The S&P 500 FINANCIALS INDEX is up 3 to 270. As traders wait for more word about Fannie Mae (FNM)/Freddie Mac (FRE) & their future, they are down another 20% maybe heading for zero. Still hard to believe, just a couple of years ago they were thought of as AAA companies because of their huge mortgage loan portfolios (AAA kind of debt). Plus gov backing was there to solve problems. Times change fast. Asian/Australian markets half way around the world are watching developments which impact their banks. This is one ugly mess. Last night on CNBC-Asia, 2 analysts were recommending that one or 2 big banks should be allowed to fail here as a way of cleaning out the credit mess. A few months ago at a conference I heard much the same thoughts, the FED should have allowed Bear Stearns to go under. These debates are keeping a lot of potential buyers away from financials.
EEQ Enbridge Energy Management
This chart for Enbridge has an interesting story. This is the stock equivalent of EEP, their basic MLP unit. However, each share does nothing. It's backed by one unit & pays out only a stock equivalent div making it friendly to retirement accounts & tax statements, since there is no 1099 needed for a stock div. Yesterday on the opening, the stock dropped 1 on just 3200 shares (out of total volume for the day of 22K). I follow this stock in my Finance widget, it hardly moves. The last year has been tough on MLPs, but it has not strayed much from 51. But yesterday somebody sold quickly at a big discount. The only other MLP to have a stock equivalent is Kinder Morgan, again shown in my Finance widget.
Hewlett-Packard, HPQ, (a Dow stock & #1 in computers worldwide) reported good earnings, up 2+. Laptops sold very well & they were aided by the weak dollar. BJ's had good earnings, but slipped 3 on those familiar "worries about the economy." They should do OK. My friend is one of their customers, she buys a lot at BJ's.
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