Markets drift lower

Dow started down, but recovered going into midday. Dow is down 84 (just above the 8K floor), decliners over advancers 2-1 while NAZ rose 7. The S&P 500 FINANCIALS INDEX is up marginally after its recent drubbing. The Alerian MLP Index & Dow Jones REITs are each up 2 while Barclays Capital High Yield Bond ETF is down 1%. However, VIX rose 2 to 49 & sharply off its lows under 40 at the start of the year. The strength of the MLP index holding above the 190 floor continues to be impressive.


General Electric (GE), a Dow stock, reported dreary earnings as they had warned, stock down 67¢ taking it into the 12s. This 13 year low brings the yield up to almost 10%, plenty of risk is being priced into the stock. GE reaffirmed its intention to (only) maintain the div & hold on to its coveted AAA rating.

•General Electric Profit Declines 43% as Immelt Backs Dividend, AAA Rating


Pfizer (PFE), a Dow stock & Dividend Aristocrat, is trying to buy Wyeth (WYE). Pfizer is down 34¢ while Wyeth is up $3. Pfizer has just 3 years of patent protection left on Lipitor, which accounts for about ½ its profits. Such an acquisition is intended to help them get thru the post patent protection period.

•Pfizer Is in Talks to Buy Wyeth as Lipitor Competition Threatens Revenue


Corp earnings keep coming & by & large they're depressing:

• Xerox 4Q profit plunges, misses Wall Street view- AP
• Schlumberger 4Q tumbles; sees rough year ahead- AP
• Harley to cut 1,100 jobs as 4Q profit falls- AP

Today is shaping up as an uneventful day for trading. But Dow is close to its important floor, late day selling taking it below would be a very negative sign. Congress & the president are working on a stimulus package. It all will be in the details.