Dow's performance led the other averages I follow, selling off in the first hour & then steady for the remainder of the day at the reduced level. VIX pulled back slightly from it's high but still jumped 5.87 to 49.14. Growing fears worry markets. Oil continues to slide downward, in the 37s, on gloomy economic news
General Electric (GE), just another big Dow stock with big problems, pulled back into the 14s near it's recent low, taking it's value back to 1996 levels. GE will release earnings next week, markets are already preparing to be disappointed. This is an S&P 500 Dividend Aristocrat. Last year in announcements regarding the div, GE only said that it would be maintained. Their last increase was Q4 in 2007, thus 2008 was another record year for their div. Unless they increase this year, they will lose their standing as a Dividend Aristocrat. In addition, they are still working to maintain the coveted AAA debt rating (only a handful of companies remain in that elite group).
General Electric --- 3 months
General Electric --- 28 years
Speaking of divs, MLPs will try to increase Q1 distributions. In the next couple of weeks, most announcements will be made for Q1. 2 announced increases last week. Today, Plains All American Pipeline (PAA), announced a Q1 distribution the same as the Q4, 2008, annualized rate of $3.57 & is above the $3.40 rate in Q1 2008. I count a year over year increase as a baby increase. More will probably try for increases. However, some are selling in single digits. They are struggling to keep the existing distributions. There is still time to place bets for the adventuresome.
A second judge ruled that Madoff can remain free (confined to his apartment) awaiting trial.
•Madoff Has Bail Ruling Upheld, Will Remain Out of Jail Pending Fraud Trial
Earnings season will be in full force next week. Lower markets suggest that GE is just one of many companies expected to disappoint.
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