Lehman problems worry markets

Lehman (LEH), down 2.81, problems continued to be a drag on the markets. Dow was up 70, but decliners outnumbered advancers 2-1 & NAZ was down 15 on 1.35B volume (a little below average). Dow was helped by McDonalds, Alcoa & the 2 oils (Chevron & Exxon). Oil was down 4 to 134, but at these levels the decline didn't have a major influence on the markets. Financials were weak, check BAC & USB on the right. Timothy Geithner, FED Reserve Bank of NY President, said there is need for more regulation of the largest banks & investment banks. Read the attached summary of his comments, the markets sold off while he was speaking. Meanwhile the Alerian MLP index only pulled back ½ a point, not bad. It's getting a lot of support just above 290, probably helped by the high oil prices even though their effect if anything might be negative for pipeline companies.

This was a very disappointing day for the bulls. Instead of the sharp sell-off, markets remained soggy. They largely had an off day, the kind which may be repeated. Banks are getting hammered & hard. For the brave, the high yields will be attractive. The trick is to separate the wheat from the chaff in the bank stocks.