The Alerian MLP Index began the year with a gain of 6+ taking it above the 180 line. In the old days (say a year ago), that was an eye popping performance. In recent times it is considered routine. The S&P 500 FINANCIALS INDEX & Dow Jones REIT Index are flat while Lehman High Yield Bond ETF is off fractionally. The VIX, volatility index, is down another 2 to 38. A sense of calm is returning to the markets, at least for the time being.
Oil is down on a light day in trading.
| CLG09.NYM | ...Crude Oil Feb 09 | ....44.17 | ... 0.43.......(1.0%) |
The manufacturing index in Dec fell to the lowest level in 28 years. The reading of 32.5 was 3 points below expectations. By way of comparison, 50 signifies contraction! Expectations for Jan can only be dreaded.
•U.S. Manufacturing Shrinks at Fastest Pace Since 1980 as Recession Spreads
Dismal economic news didn't prevent world markets from beginning the new year with gains, but on thin trading.
Little should be decided today. However, the very strong start for MLPs going above 180 is a positive signal for the index. Next week, news stories will resume driving markets.
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