Dow down on indecisive day

Dow was trading under water all day. After sinking around midday, a PM rebound brought it back to only a 64 loss, decliners led advancers by 30% & NAZ managed a nice gain of 18 (better than 1%). The biggest changes in the Dow were Verizon (VZ), up 1, & Boeing (BA), down 1+.


S&P 500 FINANCIALS INDEX was up pennies although Bank of America, still in the Dow, was down 9% to only 6.

The Alerian MLP Index waffled around the 200 line, managed a small gain so it could hold 200. However many MLPs were down. Other high yield securities were mixed in this indecisive trading. The VIX was up .71 into the 45s.


Macy's (M), one of the largest retailers, is cutting across the board. 7000 workers plus salaries, bonuses, stores & DIVIDENDS (down to only a nickel per qtr) were cut as they said same-store sales will be down 6-8% in 2009. Stock is down 36¢ to 8.59. This story will be repeated & repeated, the biggest are not exempt. The next news item was Morgan Stanley (MS), up 3%, after reporting its lowest profit in 13 years & cutting almost 2K jobs.

•Macy's Will Fire 7,000 Employees, Cut Dividend to 5 Cents, Buy Back Bonds
•Morgan Stanley Said to Be Planning Up to 1,800 Job Cuts After Profit Drop


Moves in oil are primarily linked to the outlook for the global economies, as a result, down. It's on defense & a sub 40 contract, like the last one, is likely.

CLH09.NYM

..Crude Oil Mar 09

..40.46

... 1.22 .......(2.9%)

The senate is expected to vote on the stimulus package tonight. They are likely to pass a bill but it will be different than the house bill. That means a lot of haggling to blend the bills. Also the Treasury Dept will come up with a new plan to straighten out the mess the current one created. Maybe they'll do better this time!

• US Treasury to unveil new bailout plans next week- AP