Snap Crackle Fizzle

The day started with a bang, as CPI numbers rolled in confirming that inflation was not a problem. The Dow immediately gained over 100 points but fizzled to a slighter gain by the end of the day. NASDAQ actually dropped 1%. Home Depot reported a 30% decline in their numbers. Housing remains the elephant in the room. Wal Mart managed an 8% gain, but only because they cut expenses like crazy. Private equity is still on the prowl, though, and may be just what the doctor ordered! DJIA +37.06 NASDAQ -21.15 S&P 500 -1.96

Back in the Saddle

For the past week, I've been watching the financial markets from my backyard. My daughter and her husband came home for a visit, and I've been enjoying time with them. They brought a cute little puppy named Rocky with them, and we found ourselves head over heels for this furry creature. Today is my first day back in the office, and I'm noting the merger and buyout activity. Chrysler is being bought by a private equity firm. It will be strange to see this giant turn back into a private company. The CPI report comes out tomorrow, and everyone will be on the lookout for inflation. Housing is still the question mark. The news on Chrysler caused the Dow to rise, while other indexes dropped. NASDAQ fell about 3/4%. With all this loose change running around, I'll be anxious to see who'll be bought next! DJIA +20.56 NASDAQ -15.78 S&P 500 -2.70

GM Who?

GM reported earnings-- YUK! They fell 90%! Wow! Toyota has already taken the lead, and it's hard to imagine that GM will be able to reverse the trend. Despite this grim news, markets responded well today. Productivity numbers were in, and they increased 1.7%. The expectation is that the Fed will leave interest rates alone, for a while. The news on GM seemed to roll off the back of investors. Slight gains were noted on all indexes. There's been a glitch on all the banking buyouts. Stay tuned for further developments. DJIA +29.50 NASDAQ +7.62 S&P 500 +6.47

More Activity

Wall Street was abuzz again today with merger and buyout talks. Cablevision may be going private, as the founding family makes an offer. This is an IPO in reverse-- a sign that the private equity groups see value not recognized by the Street. Activity like this is a boost to all stocks. In addition, factory orders increased. In particular, orders of aircraft are up. I recognize that air travel is becoming more mundane, but it's NOT becoming any easier. Every time I have to get on an airplane, I mutter a few choice words. The Dow zoomed into the triple digit gains on the day (at one point) before settling into an increase of more than 1/2%. NASDAQ was the winner, gaining more than 1%. DJIAj +75.74 NASDAQ +26.31 S&P 500 +9.62

End of Day Surprise

Markets waffled around most of the day, then staged a nice rally for the close. Rupert Murdoch has put in a hefty bid for WSJ. I can't imagine this bellweather paper with Murdoch at the helm. Proctor and Gamble reported a nice bump up in earnings, while GM saw a decline (no surprises here). The combination created an end of the day rally, with the Dow tacking on about 1/2%, while other indexes added about 1/4%. DJIA +73.23 NASDAQ +6.44 S&P 500 +3.93