Retail Stocks Weighing On The Market

Lots of crosscurrents in the market this morning. Some weak earnings reports from LIZ, CC, and UA are really weighing on the retail stocks. Centex (CTX) also said its results were disappointing, and that they are facing one of the most difficult markets in 25 years.

It didn't help that this morning's pending home sales report came in at -4.9% vs. expectations for +0.4%. That's quite a bit of weakness. I don't think the homebuilders have bottomed yet.

The ISM Index was strong at 54.7 vs. 51.0 consensus. This report is volatile, but it does show a strong bounce in the manufacturing sector. While housing is weak, industrial production is strong.

Asian markets were lower overnight, and oil is down a bit also this morning. Bond yields are a touch higher, with the 10-year yield at 4.65%. But selling pressure is heavy. The ARMS Index is already at 1.50, and the put/call was elevated yesterday as well.