Mideast worries sink stocks

In thin trading, Dow dropped 82, decliners over advancers 2-1 and NAZ fell 27. Conflict in the Mideast is making the markets jittery. However, oil did not rise as much as would have been the case during its rally last summer. The Alerian MLP Index was flattish, although MLPs I watch were down.

CLG09.NYM

...Crude Oil Feb 09

....38.20

... 0.49 .......(1.3%)

• Oil rises on Gaza conflict- AP

Grim news for retailers. Same store sales (stores open more than a year) may have seen holiday sales decline as much as 2%. Too many stores are open, there may be as many as 12K branch closings this year. That caused the Dow Jones REIT Index to drop 7 to 139 (not far from its sub 100 low). Somewhat related, Lehman High Yield Bond ETF plunged 1.25 on greater fears for junk bonds. The VIX, Volatility Index, jumped 2¼, on greater market anxieties.

•Store Closings, Bankruptcies at U.S. Retailers Forecast Amid Sales Debacle


The S&P 500 will have its worst year since 1931. Further declines such as today could make it the worst year ever. Market pains have been worldwide, foreign markets generally did worse. The Hong Kong market is down about 50% & Shanghai must be down 70% (after the prior year's stellar rise). Speaking of an ugly year, S&P 500 FINANCIALS INDEX had a brutal year:

12/31 07.......392
Today...........156


S&P 500 ---- 1 year