Markets meander lower

Weak markets overseas brought lower markets in the US. Stocks sold off on the opening & have remained in the red. Dow is down 19, decliners ahead of advancers almost 3-1 & NAZ was up 8. Being leaders in the market, banks also fell but the Finanicial Index is holding above the 200 support floor.

S&P 500 FINANCIALS INDEX

Value 202.20

Change -1.74

% Change -0.9%

After having an outstanding year, MLPs have settled down in the last couple of months. The Index went over 250 & then ran out of steam as shown in the chart below. Today it's down 1½ to the 248s but remains up sharply this year. The Dow Jones REIT Index, after a slower start in 2009, keeps climbing although far below the 300+ area it enjoyed before the recession began. Today it's off 2. Junk bond funds were weak & yield on the 30-year Treasury bond fell 4 basis points to 3.44%.

Alerian MLP Index --- 2 months




Dow Jones REIT Index --- 2 months




Oil & gold are off fractionally, oil is in the low 72s while gold fell all off 2 to 1010.


A private forecast of U.S. economic activity rose in Aug for the 5th straight month, the latest sign the recession is ending. The Conference Board's index of leading indicators rose 0.6% in Aug, following a 0.9% gain in Jul (revised up from 0.6%). Economists expected 0.7%. The indicators project economic activity in the next 3-6 months. Aug results support projections that the economy started to grow again in Q3 & will continue to gain in Q4.The leading indicators index jumped 4.4% -- an 8.9% annual rate -- in the 6 months through Aug, the fastest 6-month growth rate since Mar 2004. The increase in the 6 months through July was 3.3% (further evidence the recession is bottoming out).

US Leading Economic Index Increased 0.6% in August


Dell (DELL) announced its biggest acquisition, buying Perot Systems (PER), to better compete with IBM (IBM), Dow Stock, in computer services. PER shot up 11.70 on the news while Dell slipped 90¢. However, Dell has doubled from its low earlier in the year.

•Dell to Buy Perot Systems for $3.9 Billion in Push Into Computer Services

Dell --- 1 year





Markets are quiet today. The acquisition by Dell should be a stimulant for the markets, but not today. Uncertainty about the pace of the economic recovery is allowing markets to drift (at 2009 highs).

Dow Jones Industrials --- 2 months