Dow sank 246 closing at the lows, decliners over advancers 4-1 & NAZ fell 52. Bank stocks led the selling with the Financial Index falling 5+ to the 164s (13 above its lows at the start of the month).
The MLP index only edged higher to the 357s despite the big buyout news from Kinder Morgan (KMP) & the REIT dropped 5+ to the 207s. Junk bond funds were generally lower while Treasuries rose as stocks declined. Oil slipped from the highest price in a month after Germany said EU leaders won’t provide a complete fix to the region’s debt crisis, damping hopes for a quick rescue plan. Gold fell from a 3-week high as the dollar’s rally reduced demand for the precious metal.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Lowe's is closing 20 of its US locations & eliminating nearly 2K jobs. In addition, the home improvement retailer is slashing its store-opening plans to improve profitability. LOW, which operates about 1700 stores in the US, said it closed 10 stores & would close another 10 within a month. 1950 workers will be laid off (out of 161K full-time & 73K part-time employees). It said it planned to open only 10-15 new North American stores per year starting in 2012, down from a previous goal of 30. CEO Robert Niblock said that the company had to "make tough decisions" to improve profitability. LOW has been slower to cut costs than market leader Home Depot (HD), a Dow stock, whose sales at stores open a year or more have beaten its rival's for 9 straight qtrs. The stock was up a dime. Small in numbers but another negative for the unemployment picture.
Lowe’s Plans to Shut 20 Underperforming Stores, Affecting 1,950 Employees
Photo: Yahoo
US. factories produced more goods in Sep for a 3rd straight month, making more airplanes, trucks & home electronics to meet rising demand according to the Federal Reserve. The 0.4% increase in factory output followed other promising signs in Sep: hiring increased slightly & retail sales grew by the most in 7 months. Overall industrial production edged up 0.2% after being unchanged in Aug. Utility output decreased sharply, while mines continued to produce more & auto output increased for a 3rd straight month, home electronics production for a 5th month. Better than lower numbers, but not all that impressive.
Photo: Yahoo
Strikes halted ferries to the Greek islands & left rotting trash piling up in Athens for the 16th straight day, as unions fought back against austerity measures at the start of a crucial week for both Greece & the 17-nation eurozone. The unions orchestrated strikes, protests & sit-ins. Tax collectors & customs officers walked off the job, several hundred firefighters & police officers staged a central Athens protest in uniform & protesting civil servants occupied the finance & labor ministry buildings in Athens. Greece faces a key vote on the new austerity measures Thurs while other eurozone countries are rushing to find a comprehensive solution to Europe's escalating debt crisis in time for a Sun summit in Brussels. Both the Greek vote & the debt plan are needed so Europe can avoid a loss of confidence in global markets. Parliament's finance committee approved new austerity measures, which include pension cuts & across-the-board tax hikes, as well as pay & staff cuts in the civil service. The Greek drama plays & most importantly, it is far from over!
Strikes swamp Greece in decisive crisis week AP
Germany signaled that Europe may take longer to contain sovereign debt turmoil. Thailand is having its worst floods in over 50 years which will damage production from factories. For example, Western Digital (WDC) dropped $2.09 (7%) today on this news. Dems unveiled a scaled back jobs bill. Chances are it will go nowhere as DC is spinning its wheels. The VIX, Volatility Index, soared 5+ to the 33s, double where it was in better times. Worries are on the rise again. After an impressive rise last week, markets were hit with a heavy dose of reality today. Mediocre earnings from the banks (that's being kind) & a realization that European debt woes may not go away soon were too much to take. That negative sentiment could continue.
The MLP index only edged higher to the 357s despite the big buyout news from Kinder Morgan (KMP) & the REIT dropped 5+ to the 207s. Junk bond funds were generally lower while Treasuries rose as stocks declined. Oil slipped from the highest price in a month after Germany said EU leaders won’t provide a complete fix to the region’s debt crisis, damping hopes for a quick rescue plan. Gold fell from a 3-week high as the dollar’s rally reduced demand for the precious metal.
ALERIAN MLP Index (^AMZ)
DJ REIT INDEXDJR (^DJR)
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Treasury yields:
U.S. 3-month | 0.020% | |
U.S. 2-year | 0.266% | |
U.S. 10-year | 2.164% |
| CLX11.NYM | ...Crude Oil Nov 11... | 86.48 | ... 0.32 | (0.4%) |
Lowe's is closing 20 of its US locations & eliminating nearly 2K jobs. In addition, the home improvement retailer is slashing its store-opening plans to improve profitability. LOW, which operates about 1700 stores in the US, said it closed 10 stores & would close another 10 within a month. 1950 workers will be laid off (out of 161K full-time & 73K part-time employees). It said it planned to open only 10-15 new North American stores per year starting in 2012, down from a previous goal of 30. CEO Robert Niblock said that the company had to "make tough decisions" to improve profitability. LOW has been slower to cut costs than market leader Home Depot (HD), a Dow stock, whose sales at stores open a year or more have beaten its rival's for 9 straight qtrs. The stock was up a dime. Small in numbers but another negative for the unemployment picture.
Lowe’s Plans to Shut 20 Underperforming Stores, Affecting 1,950 Employees
Lowe's Companies, Inc. (LOW)
Photo: Yahoo
US. factories produced more goods in Sep for a 3rd straight month, making more airplanes, trucks & home electronics to meet rising demand according to the Federal Reserve. The 0.4% increase in factory output followed other promising signs in Sep: hiring increased slightly & retail sales grew by the most in 7 months. Overall industrial production edged up 0.2% after being unchanged in Aug. Utility output decreased sharply, while mines continued to produce more & auto output increased for a 3rd straight month, home electronics production for a 5th month. Better than lower numbers, but not all that impressive.
Photo: Yahoo
Strikes halted ferries to the Greek islands & left rotting trash piling up in Athens for the 16th straight day, as unions fought back against austerity measures at the start of a crucial week for both Greece & the 17-nation eurozone. The unions orchestrated strikes, protests & sit-ins. Tax collectors & customs officers walked off the job, several hundred firefighters & police officers staged a central Athens protest in uniform & protesting civil servants occupied the finance & labor ministry buildings in Athens. Greece faces a key vote on the new austerity measures Thurs while other eurozone countries are rushing to find a comprehensive solution to Europe's escalating debt crisis in time for a Sun summit in Brussels. Both the Greek vote & the debt plan are needed so Europe can avoid a loss of confidence in global markets. Parliament's finance committee approved new austerity measures, which include pension cuts & across-the-board tax hikes, as well as pay & staff cuts in the civil service. The Greek drama plays & most importantly, it is far from over!
Strikes swamp Greece in decisive crisis week AP
Germany signaled that Europe may take longer to contain sovereign debt turmoil. Thailand is having its worst floods in over 50 years which will damage production from factories. For example, Western Digital (WDC) dropped $2.09 (7%) today on this news. Dems unveiled a scaled back jobs bill. Chances are it will go nowhere as DC is spinning its wheels. The VIX, Volatility Index, soared 5+ to the 33s, double where it was in better times. Worries are on the rise again. After an impressive rise last week, markets were hit with a heavy dose of reality today. Mediocre earnings from the banks (that's being kind) & a realization that European debt woes may not go away soon were too much to take. That negative sentiment could continue.
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