Good morning. We have weakness in the premarket futures this morning amid continued fears that the financials are in trouble and will suffer larger-than-expected writedowns.
American Express (AXP) issued a profit warning and write-down and rumors of many more to come from the likes of
Citigroup (C) and
Merrill Lynch (MER) are swirling. Yesterday,
Bank Of America (BAC) agreed to buy
Countrywide (CFC) for less than its market value and there's talk of more to come including
JPMorgan (JPM) and
Washington Mutual (WM).
Beyond the financials, the November trade deficit widened to the highest level in more than a year following a record increase in imported oil prices. However, oil remains under pressure this morning while gold prices are setting new records. Overseas markets are lower.
Premarket gainers: AMCP, CBBO, USNA, SHFL, WM, MEAD, TMY, URI, PFCB, BSC, LLNW, DMAN, SOLF, AKNS, BTFG, NUAN, ERIC, SPWR, DELL, ARO, CSIQ, DRYS, and CSUN.
Premarket losers: CADX, RFMD, JNPR, ACGY, QGEN, ANAD, AXP, CFC, MAIL, MT, INFY, BMJ, RFMD, OPXT, SYNA, JMBA, MA, RIMM, NETC, ETFC, AAUK, SNP, NVDA, LOGI, and CTSH.
We have more Fedspeak ahead with Mishkin (12:45PM) and Rosengren (1PM) but otherwise it should be fairly quiet with the focus on financials and the Fed. Next week is options expiration and earnings season will pick up speed. Have a great Friday.
