Had I written this post a bit earlier, I would have started by saying how amazing it was that this market was so weak again, and unable to bounce. But since that early dip, things have turned around such that the major indexes are now all in positive territory. Maybe we can get another 'turnaround tuesday'.
Oil is back up again today, topping the $142 level again. Energy stocks are mixed, while most other materials stocks (steel, ag, copper, etc) are selling off hard. It looks like many of last quarter's biggest winners are the ones being sold today.
And the financials, which have been hit the hardest, are enjoying a small bounce. Morgan Stanley (MS) initated coverage of both Lehman (LEH) and Goldman (GS) at Overweight. Also, Bank of America (BAC) completed its purchase of Countrywide.
Fortune Brands (FO) is trading sharply lower after announcing it expect lower earnings. But for the most part, we have had very few earnings warnings. I'm not sure what that means for Q2 earnings season which starts next week. A lot will depend on the outlook of corp managements, who will likely be cautious given the environment.
The ISM Index for June came in at 50.2, higher than the 48.5 consensus estimate. The dollar is mixed today, with gold trading up a bit. The 10-year yield is lower at 3.97%. And the VIX topped 25 earlier today.
I have some graphs to post later about how oversold this market is.