Higher oil prices sent stocks lower. Dow started down 100 but rallied to near break even. Decliners lead advancers 3-1 & NAZ is 18 points lower. Tough to explain Dow's better performance but Coca Cola (KO) is the big the big winner, up 1.68. Exxon (XOM) & Chevron (CVX) both slipped back on higher oil prices. Oil rose 3 to top 137 on the usual worries, higher global demand & supply concerns. The president of the Boston FED reserve said higher energy & food prices are trickling through into inflation numbers. The slowing economy may cause prices to trend down, but that was amended with a "maybe." FED Reserve Chairman Ben Bernanke hinted that the FED might have to raise interest rates to fight inflation. From zero on the radar screen of traders, that has risen to a 50% chance.
Kirk Kerkorian's offer to buy 20MM Ford (F) shares drew an overwhelming response. More than 1B shares (nearly half of all shares) were tendered, easily allowing him to buy all the shares he wants. Today Ford is 6.08, down 28¢. At the big picture level, I think this tells a lot about today's markets.
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