Dow sank 258 (a new yearly low), decliners ahead of advancers 6-1 & NAZ slumped 79. As was the case lately, market leader bank stocks led the selling. The Financial Index is flirting with lows not seen since the middle of 2009!
The MLP index dropped a very large 7+ (big daily swings have become common in 2011) & the REIT index fell 9 to the 194s (last seen in early 2010). Junk bond funds were lower after having a bad Q3 but Treasuries were strong with the yield on the 10 year Treasury near its record lows of 1¾%. Oil continued weak on worries about less demand from Europe. Gold soared as investors sought a safe haven investment.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Bloomberg
American Airlines parent company stock tumbled on renewed concerns that the carrier could be headed for bankruptcy protection. Shares fell 98¢ to $1.98 after plummeting to their lowest point since 2003. A major airline trade group, The International Air Transport Association, said that the industry may be headed for a downturn. AMR is considered to be in the most vulnerable financial position of major US carriers & is the only major airline that has not filed for bankruptcy in the last decade, leaving it saddled with higher costs for everything from labor to financing. It is the only major airline that lost money this year. In Q2 alone it lost $286M.
AMR Stock Plunges on Bankruptcy Concern
Photo: Yahoo
US builders increased spending on homes, office buildings & other projects in Aug after a big decline in Jul. While the gain is modestly good news for the economy, it still left the construction industry far below levels considered healthy. Construction spending rose 1.4% in Aug according to the Commerce Dept. The increase followed a 1.4% drop in Jul, the biggest setback in 6 months. Much of the increase stemmed from a jump in spending on gov projects, such as roads & schools which aren't expected to continue. Private construction is still not healthy. Building activity reached an annual rate of $799.1B, 4.8% above an 11-year low hit in Mar (but barely more than half the $1.5T pace considered healthy). It could be 4 years before construction returns to healthy levels. A dismal outlook for housing & a weak economy have forced govs to cut back on building plans.
Construction Spending in U.S. Unexpectedly Rose in August on Local Outlays
ABC News (DIS) & Yahoo are joining to deliver more online news to their audiences. ABC News content will be prominently featured on Yahoo News & will also show up on Yahoo's popular front page. The 2 news organizations have a combined online audience of more than 100M per month in the US. While, the deal helps ABC grow its online reach, YHOO can drive further traffic to its own site by featuring original, made-for-online content. Both companies will maintain editorial control of their own content. YHOO rose 36¢.
Yahoo Strikes News Accord With ABC as Alibaba Weighs Offer for Web Portal
The economic news today was so-so at best. Manufacturing data was only modestly encouraging, but orders (future activity) were weak. Trucks sales were a major factor in improved auto sales, more of a temporary influence rather than a long term trend. Construction remains stuck in the mud. There is a sense of unease in the business world. Consumer behavior is not encouraging & the gov is no help, to say the least. Then there's Greece, a coming disaster in slow motion. Markets don't like what they see in the US & global economies, there are no quick fixes. The VIX, volatility index, went up 1+ to the 44s, flirting with its yearly highs made in Aug. Dow may have to test 10K, not that far away, probably this week. The jobs report on Fri has the potential to bring Dow below 10K after it's announced.
S&P 500 Financials Sector Index
| Value | 151.85 | |
| Change | -7.63 (-2.2%) |
The MLP index dropped a very large 7+ (big daily swings have become common in 2011) & the REIT index fell 9 to the 194s (last seen in early 2010). Junk bond funds were lower after having a bad Q3 but Treasuries were strong with the yield on the 10 year Treasury near its record lows of 1¾%. Oil continued weak on worries about less demand from Europe. Gold soared as investors sought a safe haven investment.
Alerian MLP Index
| Value | 332.74 | |
| Change | -7.63 (-2.2%) |
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.005% | |
U.S. 2-year | 0.239% | |
U.S. 10-year | 1.788% |
| CLX11.NYM | ...Crude Oil Nov 11 | ...77.28 | ... 1.92 | (2.4%) |
American Airlines parent company stock tumbled on renewed concerns that the carrier could be headed for bankruptcy protection. Shares fell 98¢ to $1.98 after plummeting to their lowest point since 2003. A major airline trade group, The International Air Transport Association, said that the industry may be headed for a downturn. AMR is considered to be in the most vulnerable financial position of major US carriers & is the only major airline that has not filed for bankruptcy in the last decade, leaving it saddled with higher costs for everything from labor to financing. It is the only major airline that lost money this year. In Q2 alone it lost $286M.
AMR Stock Plunges on Bankruptcy Concern
AMR Corporation (AMR)
US builders increased spending on homes, office buildings & other projects in Aug after a big decline in Jul. While the gain is modestly good news for the economy, it still left the construction industry far below levels considered healthy. Construction spending rose 1.4% in Aug according to the Commerce Dept. The increase followed a 1.4% drop in Jul, the biggest setback in 6 months. Much of the increase stemmed from a jump in spending on gov projects, such as roads & schools which aren't expected to continue. Private construction is still not healthy. Building activity reached an annual rate of $799.1B, 4.8% above an 11-year low hit in Mar (but barely more than half the $1.5T pace considered healthy). It could be 4 years before construction returns to healthy levels. A dismal outlook for housing & a weak economy have forced govs to cut back on building plans.
Construction Spending in U.S. Unexpectedly Rose in August on Local Outlays
ABC News (DIS) & Yahoo are joining to deliver more online news to their audiences. ABC News content will be prominently featured on Yahoo News & will also show up on Yahoo's popular front page. The 2 news organizations have a combined online audience of more than 100M per month in the US. While, the deal helps ABC grow its online reach, YHOO can drive further traffic to its own site by featuring original, made-for-online content. Both companies will maintain editorial control of their own content. YHOO rose 36¢.
Yahoo Strikes News Accord With ABC as Alibaba Weighs Offer for Web Portal
Yahoo! Inc. (YHOO)
The economic news today was so-so at best. Manufacturing data was only modestly encouraging, but orders (future activity) were weak. Trucks sales were a major factor in improved auto sales, more of a temporary influence rather than a long term trend. Construction remains stuck in the mud. There is a sense of unease in the business world. Consumer behavior is not encouraging & the gov is no help, to say the least. Then there's Greece, a coming disaster in slow motion. Markets don't like what they see in the US & global economies, there are no quick fixes. The VIX, volatility index, went up 1+ to the 44s, flirting with its yearly highs made in Aug. Dow may have to test 10K, not that far away, probably this week. The jobs report on Fri has the potential to bring Dow below 10K after it's announced.
Dow Industrials (INDU)
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