Stocks are headed for another game of slip and slide at the open this morning, as yesterday's fleshy selloff is likely to continue today.
At 9:25 a.m. EDT, the
S&P 500 futures
were down 6 points, 10 points below fair value and indicating some decent selling pressure this morning. The
futures had turned tail, falling off earlier highs, and were down 27 points, also indicating some selling pressure in the early going.
With a strong earnings season being ushered out the door, and this week's productivity and employment reports plus an upcoming
interest rate hike taking center stage, there is not enough good news out there to keep the bullish on top. And many market observers say the tech and biotech sectors, among others, over-extended themselves on the way up and may still have gains to give back.
index of leading economic indicators
new home sales
didn't help inflation jitters much, especially following high
Employment Cost Index
inflation indicator figures last Thursday. Tomorrow the Labor Department will release first quarter productivity figures, and Friday, unemployment and hourly wages reports will be reported.
Even so, few traders think we will break the "bottom" set on April 14 and expect stocks to continue oscillating between corrections. Jim Volk, co-director of institutional trading at
, said he doesn't see the market dipping below that day's intraday low of 3265."I don't expect that much damage to be done. A lot of damage has already been done to the darlings of the market," said Volk.
"But we'll certainly have more adjustments before a rally. Volume will probably stay light ahead of this week's inflation numbers. Tomorrow's numbers could be dangerous, and Friday," he said.
good news out this morning, but it is no surprise and is unlikely to make a big splash. The
London Stock Exchange
have officially announced plans to merge and will develop a joint venture with the
. This will make it easier for U.S. investors to buy individual London and Frankfurt stocks and could give a boost to European buying on the Nasdaq. For more on this
story, check out coverage from
Investors will likely look for some cues from today's
, an anecdotal report on economic conditions around the country to be released by the Federal Reserve at 2 p.m. EDT. The Beige Book will be used at the
Federal Open Market Committee's
May 16 meeting, where interest rate hikes will be determined, but it has far less market impact than, say, jobs and GDP numbers.
Meanwhile, telecommunications bellwether and market leader
is trying to stage a comeback in preopen trading this morning after it tumbled 14.4% to 41 15/16 yesterday. The AT&T selloff began after reporting slim revenue growth and cutting its profit and sales forecasts for the rest of the year. AT&T's slide helped drag down other stocks during yesterday's session.
Unfortunately, this season's spectacular earnings parade, which has provided the market with many an upside surprise, is coming to an end.
Today we'll hear from
The bond market was continuing downward, with the 10-year note down 7/32 to 101 5/32 and yielding 6.336%.
European markets were feeling pressure from renewed Nasdaq woes yesterday. They could not even be cheered by announcements of a merger between the Frankfurt and London bourses and their plans for a joint venture with the Nasdaq. Paris'
was off 55.02 to 6507.39 while Frankfurt's
was down 58.89 to 7497.03. Meanwhile, London was also sensitive to an interest rate decision there due Thursday and the
was down 121.2 to 6252.2.
The euro was trading back down at $0.8921.
Asian markets were back in the Nasdaq saddle and rode downward overnight on Wall Street's tech selloff while markets in Japan were closed for a series of national holidays.
index closed down 240.29 to 15,577.47. Singapore, Sri Lanka, Thailand and Taiwan indices were also down. South Korea's Seoul Composite, meanwhile, was up 0.17 to 752.76.
With Tokyo trading suspended until Monday, the dollar was trading at 109.22 yen.
For a look at stocks in the preopen news, see Stocks to Watch, published separately.