Wednesday, July 30, 2008

Stocks & oil soar

This was a very good day for many investments. Dow was up 186, advancers over decliners 2-1 but NAZ rose only 10. NYSE volume was just under 1½B, medium but not great on one of those rare days where stocks, led by banks & oils, each had good gains. The Bloomberg Financial index had was up, trying to get back to the 302 high last week. By way of comparison, its all time high was 482 last year:

S&P 500 FINANCIALS INDEX ........... 293.13 ....... up 5.76 ......... % Change ..... 2.0%

Oil had one of its best days in some time:

CLU08.NYM.....Crude Oil --- Sep 08 --- 127.01 --- up 4.82 (3.94%)

The weekly report had inventories decline over 3MM barrels, anything sets off this market. In sympathy, oil stocks rose sharply. Exxon (XOM) & Chevron (CVX), Dow stocks, each had gains over 3 ahead of their earnings reports in the next couple of days. The Alerian MLP index rose 6, one of its best days ever. One MLP I watch (on the right), Enbridge Energy Partners, was up 3 for the stock & over 2 for the units (probably its best day in history). This was fueled by buying ahead of distribution (99¢) at week's end. However, REITs pulled back on this otherwise up day.

Hard to say what got buyers all excited. The jobs report this AM was pretty good but it doesn't necessarily tie with the reports issued by the Dept of Labor, like the one due later this week. Oil should have been a downer, but not today. Banks are soaring, maybe buyers feel the moves by the FED will save troubled banks. The FED extends emergency measures & Pres Bush signed the housing bill.

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