Afternoon selling trimmed morning gains

Dow went up 60 (but finished almost 100 below its highs), advancers over decliners 3-2 & NAZ added 17.  Bank stocks led the retreat late in the day.

S&P 500 Financials Sector Index

Value	184.71
Change	-1.45     (-0.8%)

The MLP index rose to 391 & the REIT index was up 1+ to 236.  Junk bond funds were mixed & Treasuries were a little higher on the confusing finanacial situation in Europe.  Oil & gold benefited from intl tensions, although gold lost strength in PM trading.

Alerian MLP Index

Value	391.11
Change	3.57    (0.9%)

Click below for the latest market update:

Today's 50 Top Trending Stocks

Treasury yields:

U.S. 3-month	0.020%
U.S. 2-year	0.217%
U.S. 10-year	1.848%

CLG12.NYM

...Crude Oil Feb 12

...100.66

... 1.96

(2.0%)

Photo:   Bloomberg

Kraft Foods, a Dow stock, will split in 2 this year & plans to eliminate 1600 jobs.  The job cuts will take place in Noth America & about 40% are a result of reorganizing US sales.  This is another dent in the economic recovery bringing more jobs for Americans.  About 40% of the cuts will come from corp staff & 20% are vacancies that will remain unfilled.  “When we announced our decision to create two world-class companies last August, we said both would be leaner, more competitive organizations,” CEO Rosenfeld said. “For the past year, the North American team has been working to streamline operations.”  KFT is splitting up to help the snacks business push products into emerging markets & make additional acquisitions while the slower-growing, higher-margin grocery business expands in the US & returns cash to shareholders.  In a seperate statement it said full-year operating income probably rose to at least $2.28, trailing the $2.29 estimate.  The company previously said it would earn $2.27 a share, excluding a penny per share loss because of foreign-currency fluctuations.  The stock was up 36¢.

Kraft to Cut 1,600 Jobs Ahead of Split

Kraft Foods Inc. (KFT)

Greece resumed talks with its intl debt inspectors, to avoid becoming the first country that uses the € to default on its debts.  The debt inspectors face a massive task.  They have to find even more ways to cut spending & raise revenue in a country that is increasingly seen as immune to fundamental reforms.  They also have to set up a detailed policy & spending program for the next 2 years if Greece wants to have a chance at securing an extra €130B ($166B) in rescue loans.  The inspectors from the IMF, ECB & European Commission, known as the 'troika,' are not the only foreign officials in town this week.  While they go through the books, the gov is also locked in a battle to convince banks & other private bondholders to forgive half of the Greek debt they hold, an essential part of the 2nd rescue package.  Meanwhile, the head of the EU task force for Greece is also in the capital, looking to streamline the country's sprawling bureaucracy, trying to improve lax tax collection & kickstart stalled infrastructure projects.  This is morphing from a drama to a pending disaster.

Greece in race against time to avoid default AP

Photo:   Boomberg

Carnival shares had a horrible day after its worst accident as CEO Micky Arison oversees the response 5000 miles away in Miami.  Everybody is blaming the captain for getting too close to the island of Giglio.  At least 11 dead & 24 missing.  The stock plunged 4.68 (14%).  A shorter term graph was used to better higlight the fall today.

Carnival Shares Drop as CEO Arison Oversees Shipwreck Response From Miami

Carnival Corporation (CCL)

The stock-market rally has driven short interest to a 9 month low & bearish sentiment is close to a 6-year low, a sign that few investors may be left to propel further gains.  That's called a technical interpretation of the market, but it drove selling in the PM.  The first few earnings reports do not inspire confidence, more disappointment may lie ahead.  There are also plenty of macro issues to think about.  The tax cut extension must be authorized in the next 40 days.  But Congress is divided.  A few months later, the debt ceiling has to be raised again & that will not come easily in the middle of a presidential election.  If Dow wants to go higher, 12.8K is the next major barrier & that could be tough to crack.

Dow Industrials

Get your favorite symbols' Trend Analysis TODAY!  

Click Here

Markets plunge on growing economic worries

Dow tumbled 276 (off almost 1.2K from its high 3 months ago), decliners ahead of advancers 7-1 & NAZ sank 76.  Banks are leading the selling with the Financial Index at levels not seen in almost a year!

S&P 500 Financials Sector Index

Value	188.62
Change	-5.41    (-2.8%)

MLPs & REITs are having another ugly day with the Alerian MLP Index going just below the important 350 level.  Junk bond funds slipped. but Treasuries are strong.  The yield on the 10 year Treasury is getting closer to the 2.4% low reached last year & 2+% lows reached during the recession.  Oil dropped on gloomy economic thoughts & gold reaches yet another record.

JPMorgan Chase Capital XVI (AMJ)

Get the latest daily market update below:

Treasury yields:

U.S. 3-month	0.005%
U.S. 2-year	0.300%
U.S. 10-year	2.541%

CLU11.NYM

....Crude Oil Sep 11

...90.39

..... 1.54

(1.7%)

GCQ11.CMX

...Gold Aug 11

.....1,678.50

... 15.10

(0.9%)

Photo:   Yahoo

The number seeking unemployment benefits dipped last week as weekly applications edged down 1K to 400K according to the Labor Dept (the lowest level in 4 months) after the previous week's figure was revised upward from 398K to 401K.  The 4-week average dropped for the 5th straight week to 407K, suggesting a downward trend in layoffs.  Applications have been at or above 400K for 17 weeks.  The Fri jobs report is expected to show employers added 90K jobs & the unemployment rate is expected to remain unchanged at 9.2%.  While that would represent improvement from Jun, when the economy added just 18K (fewest in 9 months), the economy needs at least 3 times as many new jobs to substantially reduce the unemployment rate.

Jobless Claims Fall, Signal Weak Labor Market

Photo:   Yahoo

General Motors reported profits doubled in Q2 from higher prices for its vehicles worldwide.  EPS was $1.54, ahead of 85¢ last year.  This was GM's 3rd straight quarterly profit since its IPO & 6th straight overall.  GM CFO Dan Ammann said the company gained $1B from higher prices for cars & trucks & more than half of that came from North America.  GM also has raised prices to compensate for the higher cost of raw materials such as steel. Revenue rose 19% to $39.4B, while sales rose 7% to 2.3M cars & trucks. Although sales softened somewhat in the US & Europe because of worries about the economy, GM gained market share in every region outside South America.  Although GM made $5.7B in H1, Ammann said H2 performance will probably not be as robust, since there is usually a drop in sales in the fall & the economy remains shaky.  "There's a high level of uncertainty out there," he said.  The stock fell 65¢ & is sharply below the $33 IPO price.

GM profit doubles as global sales and prices riseAP

General Motors Company (GM)

Photo:   Yahoo

Kraft Foods, a Dow stock, is breaking up just 18 months after driving through the controversial acquisition of UK chocolate maker Cadbury, into a growing snacks business& a stable but slower growing general grocery business that includes Oscar Mayer lunch meat & Kraft cheese. KFC said that it expects a tax-free spin-off of the North American grocery business to be completed by the end of 2012. KFT is the latest consumer goods company to separate its units in order to focus them better & offer shareholders distinct investment opportunities.  The stock rose 1.14 in the down market.

Kraft to Spin Off N. American Grocery Business

Kraft Foods Inc. (KFT)

The crisis about raising the debt ceiling is over (at least for the time being), but markets continue to sell off big time.  YTD, S&P 500 & NAZ are lower & Dow is just barely in the black.  It sure feels like the US economy & to a lesser extent the rest of the world are slipping into another recessionary period.  If that is the case, there is little the Federal Reserve can do & having the gov pump more money into the economy is not an option.  During these dreary time, smart investors will be looking for attractive companies to set target prices for future purchases.  

Dow Industrials (INDU)

Find out what's inside Trend TV  

Click Here

Get your favorite symbols' Trend Analysis TODAY! 

Click Here

Encouraging earnings lifts stocks

Dow gained 98, advancers over decliners 3-1 & NAZ was up 19. Markets liked earnings reports & a buyout proposal for a real estate company in bankruptcy. Banks joined in the advance, but the Financial Index is still stuck in its low level trench.


S&P 500 FINANCIALS INDEX

Value 188.59

Change 1.57

% Change 0.8%

Higher stock markets brought buyers to MLPs. Their index rose 4 to the 287s as it tries to get back to 290. The Dow Jones REIT Index was up 2, helped by the buyout of General Growth (see below). Junk bond funds were a little higher. The yield on the 10-year Treasury bond rose 2 basis points to 3.71%.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks







Oil is having a great day crashing thru the 75 ceiling with conviction. Gold is also having a good day, getting above the 1100 level.

CLH10.NYM

...Crude Oil Mar 10

...76.58

... 2.45 .......(3.3%)

Gold

1,118.20

+28.20

+2.6%

Gold Super Cycle Link! Click Here



Kraft Foods, Dow stock, reported Q4 profits surged to 48¢ per share from 12¢ per share last year. Gains came from strength in developing markets & continued benefits from its restructuring plan to focus more on its money-making products. Profits beat expectations of 45¢. But sales rose only 3% to $11B (due to a weaker dollar) & below analysts' estimate of $11.07B. KFC continued to see falling sales in the US because shoppers are trading down to less expensive, store-label brands.The food maker, which is buying British candy maker Cadbury, said it expects long-term earnings growth at the high end of its previous guidance. KFT fell 71¢.

Kraft Profit Rises as Sales Gain in Emerging Markets


Kraft Foods --- 1 year






Merck (MRK), a Dow stock & Dividend Aristocrat, posted Q4 profits sharply higher than last year. Excluding those gains from its recent acquisition of Schering-Plough in Nov, net income matched expectations. MRK earned $2.35 a share in Q4 compared to 78¢ last year. Revenue jumped to $10.1B (including a month’s worth of sales from Schering). Factoring out the acquisition, MRK earned 79¢ a share, in-line with expectations. As part of its deal with Schering, MRK said it will cut its workforce by 15% (15K) by the end of 2012, & will eliminate more than 2K spots that are vacant. This is good for the company but will also add to unemployment rolls. MRK rose 72¢.

Merck Profit Rises More Than Analysts Estimated


Merck --- 1 year





Simon Property (SPG), the nation's largest shopping mall owner, made a $10B hostile bid to acquire its ailing rival, General Growth Properties, & would allow General Growth, the #2 owner of shopping centers, to emerge from Chapter 11 bankruptcy. The offer would repay $7B to unsecured creditors & $3B to its shareholders. Stockholders would get $6 a share in cash & $3 a share in other assets. SPG has a good track record of taking over troubled real estate assets, the stock rose 1.70.

•Simon Property Group Makes $10 Billion Offer for General Growth Properties


Simon Property --- 1 year







Find out what's inside Trend TV! Click Here


Markets are having a very good day. But problems remain. Among the many, Europe is trying to figure out how to help Greece & then deal with other Mediterranean countries who are need help.

Dow Jones Industrials --- 2 weeks

Stocks and commodites rise

Global markets were higher on expectations of a strong recovery from the worldwide recession. Dow gained 46 taking (but slipping a tad in the last hour), advancers ahead of decliners almost 3-1 & NAZ was up 12. Bank stocks charged ahead, the the Financial Index needs another 6 points for a new 2009 high.


S&P 500 FINANCIALS INDEX

Value 192.44

Change 1.47

% Change 0.8%

The high yield sectors are doing well. The Alerian MLP Index went up 1½ to the 239s while the Dow Jones REIT Index shot up almost 3. Junk bond funds were higher & the Treasuries were little changed. The yield on the 10-year Treasury bond was flat at 3.45%.

Alerian MLP Index --- 1 month




Dow Jones REIT Index --- 1 month





Commodities are strong led by gold which went above the magic price of 1K per ounce. 1K has been a barrier for gold, now it will try to break thru again. As a competitive investment for stocks, its price movements are extremely important. If there is method behind the buying madness, gold is being bought on fears about how central banks will untangle from the stimulus packages when they are no longer needed. The betting is they will err, bringing higher rates of inflation.

CLV09.NYM

...Crude Oil Oct 09

...70.49

... 2.47 .......(3.6%)

GCU09.CMX

...Gold Sep 09

...1,005.50

... 10.60 .......(1.1%)

GLD (ETF) --- 2 years

Kraft (KFT), a new Dow stock, launched a bid with cash & Kraft shares to buy Cadbury, a British group, worth almost $17B. Cadbury's management is expected to mount an aggressive defense, but options are limited, especially at a time when major acquisitions are few & far between. Bets are KFT will come in with a higher price to win approval of shareholders. Cadbury shares were up 40% in the last 2 days. KFT fell 1.34 today on the news & yields 4+%.

•Cadbury May Fetch $21 Billion If Nestle, Hershey Top Kraft Food's Approach


Kraft --- 1 year




Enthusiasm is strong once again. Nothing like a major acquisition to bring buyers back into the markets, especially when there has been an absence recently of such buyouts. Major stock market averages are near highs & want to go higher. Of course, gold is also near its highs & fears could take it to new record levels. This is a major disconnect which will have to be worked out.

Dow Jones Industrials --- 1 month