Markets await developments

Dow began the day strong as it was trying to get back over 8K. After a 100 point surge, it slipped back to up 47 with a lot of bouncing around. Advancers were ahead of decliners 3-2 & NAZ was up 6. Even banks were up on hopes for bailout II, S&P 500 FINANCIALS INDEX rose 4.

Averages I follow traded sideways, although the Dow Jones REIT Index dropped 2. They may have more at risk than others right now.

Other news means little while waiting for news on the stimulus package, not to mention bank bailout II. The 3 Rep senators who provided the margin for the senate bill to pass want to see the final cost under $800B, no mean feat. There will be plenty of horse trading going on.

•Stimulus Bill Talks Bring Demands to Get Final Measure Under $800 Billion

Markets were greatly disappointed by testimony from the Treasury yesterday. The idea that "the plan" was to "avoid mistakes" was not a source of confidence building. After the sell-off in NY, markets fell worldwide.

• World stocks fall on skepticism over US bank plan- AP

Meanwhile corp news keeps coming & it's largely dreary. Research in Motion (RIMM), BlackBerry-maker, disappointed investors with their outlook that earnings may come in at the low end of the range they had given. They are feeling the effects of the recession. Stock dropped 10 to 47.

• BlackBerry-maker RIM outlook disappoints- Reuters

There's not a lot to do while stocks meander aimlessly. DC is center stage & everybody is watching. Bank execs will testify to a congress that is in an ugly mood, probably won't encourage buyers to come out of the woods. Here's a reminder of the Dow YTD, not pretty. Worse, 8K is switching from a floor to a ceiling.


Dow Jones Industrials --- YTD