Dow & NAZ are about even while decliners are slightly ahead of advancers. In the Dow 30, General Motors (GM) & Citigroup (C) are under 10 while Alcoa (AA) is just over 10. In the old days, under 10 signaled a very speculative stock. Speaking of down on their luck, American Express (AXP), another Dow stock, is at a 12 year low & probably headed even lower:
American Express --- 37 years
S&P 500 FINANCIALS INDEX is down pennies, the Alerian MLP Index is down 3½ to 189, Dow Jones REIT index is down pennies at a multi year low under 131. The VIX, Volatility Index, dipped slightly to under 66.
Oil rebounded a little, but the fundamentals continue bearish on expectations of lower worldwide demand:
| CLZ08.NYM |
Crude Oil Dec 08 |
....57.61 |
.... 1.45 (2.58%) |
|
The Labor Dept reported jobless claims jumped 32K last week to 516K, higher than expected & almost matched 517K claims in 2001. This is only the second time in 16 years that claims exceeded 500K. An important sign of a recession is when jobless claims are above 400K.
Almost 280K homes received a foreclosure notice last month, 5% over last year's figure. The number of homeowners with foreclosures in Oct grew 25% above last year.
Wal-Mart (WMT), a Dow stock, feels good about THEIR holiday sales. Their guidance for 2008 EPS is $3.42-3.46, up from $3.16 last year. But this projection is down from the prior guidance of $3.43-3.50. Analysts are estimating $3.48 for 2008. The stock fell 73¢ on the reduction in earnings guidance.
•Wal-Mart Says It's `Optimistic' About Holiday Sales; Earnings Advance 9.8%
I feel sorry for the Treasury & Federal Reserve trying to solve seemingly impossible problems for the financials. But that's the world we live in & markets are reacting. More grim news on the economy, etc. will keep coming.
