Disappointing Economic Data Weighs on Market

The market has come under just a bit of pressure in early trading. The bulk of the retailiers reported November sales this morning, and for the most part the reports were a little disappointing (more on that in a later post).

The Chicago PMI was weak at 49.9, which further weighed on the market. This sign of economic weakness is also pushing bond yields lower, with the 10-year back at 4.48%.

If weakness in the manufacturing sector persists, it could pressure the Fed to cut rates sooner rather than later. Before today, the fed funds futures were predicting roughly a 50% chance of a rate cut by March.

Oil is higher again today, briefly touching the $63 level. This is likely also keeping a lid on the rest of the market, save for the energy stocks.

I would prefer to see the market chop around in a sideways fashion for a little while, before another push higher into year-end.

In other news and notes:

• Clothing retailers mentioned negatively in Barron's
• Asian markets up strongly overnight
• TIVO downgraded to Sell at Oppenheimer
• NVLS downgraded to Sell at Stifel
• Needham raises AAPL tgt to $115
• TGT Nov. sales increase +5.9% (vs. +5.7%)
• DGIN up +16%, to be acquired by INTU
• SNPS raises guidance; stock higher
• Cingular announces availability of BlackBerry Pearl (RIMM)
• SCSS lowers guidance; gaps lower
• Algerian oil minister says OPEC likely to decide to cut output in December
• OFHEO says US house prices +7.7% in Q3 vs. year-ago

long AAPL