Following the Ryan Care Flop or “RCF” on Friday, the markets opened the trading week on a lower note but then buyers came off the sidelines and quietly started snapping up equities. At the close the Dow was lower by 45 points on heavy volume to end at 20,550. The NASDAQ meanwhile was higher thanks to a reversal in tech and travel stocks.
NADA or The National Auto Dealers Association reported that due to a glut of used cars coming off lease agreements the prices of used cars are dropping like hot potatoes. NADA said the most recent reading was a February drop of 8% YOY and represents the biggest decline since November 2008. Used car prices have been falling for 8 consecutive months and the gurus are expecting companies like Ford, Hertz and Ally Financial to feel the heat as they try to sell fleet and lease vehicles.
Over in Europe the business confidence readings continue to move higher despite political turmoil in various parts of the region. The European Union also approved the merger between DuPont and Dow Chemical. The new company will be called….. “DuDow”?
Oil prices were lower with WTI crude falling another 30 cents a barrel to $47.79. The rumors out there today involve OPEC not being able to maintain the production cuts. These of course will be replaced by rumors about how the production cuts will be maintained. One thing for sure is that US production is on the rise.