After staging a recovery from early losses, stocks sank in the last hour. Dow finished down 190, decliners over advancers 3-1 & NAZ was 46 lower. Bank stocks suffered a similar fate, with major selling in the last hour of trading.
The MLP index fell 1 to 366 & the REIT index was off 2 to 223. Junk bond funds were mixed & Treasuries were higher on growing unrest in the European debt mess. Oil climbed solidly above $100 a barrel, the first time since Jul. Gold continued to fluctuate in the the mid 1700s where it has been all week.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
A Dem on the "supercommittee" questioned whether Reps are still interested in negotiating after the panel's top GOP member said Reps have "gone as far as we feel we can go" on tax hikes. A sense of deep pessimism has gripped the supercommittee, & judging from the limited public statement by panel members, a debt bargain could be out of reach. "We need to find out whether our Republican colleagues want to continue to negotiate or whether they've drawn a hard line in the sand," said supercommittee Dem Chris Van Hollen of Maryland. "The question is whether they've kind of said 'take it or leave it.' " Yesterday Jeb Hensarling, R-Texas, said that the bipartisan debt supercommittee is "somewhat stymied for the moment" because panel Dems are insisting on tax increases of up to $1T in exchange for cost curbs on rapidly spiraling benefit programs such as Medicare & Social Security. Whopper deficits are an enormous problem & when it domes to solving the problem, this committee is stuck in the mud.
Democrats, Republicans far apart on deficit deal AP
AMR, parent of American Airlines, stock fell near an 8-year-low as American Airlines pushed union workers to accept contracts that would boost productivity. Compromise is possible if the pilots accept that it will become a smaller carrier. American tried to wrap up a contract with pilots this week by making an offer with 2 options but union leaders balked, leaving the talks in limbo. A deal with the pilots' union could establish a precedent for deals with flight attendants & mechanics, who are represented by separate unions. But leaders of the 3 unions are angry about what they see as overly generous executive compensation while workers continue to labor under wage & benefit cuts they accepted in 2003. The stock fell today, taking it below $2. If the airline fails, the entire economy will fell its effects.
The MLP index fell 1 to 366 & the REIT index was off 2 to 223. Junk bond funds were mixed & Treasuries were higher on growing unrest in the European debt mess. Oil climbed solidly above $100 a barrel, the first time since Jul. Gold continued to fluctuate in the the mid 1700s where it has been all week.
AMZ Alerian MLP Index
DJR Dow Jones Equity REIT Index
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Treasury yields:
U.S. 3-month | 0.005% | |
U.S. 2-year | 0.250% | |
U.S. 10-year | 2.019% |
| CLZ11.NYM | ...Crude Oil Dec 11 | ...102.41 | ... 3.04 | (3.1%) |
A Dem on the "supercommittee" questioned whether Reps are still interested in negotiating after the panel's top GOP member said Reps have "gone as far as we feel we can go" on tax hikes. A sense of deep pessimism has gripped the supercommittee, & judging from the limited public statement by panel members, a debt bargain could be out of reach. "We need to find out whether our Republican colleagues want to continue to negotiate or whether they've drawn a hard line in the sand," said supercommittee Dem Chris Van Hollen of Maryland. "The question is whether they've kind of said 'take it or leave it.' " Yesterday Jeb Hensarling, R-Texas, said that the bipartisan debt supercommittee is "somewhat stymied for the moment" because panel Dems are insisting on tax increases of up to $1T in exchange for cost curbs on rapidly spiraling benefit programs such as Medicare & Social Security. Whopper deficits are an enormous problem & when it domes to solving the problem, this committee is stuck in the mud.
Democrats, Republicans far apart on deficit deal AP
AMR, parent of American Airlines, stock fell near an 8-year-low as American Airlines pushed union workers to accept contracts that would boost productivity. Compromise is possible if the pilots accept that it will become a smaller carrier. American tried to wrap up a contract with pilots this week by making an offer with 2 options but union leaders balked, leaving the talks in limbo. A deal with the pilots' union could establish a precedent for deals with flight attendants & mechanics, who are represented by separate unions. But leaders of the 3 unions are angry about what they see as overly generous executive compensation while workers continue to labor under wage & benefit cuts they accepted in 2003. The stock fell today, taking it below $2. If the airline fails, the entire economy will fell its effects.
AMR AMR Corp
Enbridge Inc (ENB), a prominent Canadian energy company & the general partner for Enbridge Enrergy Parts (EEP), said it would use its pending $1.2B acquisition of ConocoPhillips’ (COP) 50% stake of the Seaway Crude Pipeline System to clear up a bottleneck of oil in the Midwest. It will reverse the flow of the pipeline with 50% Seaway pipeline owner & operator Enterprise Product Partners (EPD) to ship oil to export terminals on the US Gulf Coast. The move would draw down crude backed up at Cushing, Okla, a primary pipeline hub that also serves as the delivery point for oil futures traded in NY. This news helped send oil futures up more than 3% to $102 on the prospects for lower supplies at Cushing. Shares of the 3 energy companies were little changed. The graph below is for ENB, the Canadian energy giant traded on NYSE.
Warnings about the impact of Europe's debt crisis on the global economy brought on selling, especially in the last hour, Optimism about the US economy limited losses earlier, but bulls went home early. The exposure banks have to European sovereign debts is unclear & there are fears losses could be substantial. Banks are cutting jobs with Citi (C) saying it may cut 3K (adding to already high unemployment totals). Dow could not hold 12K which it has remained near for the last month. The last time it rose thru 12K, was last Dec when all those smart guys were busy revising upward their projections for 2011. Hmmm! Between deficit issues in Europe & the US, the stock market will be challenged.
Dow Jones Industrial Average
Dow Jones Industrial Average
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