Wednesday, September 28, 2011

Overbought markets turn mixed

Dow was up 26, decliners over advancers 5-2 & NAZ fell 6. Bank stocks, market leaders, are pulling back after their recent run.

S&P 500 Financials Sector Index

Value	163.36
Change	-1.74 (-1.1%)

The MLP index fell 1+ to the 246s & the REIT index was flattish. Junk bond funds were little changed as were Treasuries with the yield on the 10 year Treasury holding near 2%. Oil fell, heading for the biggest quarterly drop since 2008, on concern Europe's debt crisis may linger & speculation US stockpiles increased. Gold is adjusting to its lower levels in the 1600s.

ALERIAN MLP Index (^AMZ)

Treasury yields:

U.S. 3-month	0.005%
U.S. 2-year	0.243%
U.S. 10-year	1.992%

CLX11.NYM

...Crude Oil Nov 11

...83.49

.....

0.96

(1.1%)

GCU11.CMX

...Gold Sep 11

......1,650.00

...

4.70

(0.3%)

Get the latest market update below:

Photo: Bloomberg

Amazon is unveiling a tablet, called the Fire, that may not have all the same features as an iPad, but will start at a much lower price. It will cost $199, compared to the iPad, which starts at $499. Initially the Kindle Fire will be more of a color version of the Kindle e-reader than a true competitor to the iPad. It will have a 7" display (3" shy of the iPad),& will run Google (GOOG) Android software, but it won’t have an embedded camera or microphone. It will come with Wi-Fi, but not 3G. The device comes with a 30-day free trial of Amazon Prime, the $79 annual membership, which includes free 2-day shipping & some content, like streaming video. The stock has had a fantastic run & is up $7+ today.

Amazon Unveils $199 Kindle Fire Tablet

Amazon.com, Inc. (AMZN)

Photo: Yahoo

EU & IMF inspectors will return to Greece to decide whether Greece has done enough to secure additional aid, vital to avoid bankruptcy. Germany has suggested a new bailout may have to be renegotiated. Facing a wave of strikes & protests, the Greek gov is accelerating budget measures to meet the terms of an IMF & EU rescue deal so it can receive a new loan next month. The "troika" team of inspectors, which had threatened to cut off aid if Athens did not move faster, will hold talks on a plan to deepen budget cuts & raise taxes which has driven protesters back onto the streets. German Chancellor Angela Merkel suggested that parts of a planned new €109B ($148.6B) rescue for Greece could be reopened, depending on the outcome of the troika's audit. "We have to wait and see what the troika ... finds and what it will tell us (whether) we will have to renegotiate or not," she said without elaborating. The Greek drama has been dragging on for months.

Merkel Sees More Bailout Talks After Review

<p>Washers and dryers are seen on display at a store in New York July 28, 2010. REUTERS/Shannon Stapleton</p>

Photos: Yahoo

New orders for durable goods slipped in Aug on weak demand for motor vehicles, but a rebound in a gauge of business spending supported views the economy would likely avoid another recession. The Commerce Dept said durable goods orders dipped 0.2% after a 4.1% jump in Jul. Expectations were that durable goods orders would be unchanged. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, increased 1.1% last month after a 0.2% fall in Jul, suggesting that businesses had not responded to the recent financial market volatility by curtailing spending on capital goods. Although manufacturing, which has done the heavy lifting for the fragile economy recovery, is slowing, Aug durable goods report pointed to underlying resilience & offered hope output would continue to expand. Orders last month were held back by an 8.5% drop in bookings for motor vehicles -- the largest decline since Feb last year.

U.S. Durable Goods Orders Likely Fell in August

The greatest excitement comes from the new product announcement by AMZN. Everybody is having fun speculating if it will be a big winner. Bigger picture, the markets reversed from over sold to over bought in just 2 days with little news to support the gains. There is a lot of focus on getting Greece the next batch of bailout funds to keep it alive. It's important to remember that nothing has been decided & Greece will probably be kept waiting to the last minute in mid Oct before it finds out.