raising fears of more ugly reports. FED minutes were released from the Mar meeting when they saw a contraction likely & worried about a severe & prolong recession. Their actions in Q1 were the most aggressive in a ¼ century.
Oil is trading near 109. Coal stocks rose today in anticipation of more price increases resulting from the cold winter in China. China is a very big user of coal. Below are 2 quotes from Bloomberg.com on coal & Washington Mutual (WM), down 1.34:
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Coal producers gained on speculation a shortage of coal in China will lead to higher prices. China, the world's biggest producer and consumer of coal, may fall 300 million tons short of demand this year, Reuters reported, citing a study by the Chinese Department of Tariffs and Financial Regulation.
Peabody Energy Corp. (BTU:US), the largest producer, rose 5.1 percent to $59.92. Consol Energy Inc. (CNX:US), the third- biggest U.S. producer, climbed 4.9 percent to $78.21. Arch Coal Inc. (ACI:US), the second-biggest, gained 10 percent to $53.03.
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Washington Mutual Inc. (WM:US) had the biggest loss in the Standard & Poor's 500 Index, sliding 10 percent to $11.81. The largest U.S. savings and loan lender said it may post a $1.1 billion loss in the first quarter and plans to cut its quarterly dividend to 1 cent from 15 cents. Separately, the bank was cut to ``underperform'' from ``market perform'' at Keefe, Bruyette, & Woods, Inc. after shares rallied yesterday.
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