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Chrysler Spreading Word of Its Turnaround Plan?

Midday, the Dow has moved over 200 points from its high to its how, despite:

1) Horrendous economic news (durable goods, new home sales coming in at the lowest levels since 1991),

2) Poor earnings commentary from Deere and Tiffany (Tiffany flat-out declined to provide 2009 earnings estimates).

There are a couple offsetting factors:

a) Home builders are putting in a second strong day...why, if new home sales were so poor? Because though sales were poor, construction has been dropping even more, so the inventory of unsold homes is down dramatically...if fact it is at the lowest levels since June 2004.

b) Two big financials have successfully floated large bond offerings. Morgan Stanley has followed Goldman Sachs by pricing $5.25 billion in 2- and 3-year bonds, as has JP Morgan , which also priced $5.5 billion in bonds. Both offerings are backed with the explicit guarantee of the U.S. government under the Temporary Liquidity Guarantee program.

c) Autos and auto parts makers are trading up on word from Chrysler that they are readying detailed proposals for a "viable" turnaround plan to be presented to Congress next week.

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