Markets mixed (up) again

Stocks are still looking for direction. Dow is down a little with advancers slightly ahead of decliners & NAZ up a little. The economic news was negative. Employers cut jobs by 80K last month, not as bad as some feared but still a solid minus. The national unemployment rate rose from 4.8 to 5.1%, another indication that recession if not here is around the corner. These figures from the Labor Depart underscored the damage that a trio of crises, in housing, credit & financial sectors, has inflicted on companies, jobseekers and the economy as a whole. The unemployment rate was the highest in 2½ years (a period following destruction from hurricane Katrina). Gas prices reached a record $3.30. With oil over 100, prices are poised to go higher

Yesterday, San Francisco Federal Reserve President Janet Yellen warned that "economic prospects remain unusually uncertain" & continued that the FED must be ready to act in a timely manner to spur the economy to keep it out of a recession. Yellen said that the slowdown started in the Q4, when the economy "slowed to a crawl." The housing downturn is one of the major risks to the economy & it isn't likely to improve until next year at best. Gloomy thoughts!

Next week, Alcoa (AA), will be the first Dow company reporting earnings. This will give an early signal about Q1.

Stocks eak out another gain

After stocks struggled in a choppy day, they eaked out another gain. Dow was up 20, advancers ahead of decliners 3-2 & both NAZ & S&P 500 inched up. Financials & real estate led gainers. MLPs continue to rebound from their recent lows. The index is 282.90 up 17 from it's recent low (but still down 60 from the highs of last year). Once again, volume was "light" indicating a lack of conviction by buyers. The afternoon was a little higher, so Bernanke's testimony must have inspired a little confidence. These hearings are important as they will shape future legislation on security regulation (even if that's still a year away). Bernanke defended FED's actions during a brutal couple of days for the FED. Many on TV give him high marks although these actions may not affect the next ugly financial situation.

In the markets, rice hit a record anticipating higher demand (i.e primarily from lesser developed countries) while corn reached $6. Corn is the leading US export crop, strengthening in anticipation of higher worldwide demand for this product. But the US economy struggles. The jobs report reported earlier keeps pointing to the idea of recession. The number of unemployment applications is 407K, above 400K is considered a serious threshold (higher indicates a very weak economy). American Bankers Assoc said the number of Americans falling behind on debt rose 2.65% & is at the highest level since 1992. The US economy keeps struggling, while overseas markets, especially in eastern Asia, are doing well.

Markets are giving back recent gains

Markets are pulling back; Dow is down 42, decliners ahead of advancers 3-2 & NAZ declined 14. The Labor Dept reported jobless claims jumped 38K last week, an unexpectedly high number. Claims are at the highest level in 2½ years. Congress is getting more testimony from Bernanke, head of the FED, concerning the demise of Bear Stearns & the FED's role in keeping the markets quiet. Jamie Dimon, CEO of JP Morgan (JPM), a Dow stock, down 62¢, said they wouldn't have bought Bear Stearns without the FED's help. Not sure much new will be learned but this is a good chance for members of the committee to get national TV exposure.

Financials are leading the decline. Banks & REITs are lower although the MLP index is up 1.60. Research in Motion (RIMM), following yesterday's optimistic report about selling more Blackberrys, is up 6.60. Markets look like they will repeat prior weeks performance, selling off after a sharp gain. With the focus on testimony in Washington today, tough to see an up day.

Stocks search for direction

A day like yesterday is tough to follow, so stocks went searching for direction. To some this seems like a bear rally again. Recently there have been a number of big gainer days followed by disappointment. Tomorrow, Ben Bernanke, the FED Chairman, will testify about the Bear Stearns story. This is politics in an election year, so he will be on will be on defense all day.

Dow was down 45 & NAZ was essentially even while advancers beat decliners 3-2, a confusing day. OK, Dow was hurt by Merck dropping 1.22 following the recent problems with its Vytorin. Volume has been running mediocre a little under 1½B per day, another sign about lack of conviction. Bloomberg TV had a story about money market funds that now have 3½T (that's T as in trillion dollars). A lot of frightened money is willing to accept 2-3% interest, a rate that will continue to decline, rather than invest in the stock market.

In company news, Merrill Lynch (MER) announced it was cutting up to 10% of the non-broker staff, bleeding has not stopped. Research in Motion (RIMM) reported excellent earnings after hours, sending the stock up 4.84 in after hours trading. This should help NAZ tomorrow. Bigger picture, watch for headlines to drive markets especially on the downside.

Markets inch up

Markets are trying to work they way up. Dow is down a little but advancers beat decliers 2-1 & NAZ is up 12. Not too bad after yesterday. Chairman Bernanke, from the FED, said he doesn't expect a repeat of the Bear Stearns failure a couple of weeks ago. But he warned of a possible recession, they are trying to steady a shaky economy. Mortgage applications fell 28% during the week ending Mar 28 after a 41% decline in the prior week.

Best Buy (BBY), up 75¢, reported slightly lower profits which beat analysts forecasts. The markets are absorbing yesterday's gains pretty well, but economic news continues gloomy.

Stocks start Q2 with a surge

Stocks started Q2 with a surge, wiping out 40% of the decline from Q1. Not bad! Dow was up 393, advancers ahead of decliners 5-1 & NAZ up 47. Financials led the way, many up 5-10%. The markets were buying the idea that the financial crisis is over. The good news on the economic front was the Institute for Supply Management reported its March index of national manufacturing activity rose to a reading of 48.6 -- indicating a contraction, but a slower one than in Feb. This reading was better than forecasts by analysts helping bring out buyers. However, below 50 is considered bearish but "less bad" carried the day.

Back to economic news, automakers reported March auto sales were down. Let's see what tomorrow brings in the markets.

Construction spending falls again

Sorry, but dreary economic news which has been forgotten today. Construction spending fell again in Feb. Home building declined for a record 24 straight months. The Commerce Depart reported overall construction activity dropped 0.3% in Feb, reflecting weakness in home building & in nonresidential activity. Only government building projects showed a gain in February. The US economy remains weak.

New month, new quarter, new start

This quarter starts off with a big bang. Dow is up 220, advancers ahead of decliners 4-1 (although not as great as other big days) & NAZ is up 42. Today's another one of those days, to find winners just throw darts. Banks & financials are leading the rally but MLPs, REITs & even junk bond funds are joining this time.

Markets were moved by UBS (UBS), up 3.16, announcing it's seeking $15B in new capital while ignoring the $19B additional losses in mortgages expected in Q1 following $18B losses last year. Lehman (LEH), up 2.49, announced it's raising $4B by selling 3MM of new convertible preferred shares due to "investor interest." Deutsche Bank (DB), up 2.90, announced write-downs of $4B for bad sub prime loans. I don't know! Let's see how long this enthusiasm lasts.