Stocks higher

Stocks had pretty much an up day. The Dow ended up 207 with advancers beating decliners 4-1. But all is not well. MBIA, a prominent bond insurer & one of the very few companies whose bonds are rated AAA, has all but lost the AAA status & may be facing even bigger problems just remaining alive. Dow pulled back in closing minutes related to increased worries about them. Google (GOOG) reported after hours & the market did not take it well, sending the stock down 50 points. This has been a down month for Jan. Since 1950, that measure has predicted a down year for stocks. Traditionally Feb is a flat month. Gold is up to 928 & volatility in the market remains. Watch out for tomorrow's markets.

MBIA reports $2B loss

What's going on with the economy is today's big question. MBIA (MBI) just reported a $2B loss but the stock is up 1.15. Dow is up 49. Loan probl ems contnue, not to mention weak housing & retail sales.

Stocks recover after early losses

Stocks recovered after early losses. Dow is up 80, advancers over decliers 2-1 & NAZ up 11. The stock market is trying to figure out what's going on in the economy given confusing signals. Gold is at record levels around 930 while the Treasury bond yields 3.65%, a little higher than a few days ago.

Little changed after FED rate cut

The FED's rate cut of 50 basis points was well advertised, hardly a surprise. In the last few days the Dow rose almost 500 points in anticipation of the cut. Today, Dow slipped all of 37 points while NAZ dropped 9, rather quite when compared to recent swings. Now that it's over, back to earnings reports & watching for downgrades.

Amazon (AMZN) reported after the close, beating estimates but pulled back over 2 in after hours trading. There is a gloomy feeling about this year's retail sales which AMZN is caught up in. Of course, a P/E over 80 may require even higher expectations from the market.

Stocks lower ahead of meeting

Stocks pulled back ahead of the FED meeting, Dow down 50 & decliners over advancers 3-2. Not much to do but wait.

UBS (UBS) reported a very ugly Q4, over $14B loss due to bad sub-prime loans. Merck (MRK), a Dow stock, & Yahoo (YHOO) are down after earnings announcements. Merck set aside almost $5B for claims against Vioxx.

Asian markets mixed ahead of FED meeting

Asian markets are mixed as they wait for tomorrow's FED meeting. As in the US, they expect an interest rate cut of at least 50 basis points. China's bad weather is a major news story. Between extreme cold & heavy snow, this is the worst winter in 50 or 100 years depending on the news report. China is deploying 500,000 troops to help people cope. As the Chinese new year approaches, the weather makes it difficult for many to reach their destinations. This weather will reduce exports, China exports almost $1B to the US every day.

Stocks up on hope for a rate cut

Stocks moved up on hopes for a rate. Dow was up 96, near the highs for the day, advancers beat decliners 2-1 & NAZ rose 8. Everybody is assuming the rate cut will be at least 50 basis points although I just heard somebody suggest only 25 basis points & that would be just fine with him. Hmmmmm!!

Last year, home foreclosures rose 79%. No matter how much the FED cuts the interest rate, home problem loans will continue. Google (GOOG), hosting my web site, was down 5 today & another 5 after hours. Their earnings should be out soon & maybe not so good. Earnings reports will continue but tomorrow will be the big day with the FED announcement.

Bulls are back

Bulls are busy buying stocks. Dow is up 111 & advancers over decliners better than 3-2. The House approved the economic recovery plan which includes tax rebates for individuals of $600, marrieds $1200 & breaks for business. Now it's up to the Senate where the tax package's approval is considered fuzzy. The Senate has already added billions for seniors & unemployed among other things. At least the FED's decision will come first.