May 24, 2012
Once again the broad markets recover in the final hour to save what had been an otherwise abysmal day. The Dow Jones Industrials (INDEX: ^DJI ) sprinted out of the hollows and finished the day up 0.27%. The story is the same as yesterday, with reassuring news coming from overseas leading to a sudden rush of buying. Oil also recovered from its lowest point this year as talks continue in Iran over its nuclear program.
A pair in the making
Today Kinder Morgan (NYSE: KMI ) completed its acquisition of El Paso, which is great news for Kinder Morgan Partners (NYSE: KMP ) , which will receive the majority of the El Paso pipelines. This move will also make Kinder Morgan the fourth largest energy company in the United States while it controls the largest set of pipelines in the United States.
In the Dow, industrials and materials were the laggards of the day. News out of China that growth could be slowed by increasing inflation and talks of tightening interest rates means the world's second largest economy might not be able to kick-start faltering economies elsewhere. On the China news, Caterpillar (NYSE: CAT ) slumped today, down 1.14%, as foreign markets make up a significant amount of the company's growth.
Hewlett-Packard (NYSE: HPQ ) finished the day with the highest gains of all Dow components after the company narrowly beat earnings estimates yesterday and announced it will lay off 27,000 employees. The company is reacting to a slowing computer market as more and more consumers are substituting new computer purchases for portable electronic devices and phones.
Tomorrow wraps up the trading week before an extended weekend, and we will have to wait and see whether news from Greece will shake up the markets and increase volatility after a day where new signs of a global slowdown reared its head. Computer and manufacturing companies have been decreasing their purchasing, so it should be to your benefit to read this free report on three American companies that construct products that are sizzling in emerging markets. This report details the three companies and examines why they're so enticing in foreign markets -- as well as your portfolio.