High oil prices are overwhelming all news, even bank loan problems. Oil got as high as 138, but closed in the 136s. Ugh!!! Dow was down 206, decliners over advancers 3-1 & NAZ was down 55. Volume was up a tad, but still below 1.4B, or on the low side. Low means bleeding issues has not ended. New lows dominate:
New highs 31
New lows 207
Just a few of the new lows were: WM, BAC, PFE, MER, AIG, MRK, Q, RF, NOK, BMY, MBI, KEY, M, EK. Some are Dow stocks, a lot are financials/banks. As the markets are oversold, Dow will be testing 12K possibly tomorrow. The Alerian MLP index has been hovering but holding at 290, although today, USS, an MLP which owns barges, took a big hit to only 4.65 as management is suggesting the div is in big trouble. If it's cut, there could bleeding into other MLPs. For what it's worth, junk bond funds have been hanging in there pretty well as the 10+% yields have been helping.
FED 's new snapshot of the economy, just released, is very, very gloomy. The economy is weak while energy & food prices, among others, are climbing. In recent days, FED officials have been sending signals, talking more about curbing inflation. Oversold conditions may lead to a rally, but fundamentals look bad.
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