Wednesday, September 3, 2008

Mixed stocks from mixed news

Oil prices continue to lead the news, but fluctuations are settling down after the first storm passed (2 new ones are trying to get organized in the eastern Atlantic). A quick assessment says damage is not widespread. Exxon-Mobil (XOM) & Chevron (CVX), the 2 Dow oil stocks, are each up about 1%. Oil slipped another $1 to the 108s. The Alerian MLP index is down 1 to 270.


Crude Oil Falls for a Fourth Day as Gulf Platforms Escape Hurricane Damage


Without a lot of excitement, stocks are little changed. Dow & NAZ are even with advancers slightly ahead of decliners. S&P 500 FINANCIALS INDEX in line with the general stock market is up only pennies to 291.

Factory orders increased 1.3% in July & June numbers were revised upward giving a muddled picture about what kind of recession the US economy is in:

U.S. Factory Orders Increased 1.3% in July, Rose 1.0% Excluding Transport

The story about Coca Cola (KO), another Dow stock, buying the largest beverage company in China was widely reported on CNBC- Asia last night. They are paying triple the market for the stock to increase their access in the China market. More such stories from multi-nationals should be expected.
The Lehman (LEH) drama continues to play out, KDB may take a stake. Their head ran the Korean office of Lehman until a few months ago, so there is a strong tie. Two Chinese banks are also taking a look at Lehman. The problem is trying to evaluate their assets, nobody really knows what they are worth.

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