Slight Profit Taking In Early Trading
The market is seeing some profit taking after yesterday's strong rally. The media is quick to point out the weak pending home sales report that came out this morning, but the homebuilder stocks are up, so that theory doesn't hold much water.
There was some deal activity today, as TD Financial Group (TD) is buying Commerce Bancorp (CBH) for $8.5 billion. This is helping push the financials and brokers higher.
The dollar is also stronger this morning, which is accompanied by a bid drop in both oil and gold. The energy stocks are down across the board, and this is likely what is weighing on the market. When a group of leading stocks like the energy complex sells off, it often hurts the overall market in the near-term. But longer-term, a continued drop in oil prices would be cheered by investors.
Asian markets soared overnight, with some of them hitting more record highs. Greenspan commented that China looks like a bubble? Gee, thanks Al.