Monday Morning Musings

Not a lot in the way of news this morning. The markets are under light selling pressure in early trading, much of which is likely due to weakness in Europe after a "run" on the Northern Rock financial institution in the UK.

There is also likely some nervousness over the Fed meeting tomorrow, and whether or not they will be as accomodative as the markets are hoping for. I am still skeptical of that, as this Fed seems to be more of the "tough love" ilk. As such, I am bracing for a pullback this week.

In addition to the FOMC meeting, all eyes will be watching Lehman Bros. (LEH) earnings report tomorrow, to gauge the extent of the damage to the company's earnings from this whole subprime debacle and credit crunch.

Asian markets were mixed overnight, with Hong Kong pulling back, but China making a new high.

Bond yields are up slightly, with the 10-year around 4.48%. And oil is higher, but still below the psychological $80 level.