Late day selling limits market gains

Stocks had a good day, spending it in higher territory. However, selling in the last hour cost the Dow 50 points. Dow ended up 46, advancers over decliners 5-2 & NAZ was up 25 (a very good day). Banks recovered some of the ground they lost this week, big name banks were up 3-4%.

S&P 500 FINANCIALS INDEX

Value 158.57

Change 6.07

% Change 4.0%

MLPs have been selling off this week but today were able to halt the decline, up .93 to the 209s. REITs & junk bond funds also found buyers. Even oil was up 48¢.


Alerian MLP Index --- 2 weeks





A chart below shows the VIX, volatility Index, over the last 3 years. Today it's down 2+ to the 31's, another low for 2009. The chart below gives a longer term perspective showing that it is above traditional standards. This year's decline suggests that markets are becoming less fearful & chaotic.


VIX ----- 3 years





There have been a lot of companies selling stock recently. The most highly publicized were the banks to be better prepared if the financial markets got even uglier. Regular companies have also sold stock (& bonds). Many MLPs, REITs along with regular companies have been selling shares to pay off debt and/or improve the balance sheet. Today, MGM Mirage (MGM) raised $1B. There are good & bad points. It's important to get financing while its available in these uncertain markets. But dilution of future earnings generally follows. The stock market may be getting worn out supplying new financing to the stock market.

• MGM Mirage completes $1B public stock offering
  2:01 pm - AP

The Chrysler-Fiat alliance should get approval by the FTC, one of the key elements for Chrysler to return as a going business.

Fiat-Chrysler Deal Will Be Cleared by U.S., FTC Says


Markets did not decide much today. Dow broke thru to 8K+, but hasn't been able to make headway since then (after starting 2009 at 8776). S&P 500 is doing a little better, down only 10 YTD.


Dow Jones Industrials --- 1 month