Dow Jones Industrials has had one of the wildest 5 periods in some time. But after the initial reaction adding 800 points in 2 days, enthusiasm is dwindling rapidly:
DJI -- last 5 days
Oil pulled back on profit taking after the big gains yesterday:
| CLX08.NYM | Crude Oil Nov 08__ | ..106.90__ | .. 2.47--- (2.3%) |
Gold pulled back 11 to 892, the 900 price didn't last very long. The Alerian MLP Index was down 6 to 233 (shown in the Yahoo badge on the right). Dow Jones REITs, rebounded only 2 (from being up 6 before the last hour of trading). Junk bond funds continue near the higher levels reached on Fri (with yields remaining a good 1000 basis points over the Treasury bond).
Testimony given in Congress is the main news story today. Below is a summary of what has been said already. I watched some & it looks like tough grilling but everybody realizes something has to be done to fix the mess.
•Bernanke Tells Congress U.S. Economy Will Contract If Bailout Isn't Passed
•Treasury Should Avoid Paying `Fire Sale' Prices for Assets, Bernanke Says
FDIC chief wants home loans part of bailout plan- AP
Below is what the testimony is all about & initial indications are that selling a $700B package is very tough, which it should be! Even among voters, there is only modest support for the concept of a bailout package. With all the confusion, supporters only have a modest majority. Dow sold off about 200 during the testimony in Congress, telling us how the markets are handicapping the hearings.
•U.S. House Leaders Struggle to Generate Support for $700 Billion Bailout
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