Stocks opened in the red but then moved into positive - Sabah

Stocks opened in the red but then moved into positive territory before dipping back in to close slightly in the red. Driving stocks lower was the technical overhang from the treasury markets.

As discussed, dealers are loath to take more risk heading into year-end and are already very much long treasuries.

This player was surprised today; corporate credit spreads closed slightly wider (albeit on very thin volumes).

Still, however, spreads are looking for an excuse to rally and moved tighter every time stocks turned green.

New GM (General Motors) CDS (credit default swap) contracts started trading with some dealers holding back on making markets as the issue of deliverables has not been fully resolved just yet.

Billionaire investor Carl Icahn is to buy the part of energy company Dynegy that he does not already own for $665 million after helping the company defeat the Blackstone Group's lower offer not long ago.

REIT (real estate investment trust) and mall operator Simon Property Group offered $4.8 billion for a British mall chain.

Hedge fund guru Jim Chanos, known for his contrarian views on China (similar to this player's), is in the process of raising a new fund.

There is increasing chatter across Washington of the programs that are most likely to take cuts as there is a newfound political impetus to tackle the deficit.

Alternative energy is likely to be one of the areas hit hard by a cut-back in Federal funding which might help explain the flurry of M&A activity in the energy space (coal, natural gas etc.).

And in other news, Yale men's hockey team was recently ranked #1; players should check out the architecturally spectacular hockey rink the next time they make it to New Haven.

Housing starts, building permits, and initial jobless claims numbers are out tomorrow.