VerySmartInvesting: Markets lower on unrest in Libya

Monday, March 7, 2011

Markets lower on unrest in Libya

Dow started higher but has been falling on the civil wart in Libya which is reducing its oil exports. Dow fell 39, decliners over advancers 2-1 & NAZ was off 32. Bank stocks are drifting lower along with the rest of the markets.

S&P 500 FINANCIALS INDEX

Value	221.69
Change	-0.44 (-0.2%)

The Alerian MLP Index inched up a fraction, still above 380 while the Dow Jones REIT Index fell 1+ to the 231s. Junk bond funds were mixed on continuing strong demand for junk bonds, especially when new debt is sold. Treasuries were mixed on the confusion from Libya. The yield on the 10 year Treasury bond was up 1½ basis points to 3.51%, little changed from where it has been for weeks.

Treasury yieldds:

U.S. 3-month		0.11%
U.S. 2-year		0.69%
U.S. 10-year		3.51%

Oil rose to a 29-month high as escalating violence in Libya bolstered concern that supply disruptions may spread through the Mideast. Gold futures climbed to a record for the 3rd time in a week as escalating violence in Libya & concern that inflation will accelerate boosted demand for the metal as an investment haven. I'm having problems getting charts, but below is one for gold topping $1440 earlier today.

CLJ11.NYM

...Crude Oil Apr 11

...105.64

....

1.22 (1.2%)

GCH11.CMX

...Gold Mar 11

......1,436.90

...

8.70 (0.6%)

Gold Super Cycle Link! Click Here

The price at the pump is only 60¢ away from the record in 2008 & looks like it will break thru to records shortly. This rise will pinch the recovery very hard.

	Regular	Mid	Premium	Diesel	85	**E85 MPG/BTU adjusted price
Current Avg.	$3.509	$3.643	$3.772	$3.878	$2.941	$3.870
Yesterday Avg.	$3.503	$3.634	$3.763	$3.863	$2.929	$3.854
Week Ago Avg.	$3.368	$3.468	$3.613	$3.713	$2.840	$3.737
Month Ago Avg.	$3.122	$3.251	$3.377	$3.480	$2.672	$3.516
Year Ago Avg.	$2.747	$2.917	$3.022	$2.896	$2.339	$3.079

Source: AAA

There is not a lot of corp news, attention is on higher oil prices from the civil war in Libya. Unsettled conditions may drag on for weeks if not longer which will send crude oil prices higher. I'm having problems getting my regular charts, hope they will return soon. In the meantime, the Dow charts show how Dow has stalled just above 12K & it's sharp slide today (down over 100 in one hour).

Dow Jones Monthly Stock Chart