After a strong start in the AM, markets drifted south for much of the day. The Wyeth (WYE) buyout sounded good, but dreary earnings & fears of more such news got the better of the markets. Dow rose 38, but down from its peak when it was up 150 early in the day. Caterpillar (CAT) & Pfizer (PFE), 2 of the big news-makers, were the biggest weights on the Dow, down 3½ & 2 respectively. Advancers were over decliners 2-1 & NAZ was up 12.
The Alerian MLP Index, a standout story, jumped out of the gate & remained above 200 all day despite the gloom in the markets. MLPs were helped by distribution increases where they were expected. 200 was an important psychological ceiling, now the test will if can be reversed to a floor (a 5 day graph of MLPs is also shown in the Yahoo stock widget on the right):
Alerian MLP Index --- 2 days
Otherwise, the S&P 500 FINANCIALS INDEX was down a couple as bank stocks remain in the dumps. REITs & junk bonds were mixed while VIX dropped 1½ to 45, still at an elevated level. Oil slipped a little.
The Alerian MLP Index, a standout story, jumped out of the gate & remained above 200 all day despite the gloom in the markets. MLPs were helped by distribution increases where they were expected. 200 was an important psychological ceiling, now the test will if can be reversed to a floor (a 5 day graph of MLPs is also shown in the Yahoo stock widget on the right):
Alerian MLP Index --- 2 days
Otherwise, the S&P 500 FINANCIALS INDEX was down a couple as bank stocks remain in the dumps. REITs & junk bonds were mixed while VIX dropped 1½ to 45, still at an elevated level. Oil slipped a little.
CAT's negative guidance for 2009 may be repeated by many other big industrials. More Dow stocks will be reporting this week. Meanwhile, congress & the new administration are working on a political stimulus package. Last year's went thru congress in a couple of weeks, this may take longer. Job layoffs keep coming & they will be an important consideration shaping a stimulus package. 74K were announced today bringing the total for JUST this month to 150K. Let's hope that the stimulus package will get it right even though the TARP program already seems to be broken. Dow still can't climb very far above the 8K floor while it waits.
•Caterpillar, Home Depot, ING Among Companies Cutting Total of 74,000 Jobs
•Caterpillar, Home Depot, ING Among Companies Cutting Total of 74,000 Jobs
1 comment:
HI Avi,
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Its called the wikinvest wire and you can read more about it here:
http://www.wikinvest.com/blogger/Wikinvest_wire
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