Futures are down, but don't read this as a refutation of President-elect Obama. The S&P 500 has moved 11 percent in the past week, and many traders went home short on simple profit-taking.
Germany passed a $64 billion economic stimulus package today, which includes funding for infrastructure projects. Italy is working a plan as well. Expect the U.S. to follow. Libor down 18 straight days, near 2.5 percent. The ADP report on private jobs showed a bigger loss than expected. Commodities are mixed, gold is flat but gold stocks like Goldcorp and Yamana are weaker.
1) Obama is a big backer of alternative energy, but alternative energy stocks like Clean Energy,Suntech Power, Yingli Green, and Evergreen Solarare trading down this morning.
That's because California voted down Proposition 7, forcing California's electric utilities to get 50 percent of their power from alternative energy by 2025, which would have been an increase of the current goal of getting 20 percent by the end of 2010. Another proposition would have offered rebates for cars that offered alternative fuels; it too failed to pass.
2) ArcelorMittal, the world's largest steelmaker, down 17 percent, is cutting production as prices fall. That has implications for coal stocks, as any pullback in steel production will reduce demand for coking coal. U.S. Steel down 6 percent as well.
3) Time Warnerup 3 percent, they beat however they lowered full year profit forecasts by a few cents, perhaps less than expected.
4) Libor may be going down, but mortgage rates remain stubbornly high, with 30-year fixed rate mortgages going to 6.47 percent last week, close to the highs we saw last summer. This is hurting the purchase market and killing the refinance business.
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