When Shanghai sneezed, Wall Street caught a cold

A slowdown in the Chinese economy impacting the globe caused markets around the world to sell off. But a late day rally trimmed those losses. Dow dropped 47, decliners over advancers 3-1 & NAZ was off 19. Banks held pretty well with only a modest decline. But recent flyers were hit, AIG (AIG) was off 4.90 (buying at day's end cut the loss by $1) & Citigroup (C) fell 23¢. These are available for those who like playing with fire.

500 FINANCIALS INDEX

Value 197.37

Change -0.76

% Change -0.4%

S5FINL:IND





AIG --- 1 month




Citigroup --- 1 month





MLPs & REITs pulled back in line with ordinary profit taking. The MLP Index was off 1 to the 238s & REITs fell 2, both finishing off their lows. Junk bond funds were mixed but Treasuries rose in value. The yield on the 10-year Treasury bond dropped 5 basis points to 3.40%, its lowest level in over 3 months.


Alerian MLP Index --- 6 months




Dow Jones REIT Index --- 6 months




10-Year Treasury Yld Index - 6 months





Oil fell below 70 on worries about less demand from China if their economy slows. They are the biggest buyer of oil after the US.

CLV09.NYM

..Crude Oil Oct 09

..69.63

.. 3.11 ......(4.3%)

Simple worries move stocks in light trading. China has become a major player in the world economy, when it sneezes it gets a lot of attention. Wall Street took China worries in stride.


Dow Jones Industrials --- 6 months