Dow declined 216, decliners over advancers 3-1 NAZ fell 45. The Financial Index lost 4+ to 234. Selling in the PM dragged the index down 4+ to the 223s & the REIT index was off 5+ to the 275s. Junk bond funds were weak & Treasuries rose with late day buying. Oil did little & gold climbed the most in 3 weeks
as the central banks of Russia & Kazakhstan increased bullion
reserves last month.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Facing an end of the week deadline, the pres said that congress can avert sweeping across-the-board cuts with "just a little bit of compromise," as he sought to stick lawmakers with the blame if the budget ax falls. While speaking to the nation's governors, Obama acknowledged that the impact of the $85B in cuts may not be felt immediately. But he also said the uncertainty already is impacting the economy, as the Pentagon & other agencies get ready to furlough employees. "At some point we've got to do some governing," Obama said. "And certainly what we can't do is keep careening from manufactured crisis to manufactured crisis." Despite the urgent rhetoric, there is little indication that the administration & congress will reach a deal by the Fri deadline. Obama wants to offset the so-called sequester through a combination of targeted spending cuts & revenue increases, but Reps oppose any plan that would include tax hikes. The $85B budget-cutting mechanism could affect everything from commercial flights to classrooms to meat inspections. Despite the deadline, there are no serious negotiations happening between the administration & congress. Instead Obama is focused instead are trying to rally public support for his stance in the debate by warning Americans of the dire consequences of the across-the-board cuts.
Former Premier Silvio Berlusconi
Photo: Bloomberg
Italy may require another vote after the 4-way race that ended was poised to result in a divided parliament, spurring concern of renewed turmoil in European markets. “Those projections show a risk of ungovernability,” Stefano Fassina, economic-policy spokesman for Democratic Party candidate Pier Luigi Bersani, said. Forecasts showed Bersani winning the lower chamber & Silvio Berlusconi with a blocking minority in the Senate. Italian bonds fell & stocks pared a rally as voters repudiated budget rigor & turned to the ex-prime minister who was forced out in Nov 2011 by Europe's financial crisis. It is feared that a hung parliament would lead to paralysis in the economic program & structural reforms, the worst-case outlook. The result may lead to President Giorgio Napolitano installing an interim gov, such as the one headed by incumbent Mario Monti, to write a new election law as the prelude to another vote. Confusion reigns, not good for the markets.
Italy Projections Show Hung Parliament on Berlusconi
Photo: Bloomberg
Hewlett-Packard, a Dow stock, unveiled a 7" tablet today in its 2nd attempt to break into the growing market as demand wanes for desktop computers & laptops. The Slate 7, introduced in Barcelona, runs on the Android operating system from Google (GOOG) & will go on sale in the US in Apr with a planned starting price of $169. It will be the first in a line of new consumer products that HPQ will start selling this year, said Alberto Torres, brought in to run the computer maker’s mobility unit. “We’re moving very fast,” Torres said. “It’s an important part of being successful in this market.” Making devices that run a plethora of software is also a strategy that HPQ is pursuing. Earlier this month, it announced a laptop running Chrome, another Google operating system & the company also sells a tablet running Windows 8 operating system for business customers. “We’re moving to a world that’s going to be a multi-OS world,” CEO Meg Whitman said. The stock fell 13¢.
Hewlett-Packard’s Android-Based Slate 7 Tablet to Take On Apple, Samsung
Hewlett-Packard (HPQ)
Buyers gave up quickly. After a good start, selling brought the Dow back to breakeven at 11 & the decline continued for the rest of the day. More important than the Italian elections is the budget mess in the US which is going nowhere fast. Because highly paid gov employees will get pinched, they're objective is to make budget cuts as painful as possible for taxpayer customers. Waste will be cut 7% (whatever) like at other agencies. With selling into the close, Dow is at a one month low.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.119% | |
U.S. 2-year |
0.244% | |
U.S. 10-year |
1.895% |
| CLJ13.NYM | ...Crude Oil Apr 13 | ...93.09 | ... 0.04 (0.4%) |
Facing an end of the week deadline, the pres said that congress can avert sweeping across-the-board cuts with "just a little bit of compromise," as he sought to stick lawmakers with the blame if the budget ax falls. While speaking to the nation's governors, Obama acknowledged that the impact of the $85B in cuts may not be felt immediately. But he also said the uncertainty already is impacting the economy, as the Pentagon & other agencies get ready to furlough employees. "At some point we've got to do some governing," Obama said. "And certainly what we can't do is keep careening from manufactured crisis to manufactured crisis." Despite the urgent rhetoric, there is little indication that the administration & congress will reach a deal by the Fri deadline. Obama wants to offset the so-called sequester through a combination of targeted spending cuts & revenue increases, but Reps oppose any plan that would include tax hikes. The $85B budget-cutting mechanism could affect everything from commercial flights to classrooms to meat inspections. Despite the deadline, there are no serious negotiations happening between the administration & congress. Instead Obama is focused instead are trying to rally public support for his stance in the debate by warning Americans of the dire consequences of the across-the-board cuts.
Countdown to Cuts: Obama Urges Congress to 'Compromise' AP
Former Premier Silvio Berlusconi
Photo: Bloomberg
Italy may require another vote after the 4-way race that ended was poised to result in a divided parliament, spurring concern of renewed turmoil in European markets. “Those projections show a risk of ungovernability,” Stefano Fassina, economic-policy spokesman for Democratic Party candidate Pier Luigi Bersani, said. Forecasts showed Bersani winning the lower chamber & Silvio Berlusconi with a blocking minority in the Senate. Italian bonds fell & stocks pared a rally as voters repudiated budget rigor & turned to the ex-prime minister who was forced out in Nov 2011 by Europe's financial crisis. It is feared that a hung parliament would lead to paralysis in the economic program & structural reforms, the worst-case outlook. The result may lead to President Giorgio Napolitano installing an interim gov, such as the one headed by incumbent Mario Monti, to write a new election law as the prelude to another vote. Confusion reigns, not good for the markets.
Italy Projections Show Hung Parliament on Berlusconi
Photo: Bloomberg
Hewlett-Packard, a Dow stock, unveiled a 7" tablet today in its 2nd attempt to break into the growing market as demand wanes for desktop computers & laptops. The Slate 7, introduced in Barcelona, runs on the Android operating system from Google (GOOG) & will go on sale in the US in Apr with a planned starting price of $169. It will be the first in a line of new consumer products that HPQ will start selling this year, said Alberto Torres, brought in to run the computer maker’s mobility unit. “We’re moving very fast,” Torres said. “It’s an important part of being successful in this market.” Making devices that run a plethora of software is also a strategy that HPQ is pursuing. Earlier this month, it announced a laptop running Chrome, another Google operating system & the company also sells a tablet running Windows 8 operating system for business customers. “We’re moving to a world that’s going to be a multi-OS world,” CEO Meg Whitman said. The stock fell 13¢.
Hewlett-Packard’s Android-Based Slate 7 Tablet to Take On Apple, Samsung
Hewlett-Packard (HPQ)
Buyers gave up quickly. After a good start, selling brought the Dow back to breakeven at 11 & the decline continued for the rest of the day. More important than the Italian elections is the budget mess in the US which is going nowhere fast. Because highly paid gov employees will get pinched, they're objective is to make budget cuts as painful as possible for taxpayer customers. Waste will be cut 7% (whatever) like at other agencies. With selling into the close, Dow is at a one month low.
Dow Jones Industrials
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