Market Talk

In what’s become a somewhat rare event lately, US stocks sold off. That’s right, nothing dramatic, mind you, but the weakness lasted wire to wire, without any convincing effort by bulls to turn this one positive. Can’t win them all.

To add a little perspective on this modest drop, both the DJIA and S&P 500 fell about one-third of a percent, and Nasdaq fell nearly 0.5%. Hardly much of a pullback, but it was the biggest point and percentage drop in twelve sessions, since the market got jittery on January 28 watching wall-to-wall coverage of protests in Egypt.

Economic data not especially inspiring, with the most notable aspects being inflation-related — hotter-than-expected import prices, and frisky gains in prices paid in NY Fed’s Empire State survey. Exxon and Chevron give back most of yesterday’s gains, and with Boeing lead the Dow’s dollar decliners. DJIA slips 41.55 points to 12226.64, and Nasdaq Comp falls 12.83 to 2804.35. S&P 500 ends 4.31 lower at 1328.01.

Housing starts, PPI, industrial production & capacity utilization and FOMC minutes all due tomorrow. Continue reading…

Missed this item earlier, which crossed the tape while I was sleeping at 3:43 a.m. EST today, from Andrea Hotter, DJ Newswires assistant managing editor in London:

The current overall commodity markets find themselves near the most historically overvalued levels, on a short-term basis, in over 200 years, says Shawn Hackett of commodity brokerage Hackett Financial Advisors.

Adds that if history does repeat itself, “then a major correction in commodities can begin at any moment without warning.” Sees “extreme caution” as being necessary with only natural gas, coffee, milk and rice being attractive, although “all would suffer to some degree if a major intermediate term correction were to unfold in overall commodities.” LME copper, tin are at record highs above $10,000 a metric ton and $31,300/ton respectively, Liffe May sugar recently hit 30-year highs around $750/ton.

But don’t sweat it folks, it’s all supply and demand. Has nothing to do with oceans of hot money looking for a home.

Here’s a press release from JPMorgan so soaked in sanctimony, we feel damp just reading it. Here’s the headline: JPMorgan Chase Announces New Programs for Military and Veterans.

Bottomline, JPM made some foreclosure “mistakes” with military customers for which it “deeply apologizes” and pledges to make amends. How heroic.

It’s a great thing to be helping veterans and military families. They deserve it all the time, and PR stunts “initiatives” like this shouldn’t happen just because a big bank gets called out for bum foreclosures.

Another directionless premarket setup for stocks, as investors prepare to digest a burst of economic data this morning.

January retail sales, import prices and NY Fed’s February Empire State manufacturing survey all due at 8:30am ET; December business inventories and homebuilders’ Feb sentiment index set for 10:00am. Cleveland Fed’s Pianalto also scheduled to speak about economic conditions around 10:00am.

Prediction: Any better-than-expected data helps stock rally, but anything that stinks gets dismissed as skewed by bad weather.

Dell reports results after the close. FedEx profit warning late yesterday gets shrugged off, as it seems everyone saw this one coming, what with all the bad weather and soaring fuel costs. FDX actually pointed higher premarket, the spin no doubt suggesting “it could’ve been worse.” Well, the weather may get better, but don’t hold your breath on those fuel prices, citizens.

Stocks in Europe mostly higher, euro is firmer, USD index off 0.3%.

S&P futures flat; 10-yr note lower, yield at 3.65%.