Dow falls to another multi year low

Markets tried & tried this morning to push up, but failed. Sellers arrived by midday taking prices lower in the PM. Dow fell 80, decliners over advancers 5-2 & NAZ dropped 25. NAZ had a shot at 3K a couple years ago but failed. It had been doing well in 2009, but fell apart in the last 30 days.


NAZDAQ --- 1 decade




S&P 500 FINANCIALS INDEX went up 2 to 83, spending much of the day only modestly above the Fri low. The Alerian MLP Index dropped 1.60 to the 166s as MLPs are having trouble finding friends. REITs were flattish if you can say that when they are down in the dumps. Junk bond funds were weak & VIX inched up over 50, where it's been for most of the year.


Oil has been languishing in the 40's (& even the 30s) for a few months. Today's price is a new high for the year, maybe it's getting ready for another leg up. It's about to the enter Mar15-Apr15, a traditionally favorable time for oil prices. But dreary worldwide economic news will probably keep a lid on future price gains. While oil has been going up, gold has had a tougher time getting off the interim floor in the low 900s.

CLJ09.NYM

..Crude Oil Apr 09

..47.10

.. 1.58 ......(3.5%)

ZGH09.CBT

..Gold 100 oz. Mar 09

..916.10

.. 26.00 ......(2.8%)

• Oil prices hit new highs for the year- AP

Citigroup (C), now just another call option for those who want to play with fire, has been hanging in there just above 1. Being literal, it was up 2 pennies to 1.05. For those who like placing bets, it's worth a try. Any bullish whim can cause it to double in a day or 2, like any other call option. And shortly the Mets will be playing in Citi Field. Of course for a $20 bill, you can get 1 share each of 5 Dow stocks (AA, BAC, C, GE & GE) & receive change.

When financials meander going nowhere, markets will continue weak. Dividends are another important measure of stock values. After going thru a brutal period of div cuts, more pain is coming. The article below mentions more companies likely to cut divs including AT&T (T) & DuPont (DD), 2 Dow companies with 7½% & 10% yields respectively. T goes back to the beginning of the telephone business & DD has been in business for more than 200 years. Such thoughts will not bring disappointed investors back to the markets. And all div cut announcements bleed thru to other high yield securities.

AT&T, 19 Others Likely to Cut Dividend, JPMorgan Says