Dismal Retail Sales Weigh On Market

Retailers are not reporting very strong results currently, just ask Lowe's (LOW). The company lowered guidance materially, and said that too many uncertainties exist to call the bottom. Also, Target (TGT) lowered its September same-store sales forecast. The combination pushed the retail index down to a -3.0% decline in early trading.

Homebuilder Lennar (LEN) also posted dismal results, posting a net loss vs. the consensus for a gain. The company has cut its work force by 35% and anticipates futher job losses. The homebuilder index is down -2.1% currently.

Existing home sales fell -4.4%, and the Cash-Schiller index showed U.S. home prices declined again in July, posting their steepest drop in 16 years.

AAPL and MSFT are higher so far, and this is helping the Nasdaq 100 stay in positive territory.

This week brings quarter end, so if window dressing comes into play, it should mean any pullback is shallow and buying pressure should exert itself towards the latter part of the week.

long AAPL, QQQQ