| CLU08.NYM | Crude Oil Sep 08 | 119.74 | 1.67 (1.38%) |
Traders worry that a weak economy in the US (not to mention the rest of the world) will reduce demand. We've been thru this before, but maybe this time reality will sink into the markets. For the 2 Dow stocks, Exxon Mobil (XOM) is up 70¢ while Chevron is even on these lower prices. Going along with lower prices, the Alerian MLP index is down one to the 261s, barley into new 52 week low territory.
The service sector did not do well in July, but that beat expectations. The reading was 49.5 up from 48.2 in the prior month & beat the 49 number forecasted, helping to bring out stock buyers today. However below 50 signifies contraction.
Procter & Gamble (PG), a Dow stock & very long time member of the S&P Dividend Aristocrat list, reported excellent earnings sending the stock up almost 2. They also raised their guidance for 2009 (beginning in July) slightly. Better than expected earnings were helped by raising prices & strong businesses especially in emerging countries. We hear a lot of that.
This rally could be a variation of "buy on the rumor & sell on the news." We'll see how it plays out in the PM after the FED meeting.
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