Markets Drive Over Auto's Bad News

"I dread looking at Wall Street tomorrow. It's not going to be a pleasant sight." Senator Harry Reid, Thursday night. Gee, Mr. Senator, don't get into the stock commentary business.

The markets today continued to rally in the face of bad news, as it has been doing for the past two weeks.

More accurately, the market was mostly flat, with a few more advancing than declining stocks, but many stocks were just fractionally on either side of positive or negative.

Real estate investment trusts (REITs) had a great day because General Growth Properties announced it successfully refinanced almost $900 millino in debt, though there are still other debt deadlines the company is facing. Up 27 percent.

Financials like KeyCorp , Citi , Bank of America , and US Bancorp were fractionally on either side of positive or negative on light volume.

The weak spot today was energy stocks, where several E&P names like Devon and EOG and oils like Occidental were on the downside 2 to 6 percent, but these stocks have had nice moves up earlier in the week.

Goldman Sachs cut its 2009 outlook for oil prices to $45 a barrel.

Are we at a bottom? Bears insist there will be more redemptions after Jan. 1 that will pressure the market, and the economic news will still come in worse than expected.

Next week, the big news will be Goldman's earnings (see my earlier note) Tuesday and Morgan Stanley on Wednesday.

For the week: tech was a standout, with the NASDAQ up 1.6%; Dow and S&P down fractionally, Transports the big loser, down 5.8 percent.

- The Dow 30 at a Glance


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