Higher oil sends stocks lower again

Higher oil prices are taking their toll on the stock markets. Dow is down 150, decliners over advancers 2-1 & NAZ is down 29. Oil is up 3½ to 135 (after a 3 point drop yesterday), gas at the pump topped 4.05 yesterday. Some blame volatility on currency trading, first the dollar's strong & today it fell back. Nobody knows, but it looks like we're getting using to oil at a very ugly price around 130. No announcements from Europe on changes like actions to strengthen the dollar, probably reflected in the dollar's decline today after recent strength.

Mortgage applications rose 11% last week, I guess that little piece of data is good. But there are growing worries about all loans. Auto, credit card & prime loans, among others, are encountering more problems. While not as bad as sub prime, they come from a larger base. Early signals are that these problems will plague markets, maybe even today. Washington Mutual (WM), the largest S&L, is down 83¢ to 5.83. along with about all major lending institutions. Here is their ugly chart:



Lehman (LEH), down 2.15, may yet have to seek additional financing from Korean partners. I am reminded of the cockroach analogy used, when you see one that may be an indication there are many around you can't see. That seems to be playing out for financials.