Buyers pulled back on more glum economic news such as Circuit City filing chapter 11, AIG needing even more money for their bailout, Fannie Mae recording a bigger than whopper size loss & GM dropped 1 to 3.39 on predictions it may not have enough cash to last thru next month (their days as a Dow stock are numbered).
•Circuit City Files for Bankruptcy Amid Competition From Best Buy, Wal-Mart
•Fannie Mae Posts Record $29 Billion Quarterly Loss After Asset Writedowns
•AIG Bailout Swells to $150 Billion as Insurer Reports Fourth Straight Loss
•General Motors Plummets After Deutsche Analyst Cuts Price Target to Zero
S&P 500 FINANCIALS INDEX dropped 3, the Alerian MLP Index was even but the Dow Jones REIT Index dropped 7 to 151 (maybe heading for the recent low of 135). The VIX, Volatility index, was up 1½ to 57.60 continuing in astronomical territory.
China's plan for spending is supposed to help the world's economy as they are a big player. They will be spending on infrastructure: roads, bridges, housing & repairing damage form the earthquakes. However, they may be already spending on some of the projects in the plan. China envisions this will take a couple of years to complete. Financing the plan was not addressed. The most directly impacted will be metals. Metals were strong but oil was little changed:
| CLZ08.NYM | Crude Oil Dec 08 | ....61.46 | .... 0.42..... (0.7%) |
Retailers will be reporting Q3 earnings later in the week, expectations are bleak.
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