Markets slump after earnings from Bank of America & GE

2 Dow stocks reported disappointing earnings for Q3, taking markets lower. Dow fell 108, decliners over advancers 3-1 & NAZ was off 27. On the lackluster reports from Bank of America (BAC) & General Electric (GE), the Financial Index had a big loss from its yearly high levels.

S&P 500 FINANCIALS INDEX

Value 204.94

Change -5.35

% Change -2.5%

MLPs slipped slightly. The Alerian MLP Index fell only about ½, still in the 261s (it's yearly high). Dow Jones REIT Index dropped 4. Junk bond funds were mixed to higher at their 2009 high levels. Treasuries also sold off, the yield on the 10-year Treasury bond went up another 5 basis points to 3.43%. The VIX, volatility index, inched up but is in the 22s (its low for the year). Its plunge in 2009 describes how fears have eased, encouraging buyers to return to the markets.

Alerian MLP Iindex --- 2 weeks




Dow Jones REIT Index --- 2 weeks




VIX --- YTD





Oil went up above its 75-65 trading range it's lived in for several months, but today settled back a few pennies. Gold is still north of 1050, its record high levels

CLX09.NYM

...Crude Oil Nov 09

...77.37

... 0.21 .......(0.3%)

GCV09.CMX

...Gold Oct 09

...1,051.40

... 1.60 .......(0.2%)

BAC, Dow stock, reported its 2nd loss in less than a year, this one over $1B. Increased loan losses caused their results to be below forecasts, the stock fell 74¢. GE, another Dow stock, reported earnings dropped 45% as it troubled financial businesses were a major drag. The financial unit's profits plunged 87% in Q3. The stock was off 80¢. Both were S&P 500 Dividend Aristocrats last year.

•Bank of America Posts $1 Billion Third-Quarter Loss on Consumer Defaults
•GE Profit Falls 45% on Drop in Consumer Loans, Sales of Medical Machines


Bank of America --- 1 year




General Electric --- 1 year




2 giants reported last night. Google (GOOG) had good earnings, up 22 but IBM (IBM), a Dow stock, disappointed causing the stock to drop 6 today.

Google --- 1 year




IBM --- 1 year




Markets were not been able to extend their rallies. The chart below shows that Dow is up an amazing ½K in just 2 weeks. In other times that would be a so-so year! The earnings from BAC, GE & IBM, 3 very significant companies, will give bulls a chance to mull over the 3½K gain in the Dow in the last 7 months.

Dow Jones Industrials -- 2 weeks