How can you tell Christmas is just around the corner if you work on Wall Street? Just look in all the empty offices. Most of Wall Street is where it is warm, sunny, beautiful, miles from a meeting room, and where the evenings are filled with island music, filled bars, and fancy foods. But, those that went paid for it with smaller bank accounts than several years ago and are glad to get away from the heat of “What’s next?” being the morning’s mantra.
Hey, we are all here, just as always. But, I do need to fess up. Truth be told, I was by the ocean several months ago to do my “getting away.” Has a great time and beat the crowds of Christmas visitors. I felt that keeping the doors open when almost everyone else is gone might be a better approach this year.
But, enough of that. Today’s action on the exchanges everywhere was light, at best. I would expect that this will likely be the case until after New Year’s Day football games. There was some overnight buying that was supported by those that did trade today, buying caused by the move made by Abu Dhabi to extend a $10 billion loan to help out strapped neighbor Dubai. Many had been hoping that some sort of help might come and it did. How much more is the big question, but many believe that there will be several more such moves before it is all over and Dubai is reduced to a shadow of its former self.
To illustrate how much of a non-news day it was, the fact that the S&P will be adding five new stocks to its 500 index and dropping five stocks made headlines some places. The stocks coming on are quit solid performers, while the ones being dropped are rather weather—beaten. You likely know by now that this is how the S&P Index continues to grow. Out with the old single digit losers and in with the double digit coming on strong companies. Don’t mean to demean S&P, of course, but they do the same thing with the Dow 30, if you ever noticed. Usually this kind of thing gets little if any attention. This time, “big news.” Oh, me.
Happy to report that bonds did steady out today and actually gained 6/32nds. As I said in the Weekly Report, this is good news. The dollar was off a bit, influenced more by news that Citibank is planning to try and exit its government involvement by paying back its TARP advance. Traders that were around felt maybe some move to the currency sidelines might be a good tactic. We will see.
Gold dropped just $5.00, but mostly in response to the selling of the dollar. No real hard news to account for any strength or weakness in the gold sector today. Copper advanced a tad, but in a quiet market, no way to know if it was inflation related or not. After the first of the year we will get a better reading on that.
Oil seems to have found some support in the $69-70 area today. Some reports hitting the wires are bearish long term the oil contracts. But, all it would take to change all that would be a flare up in the Middle East. I suspect until a better handle is gotten on how the current excess oil inventories are to be worked off, we will continue to see weakness here. May take 3-5 weeks to begin to get a handle on that, I believe.
Other than those notes, not much news to report that moved the market at all. Just a normal as usual business day during the Christmas season trading day.
So, until tomorrow, I do hope your day was a profitable one. Will be back here tomorrow, the Lord willin’ and the creek don’t rise.
NEED SOMETHING TO TALK ABOUT TONIGHT?
SIX MAJOR IMPACTS ON THE MARKET TODAY
1. Abu Dhabi gives a partial bail out to Dubai. The market lets out a sigh of relief – for now.
2. The move to the yen as the “carry trade” choice picks up some more momentum today.
3. S&P shifts their holdings again. Out with the bad, in with the good. New guys stocks all higher.
4. British Airways employees announce 12-day strike. Funny, it coincides exactly with Christmas travel.
5. House passes a $1.1 Trillion spending bill for current needs. Do they call that pocket change now?
6. NASA launches satellite to seek out asteroids that threaten Earth. Do we really want to know?
I was more interested in the NASA announcement than anything else. But then, I am a science buff. Even if they find one, how do we stop it? And hope that neither you nor family members affected by the British Airways well timed strike. The English have a way about them, don’t they. And finally, why didn’t anyone tell us what the $1.1 trillion was for? Did you see anything that laid out the use? Hummmmmm.
DAILY CHANGES
Closes as of Mon. 12-14-09 CHANGE (cash) KEYLINE# ABV/BLW
DOW INDU. 10,501.05 +29.55 points 9,846.19 ABV +655
S&P 1,108.10 +4.90 points 1,059.55 ABV +48
NASDAQ 2,190.31 +21.79 points 2076.12 ABV +114
30 YR BONDS 118 1/32 +6/32 115 24/32 ABV + 2 9/32
GOLD $1,127.50 -$5.00 $1,044.50 ABV $83.00
OIL $69.50 -$.01 $83.21 BLW $13.71
DOLLAR INDEX 76.32 -.25 79.92 BLW 3.60
COPPER $3.1525 +$.0195 $2.8873 ABV +.2552
*The name Super Chart Keyline is a registered Trademark of Max Whitmore.
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