Mixed markets on auto company worries

Stocks initially fell & have been hugging the break even line since then. Dow is up 25, decliners over advancers 3-2, & NAZ is even. Banks are soft on growing worries about the fate of the the 2 big auto companies.

S&P 500 FINANCIALS INDEX

Value 145.29

Change -1.92

% Change -1.3%

MLPs continue strong while Dow (reflecting ordinary stocks) has been flat in Apr. The index is up 2 to 209 & up sharply from 191 where it ended Mar. REITs are weak while junk bond funds are mixed at best.


Alerian MLP Index --- 1 month




Demand for oil is off, taking it back below 50:

CLM09.NYM

...Crude Oil Jun 09

...49.73

... 1.82 .......(3.5%)

General Motors (GM), is fighting hard to stay alive. It's shedding the Pontiac car, dealers, laying off more workers & hoping that 90% (to avoid bankruptcy) of the bondholders will swap a $1000 bond for 225 common shares. Existing shareholders will own 1% of the new GM. If the gov swaps its debt for common, it will own about half the company although they claim they have no interest in running the company. OK! Meanwhile, Chrysler worked out agreements with its unions in the US & Canada. Now it has to hope their stock for debt swap is successful & complete a partnership deal with Fiat. This has to be accomplished by the Apr 30 deadline. The 2 clocks keep ticking.

•GM to Increase Job, Dealer Cuts, Offer Swap to Reduce Debt by $44 Billion
•Chrysler Reaches Labor Agreement With U.S. Union, Ratification in Canada


The swine flu has gotten big very quickly. There are growing worries about it spreading in North America. It's also taken very seriously in Asia, they have memories of Severe Acute Respiratory Syndrome (SARS) 6 years ago which heavily damaged many of their economies. Generally drug related stocks are up on this news.

•Novavax, BioCryst, Gilead Rise on Products That May Fight Swine Flu Spread


Earnings season is winding down. But fate of the 2 autos & the potential for swine flu spreading will be driving forces for the markets.