Thursday, June 19, 2008

Techs led stocks higher

Techs rose nicely, but the overall markets were mixed. Dow up 34, advancers equalled decliners & NAZ was up a big 32 largely on the strength of tech benefiting from the lower price of oil. Volume was a little stronger, nearing 1.3B on the NYSE. The 204 new lows on NYSE included: BAC, MOT, BBT, GE, UNH, RF, GM, NOK,& BMY. Banks continue to be well represented.

China raised regulated prices for fuel 18% which led to oil dropping 4.45 on the theory it will reduce their consumption. Although these days who knows what drives the wild swings in oil! Citigroup (C) warned more writedowns were coming for the usual reasons. Banks were weak although well off the lows around midday. REITs rebounded a little. The Alerian MLP index slipped 2.63 to the 286s, breaking decisively though the 290 barrier. The 2 Bear Stearns managers pleaded not guilty to charges which are complicated making them difficult to prove. In addition, another 400 or so lending officers have been arrested on practices related to loan activities.

Dow held 12K, but barely & remains only 63 above that support level. The Alerian MLP index broke 290, may be the start of another leg down. Tech was strong today, but the rest of the markets did not pay attention.

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