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Briefing.com
08:35 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -2.5. Total PPI rose 0.9% (consensus 0.6%) in May. The more closely-watched core rate rose 0.2%, matching economists' forecasts; but the year/year rate ticked up 0.1% to 1.6%. Initial claims were unchanged at 311K (consensus 310K), still reflective of healthy labor conditions.
The futures market has pulled back, now signaling a slightly lower start for equities. Bonds have also weakened following the first increase in the core PPI in three months; the 10-year note is now down 9 ticks to yield 5.23%.
 
08:00 am : S&P futures vs fair value: +2.1. Nasdaq futures vs fair value: +4.3. Early indications suggest a two-day rally in equities may carry over into the opening bell. An analyst upgrade on Dow component Intel (INTC) and Nymex (NMX) reportedly exploring a possible sale are contributing to the positive underlying tone.
However, that disposition is certainly subject to change as the closely-watched CPI report (8:30 ET), given its influence on the market's outlook for the economy and monetary policy, will be the catalyst behind today's performance. A larger than expected read on core-CPI is apt to renew inflation concerns that have plagued the bond market for two weeks while a lower than expected number should lend further evidence behind recent stabilization in Treasuries that has helped stocks rebound since Tuesday's sell-off.
 
Briefing.com
08:33 am : S&P futures vs fair value: +10.0. Nasdaq futures vs fair value: +14.0. Futures trade spikes higher following encouraging economic data, pointing to an even stronger start for stocks. Total CPI rose 0.7% (consensus 0.6%) in May but the more closely-watched core rate rose just 0.1% (consensus 0.2%). That pushes the year/year rate down to 2.2%, which is closer to the Fed's "comfort zone" and will at worst keep policy makers on hold with any tightening efforts for the time being. The NY Empire State Index rose to a surprisingly strong 25.8 in June (consensus 12.0) from 8.0 in May. Bonds have also improved in response to the data; the 10-year note is now up 7 ticks to yield 5.19%.
 
OSM spiked following CPI numbers. Dollar dropped. Looks good for I-fund and good outlook for US markets. Will it reverse this afternoon/Monday? There are a bunch of bears out there. Might be a good time to go to the sidelines.... Just depends on how the US markets actually react.
 
http://www.marketwatch.com/news/sto...-4183-8125-0305572DBB0F&siteid=yhoo&dist=yhoo

BOSTON (MarketWatch) -- Stephen McKee, editor of the No-Load Mutual Fund Selections & Timing newsletter, says that investors need to "evolve with the market," which currently means backing away from some of the international funds that have been hot in recent years.
In a radio interview with Chuck Jaffe, MarketWatch senior columnist, McKee -- whose newsletter adds an element of timing to the process, frequently eliminating solid funds that are in out-of-favor sectors -- said that the international scene "is getting a bit crazy ... and we're pulling back."
 
09:00 am : S&P futures vs fair value: +4.0. Nasdaq futures vs fair value: +4.5. The stage remains set for stocks to recoup some of last week's broad-based losses. With higher interest rates acting as the biggest headwind for equities of late, and expectations the yield on the 10-year note will remain over 5% prompting us to lower our Market View to Neutral, an improvement in Treasuries ahead of today's only economic report is offering some comfort.
Existing Home Sales will be released at 10:00 ET and, since forecasts call for the lowest reading since June 2003, investors are back to pricing in the likelihood policy makers will eventually cut interest rates. Fed funds futures currently call for a 28% chance of a 25 basis point cut by year's end compared with no chance of an easing whatsoever a week ago.
 
Briefing.com
2:30 pm : A renewed wave of selling interest within the last 30 minutes now leaves the major averages trading in split fashion. With the near collapse of two Bear Stearns (BSC 138.15 -5.60) hedge funds still fresh in investors' minds, CNBC reporting that Goldman Sachs (GS 218.18 -4.22) could follow BSC on the subprime issue has taken enough of a toll on the Financial sector to push it into the red.
The absence of its leadership, coupled with potential spillover effects, is weighing heavily on overall sentiment. Not surprising, renewed hedge-fund risk is exacerbating today's flight-to-quality bid in Treasuries. The yield on the 10-year note (+12/32) has slipped two basis points to 5.07% since the last update.DJ30 +40.56 NASDAQ -0.26 SP500 +1.86 NASDAQ Dec/Adv/Vol 1679/1306/1.31 bln NYSE Dec/Adv/Vol 1718/1519/1.03 bln
 
But most of the SPX drop is related to financial stocks which make up 27% of the internals. That can turn on a dime if the Fed is compliant with a better future. I like the C fund under $17.00.
 
Birchtree said:
But most of the SPX drop is related to financial stocks which make up 27% of the internals. That can turn on a dime if the Fed is compliant with a better future. I like the C fund under $17.00.
Click to expand...

Here's hopin you're right!

Went 100% C for Tuesday.:sick:
 
Briefing.com

09:00 am : S&P futures vs fair value: +5.1. Nasdaq futures vs fair value: +7.3. The stage remains set for stocks to make another attempt to bounce back from last week's sizable declines. With yesterday marking another Monday in which there was no notable M&A activity, some deal making this morning is also offering reassurance among buyers.
Holland's Basell has agreed to acquire Huntsman (HUN) for $9.6 bln, including debt. Spain's Iberdola is paying $4.5 bln for Energy East (EAS) while Roche last night launched a hostile $3.0 bln bid for Ventana Medical Systems (VMSI). That was a 44% premium to its closing price a day earlier. Technology is also likely to offer some notable leadership today following upbeat analyst commentary on bellwethers Google (GOOG) and Apple (AAPL).
 
Briefing.com
08:33 am : S&P futures vs fair value: -11.1. Nasdaq futures vs fair value: -9.8. Durable Orders fell for the first time since January, checking in with a larger than expected decline of 2.8% for May (consensus -1.0%) given a decline in aircraft orders. Non-defense capital goods orders excluding transportation, which provide a clearer read on business capital investment, fell 3.0%. Futures trade has dipped further below fair value following the weak data, signaling an even lower start for the cash market. Bonds, though, have strengthened as the 10-year note is now up 10 ticks to yield 5.03%.
 
09:00 am : S&P futures vs fair value: -11.3. Nasdaq futures vs fair value: -10.3. Bearish bias persists in pre-market action, stalling any chance for the bulls to recoup some of last week's sizable losses. Meanwhile, with higher interest rates acting as the biggest headwind for equities of late, Treasury yields are falling for a fourth straight session. However, with renewed concerns about an unwinding of the so-called carry trade and underlying subprime concerns contributing to the flight-to-quality bid in bonds, the yield on the 10-year note (+11/32) slipping to 5.03% is doing little to comfort equity investors. Expectations that the yield on the 10-year note will remain over 5%, which has stalled the market's upward momentum, recently prompted Briefing.com to lower its market view to Neutral.
 
Briefing.com
11:30 am : The indices continue to chip away at early losses as the bulk of industry leadership is now positive. Of the six sectors posting gains, Utilities (+0.7%) is pacing the way as another pullback in interest rates gives bargain hunters a reason to jump back in to the beaten-down sector. It was down 4.4% last week alone.
The 0.5% advance in Technology, though, is the bigger story behind the broader market's improved stance. Tech accounts for 15% of the total weighting on the S&P 500 compared to only a 3.7% contribution from Utilities. Other areas of support now include Health Care, Staples, and Discretionary; but gains of only 0.2% on all three explain why the market's progression isn't more pronounced.
 
The major averages continue to hit fresh session highs going into the close as buyers remain in complete control of the action. As reflected in the A/D line, advancers on the NYSE now hold a more than 2-to-1 edge over decliners while those on the Nasdaq hold a 19-to-10 margin. The ratio of up to down volume further dictates the mass exodus on the part of sellers running to cover their short positions.
As an aside, Industrials finally turning the corner, as transportation stocks continue to show good resilience in the face of a 1.8% jump in oil prices, now leaves all 10 economic sectors in the plus column.
 
Briefing.com
08:35 am : S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -0.5. As expected, Q1 GDP was revised slightly higher, but barely. The final read checked in at 0.7% (consensus 0.8%), up from a preliminary read of 0.6%. The chain deflator, a key inflation measure, unexpectedly rose to 4.2% (consensus 4.0%) from 4.0%. Initial claims fell 13K to 313K (consensus 315K).
The response in stocks so far has been relatively muted given the Q1 GDP report's predictability; however, futures were trending higher ahead of the data as investors revisit the idea that policy makers will exclude the word "elevated," as it relates to inflation, in today's closely-watched Fed statement. Bonds have also barely budged on the news; the 10-year note remains unchanged yielding 5.08%.
 
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