Good morning. Expectations for another strong Tuesday are low and instead we are facing a very weak open for the market.
Analyst downgrades are sweeping the Street this morning from the largest firms including Goldman Sachs (GS). Add that to disappointing guidance from Nokia (NOK) and Merck (MRK), more fear over SIV exposure, uncertainty over next week's Fed meeting, and weakness in overseas markets and you have a day fit for the bears.
Premarket gainers: JMBA, PWRD, PZE, EPCT, SEED, ARW, DELL, CRMT, MBLX, CPKI, ATVI, MOS, NKE, PAY, PCR, LKQX, and INFY.
Premarket losers: NFI, TRMP, XMSR, SIRI, NOK, PVH, BCS, DRYS, HOLX, ERIC, CSUN, ISLE, JRJC, CROX, GOLD, RFMD, ORCL, RIMM, MDU, DSX, EXM, ARBA, MRK, BPHX, RIG, STKL, and AAPL.
Unfortunately, we have no data and no Fedspeak today so if the bulls are going to fend off the bear attack this morning they have to reach down from within to muster up some courage. The same levels I mentioned last night are in play this morning - S&P 1425 to 1450. Ideally, we want to see a test of that area and then some market strength (and then a late day recovery). Given the lack of any meaningful positives to work with, that's going to be a tall order.
