Stocks muddle along

This was another lackluster day. Stocks had been down for much of the day while not drifting far from break even. However, Alcoa (AA) & Bank of America (BAC), 2 Dow stocks with prospects of major div cuts, sold off significantly (down 51¢ & 78¢ respectively). Dow slipped 25, advancers were slightly ahead of decliners & NAZ was up 7.

The Alerian MLP index & Dow Jones REIT Index were each up about 4 after weakness in the last few days. The MLP Index is back to 195, bringing it nearer to the 200 ceiling. However, the REIT Index is still wallowing around in the mud. Junk bond funds were generally up again today as high yields are pulling in the venturesome seeking extra income.

The VIX, volatility index, dropped 1+ to 44½ but off a nice recent bounce. It's still up 6½ points in the last 5 days, reversing a 6 week downward trend which had been an encouraging sign for the bulls.

Oil is down 30% from its interim high (50+) last week. Today it rallied, the first gain in 7 days. Maybe the prospects of a big stimulus spending package brought out a few extra buyers.

CLG09.NYM

..Crude Oil Feb 09

...38.52

.. 0.93 ......(2.47%)

Chairman Bernanke said that a fiscal stimulus package may not be enough to promote lasting recovery. He called for more capital injections & guarantees to normalize credit markets. We're still in the make it up as we go along period.

•Bernanke Says Stimulus May Be Inadequate, Signals Asset Buying, Guarantees


Markets are waiting for more word on the stimulus package & additional earnings reports (which may not be very encouraging).