Market Poised For A Day of Rest
The market has opened under selling pressure on the heels of a weak retail sales report, and ongoing woes in the subprime market. NEW said the SEC has subpoenaed documents, and LEND said it needs to raise new funds to cover the risk of default.
The Asian markets fell overnight, while the Yen rose in value. These are also pressuring the U.S. markets at the margin.
The weak economic data is pushing bond yields lower, with the 10-year completely erasing Friday's big spike higher, and trading down to 4.50%. The odds for a Fed rate cut also rose on today's news.
Oil is up this morning, yet another headwind, to $59.50. But it is still below $60, and it looks like the recent uptrend is broken.
Nearly all of the major sectors are lower so far today. Biotechs are higher, but homebuilders are down a lot, and banks are weak also. Turnaround Tuesday? Maybe.