Early Look: Market Giving Back Some of Yesterday's Gains

The market is lower in the first hour of trading, but it is still early. I would say that if we give back half of yesterday's big move, that would be considered a "win" for the bulls. The levels I am watching would be for the S&P 500 to close above 880, and the Nasdaq to close around 1550.

The FDIC issued a proposal this morning for loan modifications. The plan includes having servicers cover the expenses and loss sharing in the event the modified loan falls back into default. The FDIC estimates the program could apply to some 1.4 million non-GSE loans.

Nokia (NOK) warned that Q4 industry volume would decline (gee, thanks for that). While the news isn't surprising, it is impacting stocks like Apple, RIMM, and QCOM.

Ditto for the warning from several retailers this morning. Kohl's, Nordstrom, JC Penney, and Abercrombie all said Q4 would be weaker than expected. No surprise there, as consumers are simply cutting back, and higher priced items will likely be the ones that see the biggest dropoffs in sales.

Asian markets were mostly higher overnight following the rally here in the U.S. The dollar is higher today, which is pressuring commodities. Oil is back down to $56.50 after a big pop yesterday. The 10-year yield is down to 3.71%. And the VIX is up +5% to 62.75.

long AAPL, RIMM