Energies lead Dow surge

Dow rose 413 closing at the high, taking it clearly above 9K. Advancers were over decliners better than 4-1 & NAZ was up 58. Today's gains were led by 2 Dow energy stocks. Chevron (CVX) & Exxon Mobil (XOM), each rose around 7 from oversold levels (lowest levels in 3 years) & with P/E ratios of 7 & 9 respectively. An expected production cut in oil is a key factor for higher prices. Following the 50+% decline from summer peaks in oil prices, gas went down, below the $3 per gallon level, one degree of help for the ailing economy. The Oil ETF shown below tracks oil, tagging along with every price swing even though the price look different:

CLX08.NYM

Crude Oil Nov 08

....74.25

...2.40 .. (3.3%)

Oil up, gasoline prices tumble despite likely OPEC cuts- AP


Oil --- 2008 YTD






Markets may have been encouraged by the rise in leading economic indicators. The Conference Board said the forecast of economic activity rose 0.3% last month, beating the 0.2% forecasted decline & following declines in Aug & July.

• Leading indicators rise in September- AP

The Alerian MLP index probably benefited from the strong day for oils. It rose 15 to 220, one of the best days in its history. This takes it almost 70 above the lows early last week, hard to believe these are low beta securities. S&P 500 FINANCIALS INDEX was up a more modest 6. Dow Jones REIT index was up 1, still depressed after the sell-off last week. Some of the vastly oversold junk bond funds had gains, but remain depressed with dividend yields above 15%.


Alerian MLP Index --- 3 months





Google (GOOG), one of investor's darlings, managed a gain of 6 after being down most of the day to the lowest levels in 3 years. Investors are worried about future growth in a slow economy, particularly how they can continue to grow at high rates with their already high share in the profitable market for searching on the internet.

Earnings season begins in force with the Texas Instruments report. This is after hours & they just reported Q3 results, EPS was down 9¢ from last year & a penny under estimates. The stock was up pennies based on gut reactions. They said revenues should decline substantially in Q4 from weak orders, so they will have to retrench. More of the biggest companies will be be reporting in the next few days.

TI reports financial results for 3Q08