The Germans threw a monkey wrench into the EU "fix" once again asserting that Sunday's deadline for a credible plan wasn't certain. This led to a sharp decline in stock prices since the "idea" that a plan was going to be implemented was priced-in with last week's short squeeze. Friday after the close of trading it was announced that the U.S., in addition to other members, were not willing to use the IMF for any EU rescue with $350 billion. That was a blow to EU forces hoping someone else would bailout them out of their troubles. Add to this the often reliable short-term overbought McClellan Oscillator and it was likely we might sell-off anyway.
The poor Empire State Manufacturing Survey (-8.48 vs consensus -3.25 and prior -8.82) didn't help matters for bulls Monday. Meanwhile Citigroup (C) beat expectations due to an accounting adjustment and Wells Fargo (WFC) missed expectations causing financials to fall into the red. Much watched Goldman Sachs (GS) and Bank of America (BAC) will report earnings Tuesday. On a related matter, and without much surprise, HFTs (High Frequency Traders) are now the dominant force in program trading volume on the NYSE as outlined in this report.
IBM reported earnings after the bell of $3.19 ($3.28 after adjustments) on revenues of $26.16 billion versus $26.26 billion expected. The stock continued to sell-off slightly in extended trading. Apple (AAPL) will report earnings Tuesday ($7.30 expected) as will Intel (INTC expected $.61) among many others.Gold prices finished down roughly $10, the dollar was higher versus the euro on the German news. This in turn led to a decline in commodity prices overall while bonds were sharply higher on the stock sell-off. Forthcoming may not be able to overwhelm the ongoing EU drama and disappointments. Low levels of confidence and high levels of uncertainty aren't allies for stock bulls. As stated, stocks were lower taking the major averages back into the red again for 2011. Volume was quite light given the selling compared with previous periods while breadth was negative. You can follow our pithy comments on twitter and join the conversation with me on facebook. Continue to U.S. Sector, Stocks & Bond ETFs
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV