Daily Investment Interpretations

November 7, 2011

2011-11-7: (Monday Night): U. S. stock market indices ended up somewhat today, after falling and then rising again: Stocks tilt higher, Stocks Shake Off Italy Worries; Move Higher. The NASDAQ Composite gained 9.10 points (0.34%) to close at 2,695.25. The Dow rose  85.07 points (0.71%) to 12,068.39; the S&P 500 advanced 7.89  points (0.63%) to settle at 1,261.12. Oil rose to 96.00: Bearish oil forecast; Oil reverses course to end at 3-month high; gold jumped to 1,798: Gold tops $1,790 to end at over six-week high, Peter Brimelow: Gold shares may begin to lead. The VIX dropped 0.28 points to 29.88.
    After winning a confidence vote on Friday, Greek Premier George Papandreou has agreed to (been forced to?) resign:
Report: Papandreou To Step Down In Deal To Back Greek Bailout, Greek Leaders Agree To New Coalition Government; Papandreou to Resign. This has put Greece on a back burner for the time being. But With Greece Resolved It's All About Italy Now. Yields on Italian 10-year bonds have hit an all-time high. Meanwhile, we have Germany's Industrial Output Dives in September and Eurozone Retail Sales Below Consensus Expectations. At the same time, France Taking Preventive Measures to Cut Costs. Can you believe this? Europe is already tottering on the edge of recession and now France is cutting back.
    The article, Disappointing Europe at low ebb in the East, written by Marketwatch' David Marsh, describes the loss of respect Asiatics are developing as a result of the follies of the Eurozone members and leaders.
    Here's an article by Paul Krugman that quotes another economist's way of viewing what's going on in Europe: Permanent Link to Wishful Thinking And The Road To Eurogeddon. Dr. Krugman also mentions that "The European Central Bank also went all in for the doctrine of expansionary austerity, aka belief in the confidence fairy."
    Europe is obviously continuing to unravel. 
Health care needs a revolution, doctor says. I found this a very interesting article. The sub-title is  "The U. S. system is a 'body shop' that aims to protect profits." It continues, "Health care needs a total revolution so it starts promoting and paying for health instead of disease. Thatís the conclusion Dr. Walter Bortz has come to after writing 150 scientific articles, authoring seven books and spending 40 years as a geriatrician at the Palo Alto Medical Clinic. He is a Stanford University professor of medicine who at age 81 still runs multiple miles three times a week and keeps a rigorous travel and speaking schedule."
    The World Health Organization ranks the U. S. in 34th place, one notch above Cuba (in 35th place). I agree that the U. S. health system is focused on repair rather than on prevention, and I agree that medical costs are spiraling out of control. When I listen to food ads on TV, they're all about how tasty their new bacon-double cheeseburger or hot fudge sundae is. 
    Ed Keon: Expect volatile trading thru December. He thinks that rising earnings will propel the U. S. stock market higher.  

    State of the Markets articles include:
    Technical Talk: Riding The New Range?    
    Italy's Rates Surge Over 6.5%; Why You Should Care  
    Consumer Credit Above Expectations in September  
    Market futures are neutral tonight.