S&P 500 FINANCIALS INDEX set another new multi year low:
| Value 166.99 | Change -12.39 | % Change -6.9% |
The indices I follow got slammed very hard. The Dow Jones REIT Index is touching a new multi year low, falling 10¼ to 131. The Alerian MLP Index dropped 9½ to 192. This is an unusually large drop for it, even on a terrible day like today & it's solidly below 200, probably headed to test the lows of 155 (which were aggravated by forced selling after the demise of Lehman). The VIX shot up 5.16 to 66.60, fears rose sharply.
Oil keeps falling on continued worries about a severe global recession:
| CLZ08.NYM | Crude Oil Dec 08 | ....55.89 | .... 3.44 (5.8%) |
A quickie auto $25B bailout package received White House approval, it will be folded into the $700 bailout program the Federal Reserve is working with.
•Frank Plan Would Give Automakers Extra $25 Billion Through Treasury Funds
American Express (AMX), a Dow financial company, became a bank yesterday (i.e. on a moment's notice). It looks like they are getting hit hard with bad debts from the cardholders, requiring a $3½B investment from the gov. This is now a $20 stock, hard to believe:
- American Express shares plunge on bailout reportAP(Wed 2:14pm)
General Electric (GE), another Dow stock, will guarantee $139B of the debt for GE Capital . Can you spell, "Uh-oh?"
•GE Says U.S. Will Guarantee Up to $139 Billion in Debt for Lending Unit
Las Vegas Sands (LVS) received a big financing package from Asia plus over ½B loan from the Adelson family to remain alive for the time being.
The Treasury had plans to buy troubled mortgages yesterday but that had to be abandoned after complaints that it wouldn't help. Hello!!! What's going on here? Maybe I'll have to check in with Chicken Little tonight, it seems like the sky is really falling. OK, we'll get thru this mess but over the short term life is brutal which is causing stocks to sell off.
The level of redemptions at mutual & hedge funds is important, I have a feeling they are running very high again which means fund managers will throw more stock out the window, maybe they were doing it today. When confusion & chaos are in charge, stocks get hit hard. The Dow low on Oct 27 was 8175, that needs to be tested & probably tomorrow.
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