Ugly days are becoming a habit. The Dow, which just last week was pushing 13K, is now at 12½K & heading for 12K. Lower home sales & the fallout from high oil prices is sending stocks lower. Dow is down 110, decliners over advancers better than 3-1 & NAZ was down 24. Home sales fell 1% in Apr, the 8th decline in that last 9 months, & the median home price fell 8%. At the current sales rate, there is a record 10.7 months supply of homes which brings dreary forecasts from analysts. Oil prices are roaring back to the 133s on supply concerns. Now there are reports China is hungry for diesel oil to help cover the problems it's having with a lack of coal for power plants. AAA reported price for gas at the pumps is up to 3.88. Prices may get near $4 during the Memorial Day weekend.
JPMorgan (JPM), a Dow stock, down 57¢, on news of layoffs to make room for Bear Stearns people. There are indications of more layoffs to help it get thru the credit crisis. Banks are weak on the news (check BAC on the right). Bloomberg News reported that the Attorney General of CT is investigating Moody's to see if there is any connection between their AAA rating screw up, computer glitches, investment bankers, etc. He said the rating agencies are cooperating with the investigation. This could be another tough day in the markets going into the long weekend.
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