Oil Breaks Below $140: Time To Get Excited?

Oil is breaking below $140 this morning, trading as low as $136. We have seen many of what looked like sharp price breaks in crude over the last several weeks, but each time oil has come bouncing back by day's end. So let's see if this decline holds.

While lower energy prices are certainly a positive for most of the market, in the short-term, energy and materials stocks are taking it on the chin, and this is likely weighing on the gains in the indexes.

Financials are lower after May pending home sales came in weaker than expected (-4.7%), and regulators told IndyMac (IMB) that they are no longer well capitalized. Seperately, Bernanke said that the Fed may extend its lending to Wall Street firms into 2009, but this is not helping the brokers so far.

VMWare (VMW) is down -25% today after announcing revenue growth will be below prior guidance. It also said its CEO is leaving. Office Depot (ODP) is also lower after reporting a -10% drop in same-store sales.

Asian markets were lower across the board overnight; the dollar is firm this morning, and the 10-year yield is a bit lower again to 3.89%. The indexes are all in negative territory as of now. Turnaround Tuesday?