Markets are still trying to figure out what is going on in this confusing financial mess. Dow rose 93 but decliners are barely ahead of advancers & NAZ was about even despite the 1.35 pop for Yahoo (YHOO) on growing speculation Microsoft (MSFT), a Dow stock, might buy them. The averages I follow are only modestly changed, even VIX is down 1½ (small change in comparison to recent times). Oil is also flattish.
Wholesale prices plunged 2.8% in Oct, the biggest drop in 60 years. While a major decline was expected, this beat expectations & follows the sharp drops in prices for oil & just about every other commodity. However, core inflation, prices excluding energy & food, rose 0.4%, higher than expected. The drop in prices is what is called "demand destruction" in Asian trading, further declines in the next few months are expected.
•U.S. Producer Prices Plunge 2.8%, Most on Record, as Global Demand Shrinks
Ben Bernanke & Henry Paulson are defending to congress that they really know what they are doing in a make it up as we go along world. I suppose they are doing the best anybody can with these seemingly unsolvable financial problems, but cures remain in the distant future.
Paulson, Bernanke Defend $700 Billion Bailout on Capitol Hill- AP
Better news on the corp front, Hewlett-Packard (HPQ), a Dow stock, gave glowing guidance for the qtr just ending Oct 31 sending the stock up 3.38. Home Depot (HD), another Dow stock, gave a common story, earnings were down but beat analysts forecasts, stock up 1.32
Time for a break. Last night we saw "Second Chance Harvey" with Dustin Hoffman & Emma Thompson. My friend liked it a little more than me, she always goes for the romance films. After the movie, Dustin & Emma told us how they made the film & what it was like working with each other & the director. It should be out soon for those who want to see it.
Unless there is a major news announcement today, markets may continue to muddle along with the the downward bias. The Dow is close to 8K, looks like it is ready to be tested again.
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