Credit: Shutterstock photoStocks are down again today as profit-taking continues.
S&P 500 futures are off 0.2 percent, while European markets have fallen 0.5-1 percent. Asia was broadly lower overnight, led by a 2 percent drop in Hong Kong.
The S&P 500 has declined in six of the last seven sessions after briefly touching a 3-1/2 month high last week. The index is stalling after a big run in October as investors price in the likelihood of a Federal Reserve rate hike and weak global growth. European gross domestic product, for instance, rose just 0.3 percent in the third quarter, missing forecasts for a 0.4 percent increase.
Attention now turns to key U.S. numbers: retail sales at 8:30 a.m. ET and consumer sentiment at 10 a.m. ET.
At least three bearish forces are converging to hurt sentiment. First, energy and commodity stocks that rallied off lows in early October are rolling over as oil crumbles. A combination of interest-rate fears, weak global growth, and bloated inventories are causing the move. Secondly, retailers have fallen on weak earnings--a trend that may continue today as Nordstrom craters 21 percent on its results.
Weakness in health care, which led the market higher since 2012, is the third problem for the bulls. Financials, however, have benefited from higher rates, while a combination of good earnings and merger activity has supported e-commerce stocks.(See optionMONSTER's proprietary researchLAB market scanner for more.)
In addition in JWN, Cisco Systems fell 6 percent after providing weak guidance. Fossil plunged 20 percent on disappointing earnings, revenue, and outlook. J.C. Penney slid 5 percent despite beating estimates. Tyco is indicated down 3 percent in light trading after revenue its outlook missed expectations.
Commodities such as oil, gold, and copper are little-changed, trying to hold their ground following big drops. Most currencies are flat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
