Dow rose 127, advancers ahead of decliners better than 3-2 & NAZ was up 46. Reasoning for the gains seems fuzzy, maybe they're glad the sky didn't fall. Consumer Confidence rose to 51.9 (a little above many estimates), up 0.9. That still sounds grim. The original number for the prior month was 49, the lowest level since 1992. An analyst says Citigroup (C) will write-off $8B in Q3 related to its CDOs (collateralized debt obligations), the stock is little changed today. They have $22½B in CDOs & will sell these loans for 22¢ on the dollar. Merrill Lynch (MER), is down more than a dollar after announcing its large write-offs & the need for more financing. They have credibility problems following all those recent statements about not needing more capital. Believe it or not, most banks are higher, maybe this is a kind of a relief rally. For example, Bank of America,(BAC) is up over 1 dollar to above 29 after its recent sell-off from the interim high of 34.
Oil fell over 1 to the 123s on worries about a global slowdown in demand. There is a lot more discussion of that concept, especially from Asian markets. Energy companies have just started reporting earnings, & they are expected to be very good. Exxon (XOM) should report in a couple of days. The Alerian MLP index is down 2+ at 265, hovering just over the 262 low which has held. Keep in mind that last year 282 held but did not last.
For the bulls, enjoy today!
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