Dow Jones 30: Industrials Index

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Markets got the jitters after the Chinese central bank raised reserve requirements in an attempt to cool inflation — and the G-20 summit failed to produce concrete results. The Dow Global index ($DJWO) is retracing to test the new support level at 240. Failure would indicate a decline to the rising trendline near 225, while respect of support would signal a primary advance to 280*. Bearish divergence on Twiggs Money Flow (21-day) indicates mild (medium-term) selling pressure; reversal below zero would signal a correction.

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Monday, 15 November 2010...

Overnight U.S. Stock News
•Dec S&Ps this morning are up +3.70 points. The stock market last Friday opened lower on China rate hike fears, attempted a comeback after the Nov University of Michigan consumer confidence was released, and then drifted lower the rest of the day and settled with moderate losses: Dow -0.80%, S&P 500 -1.18%, Nasdaq Composite -1.46%. All of the indexes posted 1-week lows.
                 Bearish factors included (1) carry-over weakness from a fall in global equities on concern that China is poised to increase interest rates again after its Oct consumer prices accelerated to their fastest pace in 25 months, (2) the slump in raw material and energy producers as commodity prices tumbled on demand concerns, and (3) comments from Atlanta Fed President Lockhart who said a lack of clarity by government leaders in matters such as tax, regulatory and fiscal policies is prompting a "wait-and-see posture toward expansion-related spending and hiring," and leading to a "slower-than-normal" economic recovery.

               •Bullish factors included (1) the larger-than-expected increase in the Nov University of Michigan consumer confidence which climbed to its highest level in 5 months (+1.6 to 69.3 versus expectations of +1.3 to 69.0), and (2) an easing of European sovereign-debt concerns after Irish and Portuguese bonds rallied sharply on speculation that European leaders will bailout Europe's most indebted nations.

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Tuesday, November 16, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are down -7.40 points at a 1-1/2 week low on concern China will take steps to slow inflation and as European finance minsiters meet to discuss Ireland's debt woes. The stock market yesterday opened higher and traded higher into early afternoon on stronger-than-expected Oct retail sales and over $20 billion in M&A activity and then drifted lower into the close and settled mixed as Treasury yields climbed to multi-month highs: Dow +0.08%, S&P 500 -0.12%, Nasdaq Composite -0.17%.

                Bullish factors included (1) the larger-than-expected increase in Oct retail sales which posted its biggest gain in 7 months along with the upward revision to Sep (Oct +1.2% versus expectations of +0.7% and Sep revised up to +0.7% and +0.5% less autos from the previously reported +0.6% and +0.4% less autos), (2) the larger-than-expected increase in Sep business inventories along with the upward revision to Aug, which is GDP positive (Sep +0.9% versus expectat ions of +0.6% and Aug revised up to +0.9% from the previously reported +0.6%), (3) $20 billion in takeovers as the increase in M&A activity boosts confidence in the economy that has seen a total of $1.78 trillion in global takeovers this year, up +18% from the same time last year, and (4) carry-over support from a rally in European stocks as sovereign-debt risks eased after the cost of insuring against losses on European government bonds fell on speculation pressure from the ECB will pressure Ireland to accept an EU bailout that would calm markets.

•   Bearish factors included (1) the much weaker-than-expected Nov Empire manufacturing index which contracted at its slowest pace in 19 months (-26.8 to -11.1 versus expectations of -1.7 to 14.0), (2) comments from Richmond Fed President Lacker who said the Fed may need to tighten monetary policy, even with an elevated US unemployment rate, in order to avoid a surge in inflation, and (3) the jump in the yield on the 10-year T-note to a 3-1/4 month high of 2.93%.

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Wednesday, November 17, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are up +2.00 points. The stock market yesterday opened weaker and sold-off throughout the day on concerns China will raise interest rates and the European sovereign-debt crisis is worsening: Dow -1.59%, S&P 500 -1.62%, Nasdaq Composite -1.75%. The S&P 500 fell to a 2-1/2 week low, while the Dow and the Nasdaq both dropped to 3-week lows.

                Bearish factors included (1) carry-over weakness from a 4% plunge in China's Shanghai Stock Index after PBOC Governor Zhou Xiaochuan said China is under "pressure" from capital inflows and the China Securities Journal reported the country will introduce measures to control rising food prices, which fueled speculation China will raise interest rates and slow its economy which will lead to slower global economic growth, (2) concern the European sovereign-debt crisis may worsen as Ireland is in talks with European and IMF officials about a bailout, along with the action by Austria to threat en to withhold rescue funds from Greece unless its government sticks to its agreed to deficit-reduction plan, (3) the weaker-than-expected Oct industrial production and capacity utilization (industrial production unchanged m/m versus expectations of +0.3% m/m and capacity utilization unchanged at 74.8% versus expectations of +0.2 to 74.9%), and (4) a slump in energy and raw-materials producers as commodity prices plunged on concern a Chinese interest rate hike will reduce demand for commodities.

•   Bullish factors included (1) slack price pressures at the producer level after the weaker-than-expected Oct PPI (+0.4% m/m and +4.3% y/y versus expectations of +0.8% m/m and +4.6% y/y), (2) the weaker-than-expected Oct core PPI (-0.6% m/m and +1.5% y/y versus expectations of +0.1% m/m and +2.1% y/y) with the -0.6% m/m fall the biggest decline in 4 years, and (3) comments from New York Fed President Dudley who attempted to silence criticism about the Fed's asset purchases when he said Fed critics "don't understand clearly" that "we can have an enlarged balance sheet and not have a long-term inflation problem."

•   Human Genome Sciences (HGSI) rallied 2% in pre-market trading after the company won a US advisory panel's backing together with GlaxoSmithKline Plc to sell the first new lupus drug in more than 50 years.

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Thursday, November 18, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are up sharply by +13.20 points on the prospects of a EU-led bailout for Ireland. The stock market yesterday gyrated between small gains and losses as the Oct CPI signaled scant price pressures but the weaker-than-expected Oct housing starts and worries over European sovereign-debt issues limited gains: Dow -0.14%, S&P 500 +0.02%, Nasdaq Composite +0.25%.

                Bullish factors included (1) carry-over support from an advance in European equity markets after Irish government bonds rallied on speculation European leaders will come up with a solution to Ireland's sovereign-debt crisis, (2) the smaller-than-expected increase in Oct CPI (+0.2% m/m and +1.2% y/y versus expectations of +0.3% m/m and +1.3% y/y), and (3) the smaller-than-expected increase in Oct core CPI (unchanged m/m and +0.6% y/y versus expectations of +0.1% m/ and +0.7% y/y), with the +0.6% y/y increase the smallest gain since price records began in 1958.

•   Bearish factors included (1) carry-over weakness from a plunge in China's Shanghai Stock Index to a 1-month low on concern that an imminent interest rate hike by China will slow its economy and the global economy as well after the China Securities Journal reported that the PBOC may raise interest rates for a second time this year as soon as Nov 19, (2) weakness in homebuilders after Oct US housing starts fell to their lowest level in 1-1/2 years (-11.7% to 519,000 versus expectations of -2.0% to 598,000), and (3) a decline in solar companies after Credit Suisse cut its recommendation on the solar industry to "market weight" from "overweight," saying subsidy-driven demand can't keep up with surging supply.

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Friday, November 19, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are down -2.90 points. The stock market yesterday rallied right from the opening and continued higher the entire day on strong US economic data and on speculation Ireland will accept a bailout to rescue its indebted banks: Dow +1.57%, S&P 500 +1.54%, Nasdaq Composite +1.55%.

                Bullish factors included (1) carry-over support from a rally in European stock markets on speculation a resolution to Ireland's debt crisis is near after Irish Finance Minister Lenihan said the government is prepared to ask for a bank rescue package after talks conclude with EU and IMF officials, (2) the smaller-than-expected increase in weekly initial unemployment claims (+2,00 to 439,000 versus expectations of +6,000 to 441,000), (3) the larger-than-expected increase in the Nov Philadelphia Fed manufacturing index which matched its best level in 5-1/2 years (+21.5 to 22.5 versus expectations of +4.0 to 5.0), and (4) the fourth consecutive increase in the Oct lead ing indicators which rose an as expected +0.5% m/m.

•   Bearish factors included (1) data from Freddie Mac that stated mortgage rates for 30-year US loans climbed to a 3-month high of 4.39%, which may weaken US housing demand further, and (2) the action by the OECD to lower its growth forecast for the global economy next year to 4.2% from a May forecast of 4.5%, as it predicts a "soft spot" in 2011 as government stimulus is withdrawn and an investment recovery slows.

•   Dell (DELL) rallied 4.6% in pre-market trading afte the world's third-largest supplier of pesonal computers reported Q3 earnings late yesterday of 45 cents a share, well ahead of analysts' estimates of 32 cents.

•   Intuit (INTU) slipped 2.8% in pre-market trading after the company forecast fiscal Q2 profit excluding some items of 40 cents a share at most, below analysts' estimates of 45 cents.

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Monday, November 22, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are little changed, down -0.20 of a point. The stock market last Friday finished slightly higher as better-than-expected earnings results from Dell and a dividend increase at Nike overshadowed concern that China's action to raise banks' reserve ratio requirements could eventually slow global economic growth: Dow +0.20%, S&P 500 +0.25%, Nasdaq Composite +0.15%.

                Bullish factors included (1) strength in Dell which reported better-than-expected Q3 earnings along with a 4% rally in Nike after the world's largest athletic shoe maker raised its quarterly dividend to 31 cents a share from 27 cents, (2) optimism that a bailout of Ireland's banks will prevent the European sovereign-debt crisis from getting worse, and (3) comments from Fed Chairman Bernanke who defended the Fed's implementation of QE 2 by saying the use of securities purchases for monetary policy affects asset prices "quite significantly" and will aid in supporting the global economic recovery.

•   Bearish factors included (1) concern that the action by the PBOC to raise banks' reserve ratio requirements by 50 bp will slow the Chinese economy and the global economy as well, (2) comments from Fed Chairman Bernanke who said the US unemployment rate of 9.6% is "high and, given the slow pace of economic growth, likely to remain so for some time," and (3) comments from IMF Managing Director Dominique Strauss-Kahn who said "the European sovereign-debt crisis is not over."

•   SanDisk (SNDK) climbed 2.4% in pre-market trading after Robert Baird raised its recommendation on the world's biggest maker of flash-memory cards to "outperform" from neutral."

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Tuesday, 23 November 2010...

Overnight U.S. Stock News
•Dec S&Ps this morning are down -11.10 points. The stock market yesterday erased an overnight rally and moved lower on speculation a bailout of Ireland's banks will fail to stop the European sovereign-debt crisis from spreading, but the indexes settled mixed after a late-day rally in technology stocks sparked a short-covering rally into the close: Dow -0.22%, S&P 500 -0.16%, Nasdaq Composite +0.55%.

                Bearish factors included (1) carry-over weakness from a drop in European stocks on concern that Europe's debt crisis may worsen and spread after Moody's Investors Service said a "multi-notch" downgrade of Ireland's credit rating was most likely as an increase in the debt burden poses a "credit negative" for the country, and credit-default swaps on Portuguese government debt jumped 29.5 bp to a 1-week high, (2) the slump in financial companies after the FBI raided the offices of three hedge funds as part of insider-trading investigations, (3) the fall in bank stocks after Barron's reported that US banks could lose more than $100 billion if they are forced to buy back soured mortgage loans, along with the Financial Times report that said the top 35 US banks will be short of between $100 billion and $150 billion in capital requirements after Basel III rules are imposed, and (4) the action by the National Association for Business Economics (NABE) to cut its growth estimate for US employment next year to 136,000 jobs a month from an Oct estimate of 153,000, along their prediction that the US economy will fail to strengthen in 2011 as companies limit hiring and consumers curb spending.


•               Bullish factors included (1) overnight equity gains on optimism that the bailout of Ireland's banks would stop the European sovereign-debt crisis from spreading, and (2) a late-day rally in technology companies led by a surge in Hewlett-Packard, which gained ahead of the release of its earnings results after yesterday's market close.


•Hewlett-Packard (HPQ) rallied 1.9% in pre-market trading after the company late yesterday forecast Q1 profit of $1.28 to $1.30 a share on sales of $32.8 billion to $33 billion, higher than analysts' estimates for earnings of $1.22 a share on revenue of $32.8 billion.


•Schlumberger (SLB) slipped 1.3% in pre-market trading as the world's largest oilfield services provider fell after crude oil declined.

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Wednesday, November 24, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are up +2.30 points. The stock market yesterday opened weaker and continued lower as escalating tensions in Korea, concern the European sovereign-debt crisis is spreading and speculation that China's banks will stop lending all conspired to keep stock prices under pressure the entire day: Dow -1.27%, S&P 500 -1.43%, Nasdaq Composite -1.46%.

                Bearish factors included (1) carry-over weakness from a drop in European stocks on concern that Europe's debt crisis may be spreading after the Markit iTraxx SovX Western Europe Index of credit-default swaps linked to the debt of 15 European governments rose 3 bp to a record 180 bp, (2) heightened geo-political concerns after fighting broke out between North and South Korea, which undercuts global economic confidence, (3) concern that China's economy may begin to weaken after people with knowledge of the matter said China's biggest banks are close to reaching annual lending quotas and plan to stop i ssuing new loans this year, (4) the slump in homebuilders after the weaker-than-expected Oct US existing home sales (-2.2% to 4.43 million versus expectations of -1.1% to 4.48 million), (5) weakness in energy and raw-materials producers after a rally in the dollar prompted a broad decline in commodities, and (6) the Nov 2-3 FOMC meeting minutes in which the Fed said that it will probably be 2012 or 2013 before unemployment falls below 8%, along with the cut to their US growth projections for this year to 2.4 to 2.5%, below a Jun estimate of 3.0% to 3.5%, and the cut in next year's growth projection to 3.0% to 3.6%, down from a Jun estimate of 3.5% to 4.2%.

•   Bullish factors included (1) the larger-than-expected upward revision to Q3 US GDP (+2.5% annualized versus expectations of +2.4% annualized, and (2) the larger-than-expected expansion in the Nov Richmond Fed manufacturing index (+4 to 9 versus expectations of +1 to 6).

•   Oracle (ORCL) climbed 1.7% in European trading after a jury late yesterday said SAP AG must pay $1.3 billion to Oracle for copyright infringement.

•   Campbell Soup (CPB) may be active to the downside today after the world's largest soup maker was cut to "underperform" from "neutral" at Credit Suisse, and to "equal weight" at Barclays Plc.

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Friday, November 26, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are down -12.10 points on excalating tensions on the Korean peninsula and heightened European debt risks. The stock market Wednesday moved higher the entire day on an improvement in jobless claims and consumer confidence and settled sharply higher: Dow +1.37%, S&P 500 +1.49%, Nasdaq Composite +1.93%.

                Bullish factors included (1) carry-over support from a rally in European stocks after the Nov German IFO business confidence unexpectedly rose to its highest level since data began in 1991 and European debt fears eased after Ireland said it will cut spending by 20% and raise taxes over the next 4 years to curb its budget deficit, (2) the larger-than-expected decline in weekly initial unemployment claims which tumbled to a 2-1/4 year low (-34,000 to 407,000 versus expectations of -4,000 to 435,000), (3) the larger-than-expected increase in Nov US University of Michigan consumer confidence which climbed to a 5-month high (+2.3 to 71.6 versus expectations of +0.2 to 69.5), and (4) slack inflation pressures after the Oct PCE core deflator rose less-than-expected (unchanged m/m and +0.9% y/y versus expectations of +0.1% m/ and +1.0% y/y), with the +0.9% y/y increase the smallest gain since price records began in 1960.

•   Bearish factors included (1) the unexpected decline in Oct durable goods orders which posted its biggest drop in 1-3/4 years (-3.3% and -3.7% ex transportation versus expectations of +0.1% and +0.6% ex transportation), (2) the unexpected decline in Oct new home sales (-8.1% to 283,000 versus expectations of +1.6% to 312,000), (3) the unexpected -0.7% m/m decrease in the Sep FHFA house price index, weaker than expectations of no change, along with the -1.6% q/q decline in the Q3 FHFA purchase only house price index, which was weaker than expectations for a -1.1% q/q decline, and (4) concern over contagion in the European sovereign-debt crisis after credit-default swaps that insure Portuguese and Spain's government debt both surged to record highs.

•   Goldman Sachs (GS) is down 1.5%, JPMorgan Chase (JPM) is 1.3% lower and Bank of America (BAC) slipped 1.2% in European trading on carry-over negative sentiment from a decline in European bank stocks.

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Monday, November 29, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are trading up 2.60 points on continued optimism about stronger US economic growth and the overnight rally in Asian stocks, although this morning's lackluster reaction in Europe to Sunday's bailout measures is a negative factor. The stock market last Friday moved lower due to tensions on the Korean peninsula and heightened European debt risks and finished the holiday-shortened session with moderate losses: Dow -0.85%, S&P 500 -0.75%, Nasdaq Composite -0.34%.

                Bearish factors included (1) carry-over weakness from a plunge in European stocks on concern the European sovereign-debt crisis is worsening after credit-default swaps on the government debts of Ireland, Portugal and Spain all surged to record highs, (2) heightened tension in Korea which undercuts global economic confidence after North Korea said that planned naval exercises by South Korea and the US moved the Korean peninsula "closer to the brink of war," (3) a drop in b ank stocks after European bank stocks fell when Standard & Poor's Ratings Service cut Anglo Irish Bank's credit rating to below investment grade, which reinforces concern about financial stress within the Euro-Zone, and (4) weakness in raw material and energy producers after a rally in the dollar to a 2-month high prompted declines in most commodities.

•   Bullish factors included (1) increased M&A activity when Del Monte rallied after Vestal Capital Partners and Centerview Partners announced a possible takeover of the food company, and (2) strength in US automakers led by gains in Ford after the automaker said it opened 40 dealerships in China and has plans to add anther 26 by year-end as it aims for record sales in the world's largest auto market.

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Tuesday, November 30, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are down -4.20 points. The stock market yesterday closed lower, but off of its worst levels as concern the European debt crisis was spreading kept prices under pressure the entire day: Dow -0.36%, S&P 500 -0.14%, Nasdaq Composite -0.37%. The S&P 500 Index slid to a 1-1/2 week low and the Dow fell to a 1-1/4 month low.

                Bearish factors included (1) carry-over weakness from a plunge in European stocks on concern the European sovereign-debt crisis is worsening after credit-default swaps on the government debts of Portugal and Spain climbed to record highs, and (2) weakness in retail stocks despite data from the National Retail Federation that showed US shoppers over the Thanksgiving weekend increased purchases by +6.4% over the 2009 period.

•   Bullish factors included (1) a rally in energy producers after crude oil rose to a 2-week high, and (2) gains in bank stocks led by strength in Wells Fargo after RBC Capital Markets predicted that Wells Fargo may be among the first bank allowed by regulators to increase its dividend payouts next year.

•   Google (GOOG) slipped 1.0% in pre-market trading after the European Union opened an antitrust investigation against the company.

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Wednesday, December 1, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are up +13.30 points after Chinese manufacturing expanded and ECB President Trichet eased European debt concerns. The stock market yesterday oscillated in negative territory throughout the day on concern the European debt crisis will worsen: Dow -0.42%, S&P 500 -0.61%, Nasdaq Composite -1.07%.

                Bearish factors included (1) carry-over weakness from a sell-off in European stocks on concern over contagion of the European sovereign-debt crisis after credit-default swaps to insure Italian, Spanish and Portuguese government bonds all rose to record highs, (2) concern that China may raise interest rates further to stem inflation pressures which may lead to slower global economic growth after an economist at the Chinese Academy of Social Sciences said that China needs to raise interest rates by 200 bp as the recent increases in the reserve-requirement ratios of Chinese banks won't be enough to reign in excess liquidity in the system, (3) weakne ss in home builders after the weaker-than-expected Sep S&P/CaseShiller composite-20 home price index (-0.8% m/m and +0.6% y/y versus expectations of -0.4% m/m and +1.0% y/y), and (4) comments from Fed Chairman Bernanke who said the economy is "not growing fast enough to materially reduce the unemployment rate" and the rate is "about the same as it was when the recession officially ended."

•   Bullish factors included (1) the unexpected increase in the Nov Chicago purchasing mangers index which expanded at its fastest pace in 7 months (+1.9 to 62.5 versus expectations of -0.7 to 59.9), (2) the larger-than-expected increase in the Nov US consumer confidence which climbed to a 5-month high (+4.2 to 54.1 versus expectations of +2.8 to 53.0), and (3) mid-day short covering after President Obama said he asked Treasury Secretary Geithner to lead negotiations with congressional Republicans on extending tax cuts, which signals the President is serious about compromising on the tax cut issue since he appointed the Treasury Secretary to lead negotiations.


•   Motorola (MOT) increased 0.6% in pre-market trading after the company announced that its business will split in two on Jan 4 and it will issue new shares in the two companies to its existing shareholders.

•   Omnivision Technologies (OVTI) surged 8.3% in European trading after it forecast Q3 profit of as much as 63 cents a share, better than analysts' estimates of 40 cents.

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Thursday, December 2, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are up +4.00 points. The stock market yesterday rallied right from the opening after Chinese manufacturing strengthened and ECB President Trichet eased debt fears and the market extended gains throughout the day after strong US economic data was released: Dow +2.27%, S&P 500 +2.16%, Nasdaq Composite +2.05%. All of the indexes posted 2-week highs.

                Bullish factors included (1) carry-over support from a rally in European stocks after debt concerns eased when ECB President Trichet said investors are underestimating the determination of policy makers to halt the region's debt crisis, (2) the expansion in the Nov China PMI manufacturing index to its fastest level in 7 months, which benefits the sustainability of the global economic recovery, (3) the biggest monthly increase in Nov ADP employment in 3 years along with the upward revision to Oct (Nov +93,000 versus expectations of +70,000 and Oct revised up to +82,000 from the earlier reporte d +43,000), (4) the smaller-than-expected decline in the Nov ISM manufacturing index (-0.3 to 56.6 versus expectations of -0.4 to 56.5), (5) the unexpected increase in Oct construction spending along with the upward revision to Sep (Oct +0.7% m/m versus expectations of -0.3% and Sep revised up to +0.7% from the previously reported +0.5% m/m), and (6) the Fed's Beige Book which said the US economy gained strength in 10 of 12 regions as manufacturing "continued to expand in most districts" and hiring and retail spending "showed improvement" in most districts.

•   Bearish factors included (1) concern the European sovereign-debt crisis may still widen after Standard & Poor's Ratings Service late Tuesday said that it may cut Portugal's credit ratings on concern the government has made little progress at boosting economic growth to offset the fiscal drag from scheduled 2011 budget cuts, (2) the warning from Fed Vice Chairman Yellen who said "if current policy settings are maintained, the budget will be on an unsustainable path," and "a failure to address these challenges would expose the US to serious economic costs and risks," and (3) the jump in the yield on the 10-year T-note to a 4-month high of 2.979%.


•   PepsiCo (PEP) fell 1% in European trading after the world's largest snack-food maker said it will acquire 66% of Wimm-Bill-Dann for $3.8 billion to become the biggest food-and-beverage company in Russia.

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Friday, December 3, 2010...

Overnight U.S. Stock News

•   Dec S&Ps this morning are down -0.20 of a point. The stock market yesterday rallied after US home sales and retail purchases topped estimates and signaled strength in the economy: Dow +0.95%, S&P 500 +1.28%, Nasdaq Composite +1.17%. All of the indexes posted 3-week highs.

                Bullish factors included (1) a rally in homebuilders after the unexpected increase in Oct pending home sales which had its biggest gain since data began in 2001 (+10.4% versus expectations of -0.9%), (2) strength in financial stocks after Goldman Sachs upgraded the sector to "overweight," its first positive recommendation since 2008, and said the economic outlook is "supportive" for the sector, and (3) data from Retail Metrics that showed Nov US comparable store sales at US retailers rose +5.3%, more than expectations of +3.5%.

•   Bearish factors included (1) the larger-than-expected increase in weekly initial unemployment claims (+26,000 to 436,000 versus expectations of +17,000 to 424,000), (2) concern that the European sovereign-debt crisis may linger after the ECB refrained from announcing additional measures to combat the crisis, and (3) the surge in the 10-year T-note yield to a 4-month high of 3.02%.


•   Kroger (KR) and Safeway (SWY) may be active to the downside today after Barclays cut its recommendation on Kroger to "equal weight" from "overweight" and downgraded Safeway to "underweight" from "equal weight."