Dow barely extends winning streak to 3 days

Markets tried to figure out which way to go today as they were trying to make it 3 days in a row for gains. Dow rose 36, advancers over decliners 2-1 while NAZ pulled back 7. The buyers have clearly run out of steam, maybe it's a holiday thing.

S&P 500 FINANCIALS INDEX managed a gain of 4 to 157, the other indices had only modest changes. However, junk bond funds rose again as those 20+% yields were just too attractive for the bargain hunters.

Oil sold off taking it near its 3 year lows achieved a couple of days ago:

CLF09.NYM

Crude Oil Jan 09

...51.02

.. 3.48 .......(6.4%)

Cisco (CSCO) announced it will close 5 days at the end of the year to save $1B, just one more indication of how tough this economic slowdown has become. .

•Cisco Plans First Year-End Office Closure in More Than Decade to Cut Costs


I just noticed an old time favorite, Walgreen (WAG). They're gotten clobbered in the last 3 months like most other stocks. This is an old line drugstore chain my mother used to like shopping in. They are an S&P 500 Dividend Aristocrat. While their dividend yield is only 2%, they can be counted on raising it every year with the low payout ratio. Walgreen's has a P/E of 11 which provides excellent coverage. They're an example of a number of excellent companies whose stocks has been punished badly in the bear market but don't deserve this kind of treatment.


Walgreen --- 10 years




Holiday malaise looks like it's setting in. Even the VIX pulled back 4 to under 61, but remains in very high territory. With limited trading for the rest of the week, there may not be a lot of wild price swings helping to bring the VIX lower even if it's only for a brief period.