VerySmartInvesting: Another soggy day for the markets

Monday, October 4, 2010

Another soggy day for the markets

Worries are getting to traders & investors. Dow fell 78, decliners ahead of advancers 5-2 & NAZ dropped 26. Banks were weak taking the Financial Index down 1½ to the 193s & nearer its yearly low of 180. The Alerian MLP Index drifted 2 points lower but buying in the PM brought MLPs back to eke out a gain measured in pennies, good enough for another post Jul 2007 high! It needs 3 to reach a new record. Gold was little changed, essentially at its record level at 1315. Treasuries remain hot. The 2 year note has a record low yield & the 10 year Treasury yield is below 2½% again, sending negative signals for the stock markets.

Treasury yields:

U.S. 3-month   0.15%

U.S. 2-year       0.41%

U.S. 10-year    2.47%

Alerian MLP Index -- 2 weeks

GLD (ETF) -- 2 weeks

10-Year Treasury Yld Index -- 2 weeks

Markets are getting another case of the shakes. The jobs report is coming on Fri & once again it's not expected to be pretty. The forecast is for a gain of 75K jobs in the private sector offsetting a comparable decline in census jobs. New jobs created aren't enough to improve the unemployment rate which is expected to inch up to 9.7% with more resuming their search for work. Then Alcoa (AA), a Dow stock, will kick off earnings season. The Dow chart below shows it hasn't been able to break above 10.8K. Investors are very nervous about earnings reports.

Dow Jones Industrials -- 2 weeks