Markets slip as gold tops 1400 for a new record

Stocks had a soggy day held back by growing concerns on European sovereign debt problems.  Dow fell 37, decliners over advancers 5-4 & NAZ added 1.  Bank stocks led the way down, but the Financial Index finished off its lows


S&P 500 FINANCIALS INDEX

Value	207.79
Change	-1.62  (-0.8%)

After being lower, the MLP index recovered & ended with a gain of ½ to 362, yet another record.  The REIT index also recovered much of its early losses to end being down 1½ to the 229s.  Junk bond funds rose to new multi years highs.  The Treasuries were hit with a little profit taking.  The yield on the 10 year Treasury bond rose 3 basis points to 2.56%, but is still less than 20 basis points above its recent lows under 2.40%.

Treasury yields:

U.S. 3-month		0.11%
U.S. 2-year		0.40%
U.S. 10-year		2.55%

Alerian MLP Index   ---   YTD



Dow Jones REIT Index   ---   YTD



10-Year Treasury Index   ---   YTD




Although it managed a gain, oil retreated from its highest level in 2 years as the dollar strengthened against the €. Gold topped $1,400 an ounce, extending its rally to another record.  Strength came after concerns mounted that govs in Europe (beginning with Ireland) will struggle to pay debts. Before today, the metal jumped 28% this year, heading for the 10th straight annual gain.

CLZ10.NYM

...Crude Oil Dec 10

...87.06

..... 0.21

(0.2%)

GCX10.CMX

...Gold Nov 10....

1,409.20

... 11.90

(0.9%)

$$$ Gold Super Cycle $$$  

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Federal Deposit Insurance Corp (FDIC) Chairman Sheila Bair said regulators will need to gather more information on mortgage documents to relieve a foreclosure bottleneck that threatens to derail the US economic recovery. There are "serious problems" with the documentation.  Among the banks being examined are:  JPMorgan (JPM), Bank of America (BAC) & Ally Financial’s GMAC Mortgage unit.  They have temporarily halted home seizures to review paperwork after court documents showed employees may have submitted affidavits in foreclosure cases without confirming their accuracy.

Bair Says Regulators Need More Data to Relieve U.S. Foreclosure Bottleneck


Google (GOOG) & Dell (DELL) plan to push ahead with more acquisitions.  The takeover spree has boosted the value of US technology mergers to more than $60B YTD.  GOOG is likely to buy more companies about the size of YouTube & DoubleClick, its 2 largest deals, to help offer more online services. DELL plans more takeovers in its drive to double the size of its data-center business to $30B.  Today Amazon (AMZN) announced it will pay $½B for Quidsi, owner of Diapers.com.

Google, Dell Likely to Keep Acquisition Spree Alive

Google   ---   YTD



Dell   ---   YTD



Amazon   ---   YTD





Apple found friends again who are taking it back to its record reached 3 weeks ago.  The stocks gained 1½ to the 318s, just inches from its record highs. 

Apple   ---   YTD




While the averages were down, markets were really just treading water.  That is best typified by the Alerian MLP Index working its way back into the black.  European debt problems are bubbling up again.  The rise of gold when the dollar is strong is unusual, but happened this summer during the Greek debt crisis.  Ireland is coming under greater scrutiny which is driving buyers into gold.  Strength in gold is at conflict with strength in stock markets. 

Dow Jones Industrials   ---   YTD

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