Wednesday, December 02, 2009
What Was All That Fuss About Dubai?
December got off to strong start with the Dow hitting a new high for the year. The blue chip index added 126.74 points to finish at 10,471.58. The SPX gained 13.23 points to end at 1,108.86. We are in the green and looking ok.
All worries about Dubai seem to have basically evaporated. Dubai World, which holds about $60 billion in loans to various banks etc, stated it would restructure $26 billion of this debt to help avoid defaults. And when you actually think about it $60 billion is not that much considering AIG alone was bailed out for over $120 billion!!
In economic news, the ISM Mfg. Index fell 2.1 points in November to a level of 53.6. This was a bit below expectations, but the manufacturing sector remains in expansion territory. In fact, the new orders component was strong, rising 1.8 points to a level back above 60.
Another positive was the fact that the employment component remained above 50 at 50.8. Traders think this bodes well for the payrolls report due out Friday.
Until next time.
All worries about Dubai seem to have basically evaporated. Dubai World, which holds about $60 billion in loans to various banks etc, stated it would restructure $26 billion of this debt to help avoid defaults. And when you actually think about it $60 billion is not that much considering AIG alone was bailed out for over $120 billion!!
In economic news, the ISM Mfg. Index fell 2.1 points in November to a level of 53.6. This was a bit below expectations, but the manufacturing sector remains in expansion territory. In fact, the new orders component was strong, rising 1.8 points to a level back above 60.
Another positive was the fact that the employment component remained above 50 at 50.8. Traders think this bodes well for the payrolls report due out Friday.
Until next time.
# posted by Paul @ 2:55 AM 
