Markets lower on worries of global economic slowdown

On a lackluster day, Dow fell 28, decliners over advancers 2-1 & NAZ was off 15. Banks also slipped, but the Financial Index remains near its highest levels in the last year.

S&P 500 FINANCIALS INDEX

Value 208.28

Change -0.65

% Change -0.3%

Time for profit taking in the high yield sectors. The Alerian MLP Index pulled back 2 to the 303s while the Dow Jones REIT Index was off a fraction to 194. Junk bond funds ticked up slightly. The yield on the 10-year Treasury bond rose 2 basis points to 3.73%, still in the higher end of its recent range.

Alerian MLP Index --- 2 weeks



Dow Jones REIT Index --- 2 weeks




Demand in the US for oil is declining, hurt by lower consumer confidence data which brought out sellers today. They took it below the 80 line which it has been near for several months. Gold was pretty much flat & able to hold above 1100.

CLJ10.NYM

...Crude Oil Apr 10

...79.84

.. 1.40 .......(1.7%)

Gold

...1,105.20_

3.50__

0.32

PepsiCo (PEP), a Dividend Aristocrat, will buy back $15B of stock over the next 3 years. Indra Nooyi , Chairman & CEO said, "The board's action reflects continued confidence in the growth of our business and our commitment to providing strong cash returns to our shareholders." They had previously said that PEP was buying $4.4B of its shares this year. Some of the buybacks will be made under a prior repurchase authorization from 2007, which had $6.4B remaining at the start of this year. In addition, the annual dividend will be boosted 7% to $1.92, starting in Jun. They reported the final regulatory hurdles had been cleared to buy its 2 biggest bottlers - Pepsi Bottling Group & PepsiAmericas. PEP rose 80¢ to 65.90.

• PepsiCo to buy back up to $15 billion in shares- AP

PepsiCo --- 2 years

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Just another lethargic day in the markets. Worries that China & India may slow their buying of just about everything kept buyers away. Of course, a vague Senate bill about more regulation for banks not to mention the monumental health care bill still in limbo is not helping. I just posted an article at SeekingAlpha.com on the very high levels junk bonds have risen to in the last year. This was their biggest rally in history! Without even a significant pause, I'm worried about their future as yields have fallen to historic low levels. Today they're edging higher.


Dow Jones Industrials --- 2 weeks