Dow fell 75, decliners over advancers 3-2 & NAZ dropped 75. The oversold MLP index recovered a whopping 19+ to the 277s & the REIT index fell lost 2 to 317. Junk bond funds were mixed to lower & Treasuries rallied as stocks were sold. Oil headed south after gaining in the AM while gold was off a tad.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.21612470575827958)
Oil prices dropped again after traders & investors ignored an unexpected drawdown in US crude stockpiles to focus on a build in distillates, including diesel, that came in more than what was expected. Crude inventories across the US fell 3.6M barrels last week, the gov Energy Information Administration (EIA) said. It was the first stockpile drop after 10 straight weeks of builds, bucking a 300K-barrel build forecast. Futures of Brent & West Texas Intermediate (WTI) were up more than $1 a barrel in an immediate reaction to the data, before turning negative later as the market's attention turned to the bearish distillate numbers. The EIA said distillate inventories jumped 5M barrels, double the forecast & the sharpest rise since Jan, while demand for the fuels fell to its lowest level seasonally since 1998. Some analysts thought the EIA inventory data, which also cited a smaller-than-expected build in gasoline stockpiles, was supportive.
General Electric, a Dow stock, is in advanced talks to buy the drill-bits & drilling-services divisions of Haliburton (HAL), which is divesting assets to win antitrust approval for its takeover of Baker Hughes. Selling both the drill-bits & drilling-services businesses could have fetched as much as $5B in total for the oilfield services provider. It is not clear how much the decline in oil prices may have affected their respective market values. GE is also exploring bids for other assets that HAL is seeking to unload, including parts of Baker Hughes's completions operations. GE has built up its oil & gas unit over the past decade thru more than $10B in acquisitions, including a $3.3B deal in 2013 for Lufkin Industries. The oil & gas business is central to CEO Jeffrey Immelt's strategy to expand industrial manufacturing divisions while shrinking consumer-focused & lending operations. GE stock rose 28¢. If you would like to learn more about GE, click on this link:
club.ino.com/trend/analysis/stock/GE?a_aid=CD3289&a_bid=6ae5b6f7
Toll Brothers misses 4Q profit forecasts
The trading day started out good, but optimism did not last. Swings in the oil market are controlling the stock market. And those swings have a negative bias with oil at multi year lows. After the ups & downs along the way, Dow is down more than 300 YTD. Prospects for a year-end rally (after the FOMC meeting next week) are not good.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLF16.NYM | ....Crude Oil Jan 16 | ....37.11 |  ...0.40 | (1.1%) |
Oil prices dropped again after traders & investors ignored an unexpected drawdown in US crude stockpiles to focus on a build in distillates, including diesel, that came in more than what was expected. Crude inventories across the US fell 3.6M barrels last week, the gov Energy Information Administration (EIA) said. It was the first stockpile drop after 10 straight weeks of builds, bucking a 300K-barrel build forecast. Futures of Brent & West Texas Intermediate (WTI) were up more than $1 a barrel in an immediate reaction to the data, before turning negative later as the market's attention turned to the bearish distillate numbers. The EIA said distillate inventories jumped 5M barrels, double the forecast & the sharpest rise since Jan, while demand for the fuels fell to its lowest level seasonally since 1998. Some analysts thought the EIA inventory data, which also cited a smaller-than-expected build in gasoline stockpiles, was supportive.
Oil Prices Fall on Crude Inventory Drop
General Electric, a Dow stock, is in advanced talks to buy the drill-bits & drilling-services divisions of Haliburton (HAL), which is divesting assets to win antitrust approval for its takeover of Baker Hughes. Selling both the drill-bits & drilling-services businesses could have fetched as much as $5B in total for the oilfield services provider. It is not clear how much the decline in oil prices may have affected their respective market values. GE is also exploring bids for other assets that HAL is seeking to unload, including parts of Baker Hughes's completions operations. GE has built up its oil & gas unit over the past decade thru more than $10B in acquisitions, including a $3.3B deal in 2013 for Lufkin Industries. The oil & gas business is central to CEO Jeffrey Immelt's strategy to expand industrial manufacturing divisions while shrinking consumer-focused & lending operations. GE stock rose 28¢. If you would like to learn more about GE, click on this link:
club.ino.com/trend/analysis/stock/GE?a_aid=CD3289&a_bid=6ae5b6f7
GE Said to Be in Advanced Talks for Halliburton Drilling Assets
General Electric (GE)
Toll Brothers fiscal Q4 earnings jumped nearly 12%, but the home builder's
bottom line missed expectations. EPS rose to 80¢, ahead of 71¢ last
year. The estimate was for EPS of 83¢. Revenue
rose more than 6% to 1.44B,
topping forecasts of 1.4B. For the year, the company reported EPS 1.97 on revenue of 4.17B. CEO Douglas C. Yearley Jr said that the housing market is on a steady
growth pace, & TOL is experiencing a healthier market in
many regions than it did a year ago. For the full fiscal year, the company delivered 5525 homes, & expects to deliver 5.6K-6.6K homes next year. The stock dropped 1.04. If you would like to learn more about TOL, click on this link:
club.ino.com/trend/analysis/stock/TOL?a_aid=CD3289&a_bid=6ae5b6f7Toll Brothers misses 4Q profit forecasts
Toll Brothers (TOL)
The trading day started out good, but optimism did not last. Swings in the oil market are controlling the stock market. And those swings have a negative bias with oil at multi year lows. After the ups & downs along the way, Dow is down more than 300 YTD. Prospects for a year-end rally (after the FOMC meeting next week) are not good.
Dow Jones Industrials
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