Markets hang on to early gains

Dow rose a couple hundred out of the gate & remained pretty much flat for the rest of the trading day. The negative unemployment report & threats of possible failures by the auto companies did not keep buyers away. With a 180 point rally in the last 30 minutes, Dow ended up 248, advancers led decliners by 2-1 & NAZ was up 38. The indices I follow posted gains, the best being 9.37 for the greatly oversold Dow Jones REIT Index. The S&P 500 FINANCIALS INDEX managed a gain of 3.69 after being flat much of the day. VIX declined 5.10 to 58½, probably due to the rising markets. Oil was up pennies, just under 61.

General Motors (GM), a Dow stock, reported a Q3 loss of 4.2B & said it may not have enough cash to stay alive THRU NEXT MONTH. The mighty auto industry is shaky & implications for the economy of the failure for any or all 3 auto companies boggles the mind. But markets were little concerned today.

•GM Says It May Not Have Enough Cash to Finish Year, Suspends Merger Talks


Goldman Sachs is cutting profit forecast for the S&P 500 by 10% in 2008 & 9% for next year. The are estimating this year, S&P will earn $65 & next year it should rise to $68. No big surprise.

•Goldman Cuts 2008, 2009 S&P 500 Profit Forecasts, Citing Economic Slowdown


Markets had another rough week but pulled into the lower half of the 8-10K trading range. The 11K level which used to be thought of as a floor, now is a level many would like to regain:


Dow Jones Industrials --- 2 months




John Chambers, head of Cisco (CSCO), after reporting earnings this week, said Cisco is gearing up for a very tough economic environment around the world. I think he expressed well what business people & investors are facing.