Higher oil prices send stocks lower

The headline seems like a common refrain. Dow is down 109 (after a slight recovery on the close), decliners over advancers almost 3-2 while NAZ was down only 2. NYSE volume continues quiet at 1.2B. Last week gasoline inventories fell 6.4MM barrels or triple the number forecasted. Oil jumped 3 on this good news for oil & oil stocks. Never a dull moment with oil:

CLU08.NYM

116.10

3.09 (2.73%)

Higher oil prices is not bad news for all stocks. Oils rallied nicely today & the Alerian MLP index was up 2½ to about 265. 262 had been its low which was breached last week. Since then it has been muddling slightly above. Some call this base building, but that's been said before. Storms brewing in the eastern Atlantic Ocean could produce 2, maybe 4 tropical storms. That always brings excitement to these units. Their high yields may be getting lost, 8-15% yields are common today. Limited partners have to put up with some tax hassle but high yields with a low beta index attracts the brave.

Financials continued to bleed, leading the decline, following yesterday's rough news:

S&P 500 FINANCIALS INDEX

Value 275.59___Change (8.42)___% Change (3.0%)

Bigger picture, they continue to waffle under 300, but above the 232 low of July 15.

This is an election year prompting Dems in Congress to push for another stimulus package given the early glum news in Q3 for the economy. The Bush administration has opposed the idea, being concerned about implications for the budget deficit which could reach a record $482B. Tropical storms, fighting between Russia & Georgia, more fiscal stimulus, never a dull moment in the markets.