Markets decline on China lending curbs

Dow losses pretty much wiped out gains from the prior day. Dow fell 122, decliners ahead of advancers 3-1 & NAZ sold off 29. IBM (IBM) was the biggest decliner in the Dow on discouraging earnings. In addition, 1+ point losses included: Chevron (CVX) & Exxon Mobil (XOM) on lower oil prices along with Caterpillar (CAT) & Procter & Gamble (PG). Earnings worries are keeping stock buyers away from the markets. Banks found buyers in the PM which limited losses for the Financial Index. But the Financial Index can't break out of its sideways trading range which has lasted 5 months.


S&P 500 FINANCIALS INDEX

Value 203.37

Change -0.27

% Change -0.1%

MLPs had another up day. The Alerian MLP Index rose a fraction to go over 300. The next stop is 342, its all time high recorded in Jul 2007. The Dow Jones REIT Index fell 2.60. Junk bond funds slipped off their recent highs. And the yield on the 10-year Treasury bond fell 5 basis points to 3.66%. High yielders continue in demand although REITs have had a much tougher go of it.

Alerian MLP Index --- 3 months




Dow Jones REIT Index --- 3 months









Oil fell back dragging oil stocks with them. Gold is back to looking for footing on which to build a base.

CLG10.NYM

..Crude Oil Feb 10

..77.15

.. 1.87 ......(2.4%)

GCF10.CMX

..Gold Jan 10

..1,112.80

.. 26.90 ......(2.4%)

GLD (ETF) --- 3 months









Simon Property (SPG) announced a $2.25B offering of its senior unsecured notes by its majority-owned partnership subsidiary & is expected to close Jan 25. Proceeds will be used to purchase senior notes & general corp purposes. The offering consists of $400M of 4.2% notes due 2015, $1.25B of 5.65% notes due 2020 & $600M of 6.75% notes due 2040. SPG is one of the largest REITs & the rates are considered attractive. The stock fell 1.78 on a down for the markets.

Simon Property announces $2.25B notes offeringAP


Simon Property --- 1 year





Price changes following today's earnings reports include:

BAC, up .17
IBM, down 3.89
WFC, down .46
MS, down .53







Markets were hurt by the concern that China’s moves to curb lending will slow the global economic recovery. This is important because China is buying every kind of raw material. At the same time, earnings reports discussing emerging from the recession are proving disappointing. Dow is having a tough time advancing in what should be a good month for stocks. Tomorrow, Goldman Sachs (GS) reports. It was up 93¢ ahead of the report.

Dow Jones Industrials --- 3 months