This was an ugly day for the markets on many scores, a reminder of the worst days 3 years ago. Dow sank 391 (buying into the close reduced the damage), decliners over advancers 7-1 & NAZ dropped 82. Bank stocks were market leaders again today & the Financial Index is at a 30 month low. Long forgotten, it was at record highs over 500 just 4 years ago (the end of 2007).
The MLP index had a day which rivals its worst. The REIT index fell 5+ to below 205 & junk bond funds were off about 2% (big for them). Treasury 10 & 30 year bonds soared again bringing record low yields. The yield on the 30 year bond is below 2.8%. That's all of 2.8% for 30 years! Oil sold off badly along with stocks. Gold also fell, a little more difficult to figure that one out since it's considered a safe haven investment. There are rumors that central banks were selling. If so, that pressure will not last.
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Get the latest market update below:
Meg Whitman
Hewlett-Packard, a Dow stock, is set to name Meg Whitman, the former eBay CEO, as its new CEO, forcing aside Leo Apotheker after just 11 months on the job. The HPQ board is meeting & an announcement is expected at the close of trading. Whitman is getting the nod because there are few available people with the ability to run complex technology business. Apotheker is being removed because the board lost confidence in his ability to lead the company long-term. Whitman's appointment would represent yet another turnaround strategy at the world's largest computer company. The stock fell 1.18 after a pop yesterday on the rumor.
HP Said Preparing to Name Whitman Permanent CEO
Photo: Bloomberg
United Technologies, a Dow stock, will buy Goodrich for about $16B in cash, calling the aerospace & defense company a perfect addition that will allow it to take advantage of rapidly growing demand for aircraft components. GR makes a variety of aircraft components including landing systems, wheels & brakes, along with systems for military aircraft. The deal is expected to create a $66B company, with a little less than half of its sales coming from aerospace. "I am bullish on aerospace and the whole team is bullish on aerospace, it's one of the few areas with a brighter outlook today," CEP Louis Chenevert said. "Goodrich again like UTC is well positioned with higher content on many new platforms," he added. The deal had been rumored for days, sending GR shares soaring. UTX will pay $127.50 a share, amounting to a 47% premium above the stock's price last Thur before word of a pending deal first leaked. GR was up 11.11 to 120.60 & UTX fell 6.56.
United Technologies to Buy Goodrich for $16.5 Billion as Plane Orders Jump
S&P 500 Financials Sector Index
| Value | 155.68 | |
| Change | -4.79 (-3.0%) |
The MLP index had a day which rivals its worst. The REIT index fell 5+ to below 205 & junk bond funds were off about 2% (big for them). Treasury 10 & 30 year bonds soared again bringing record low yields. The yield on the 30 year bond is below 2.8%. That's all of 2.8% for 30 years! Oil sold off badly along with stocks. Gold also fell, a little more difficult to figure that one out since it's considered a safe haven investment. There are rumors that central banks were selling. If so, that pressure will not last.
Alerian MLP Index
| Value | 343.42 | |
| Change | -10.05 (-2.8%) |
Treasury yields:
U.S. 3-month | 0.000% | |
U.S. 2-year | 0.198% | |
U.S. 10-year | 1.719% |
| CLX11.NYM | ...Crude Oil Nov 11 | ...80.19 | .... 5.73 (6.7%) |
Hewlett-Packard, a Dow stock, is set to name Meg Whitman, the former eBay CEO, as its new CEO, forcing aside Leo Apotheker after just 11 months on the job. The HPQ board is meeting & an announcement is expected at the close of trading. Whitman is getting the nod because there are few available people with the ability to run complex technology business. Apotheker is being removed because the board lost confidence in his ability to lead the company long-term. Whitman's appointment would represent yet another turnaround strategy at the world's largest computer company. The stock fell 1.18 after a pop yesterday on the rumor.
HP Said Preparing to Name Whitman Permanent CEO
Hewlett-Packard Company (HPQ)
United Technologies, a Dow stock, will buy Goodrich for about $16B in cash, calling the aerospace & defense company a perfect addition that will allow it to take advantage of rapidly growing demand for aircraft components. GR makes a variety of aircraft components including landing systems, wheels & brakes, along with systems for military aircraft. The deal is expected to create a $66B company, with a little less than half of its sales coming from aerospace. "I am bullish on aerospace and the whole team is bullish on aerospace, it's one of the few areas with a brighter outlook today," CEP Louis Chenevert said. "Goodrich again like UTC is well positioned with higher content on many new platforms," he added. The deal had been rumored for days, sending GR shares soaring. UTX will pay $127.50 a share, amounting to a 47% premium above the stock's price last Thur before word of a pending deal first leaked. GR was up 11.11 to 120.60 & UTX fell 6.56.
United Technologies to Buy Goodrich for $16.5 Billion as Plane Orders Jump
Goodrich Corporation (The) (GR)
United Technologies Corporation (UTX)
Fear is in command, causing markets to sell off. The VIX, volatility index, shown below, is back in the 40s. Earlier this year it was lumbering along in the mid teens. Over 40 spells trouble. The FED's actions yesterday reinforced fears that recession is around the corner, so it reacted with the bond buying program. Meanwhile Greece is still begging for another bailout, doing all that it can to get the money. Massive federal deficits are still not getting much attention, but they represent another very dark cloud overhanging the markets. Dow closed 13 above its low close in Aug. The low held, bulls like to see that. But its still down 900 in Sep, not a very good month!
Volatility Index (^VIX)
Dow Industrials (INDU)
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