Market this Tue 11/6

[ron]

the outlook this morning is improved from yesterday as indicated by a positive opening earlier in the session. Despite the clear problems banks have had in managing their own credit risks, fears of a broader credit crunch are overblown.

[ron]

Reuters reports that the government’s Energy Information Administration (EIA) has raised its full-year 2008 U.S. crude price forecast to $79.92 a barrel from $73.50 a barrel. Additionally, the EIA stated that the OPEC production increase "may not be sufficient" to stop inventory declines. Crude oil topped $96.70 a barrel following the report, but has eased slightly to $96.58.

[ron]

the major indices were unable to maintain their opening gains as they slip into negative territory. Dow is currently trading +6.42 Points, Naz -5.45 rtq..the selling pressure has been broad-based so far.

[ron]

Early sector leadership is dominated by the commodity/energy area as the U.S. Dollar Index plunges to new lows: Gold GLD +1.8%, Materials +1.3%, Mining +2.9%, Oil Service +1.2%, Energy SPDR +1.2%.

[ron]

the selling pressure has faded, but the indices are only trading modestly above their intraday lows as buying interest remains limited. The financial sector played a significant role in the market downturn as it went from outperforming to underperforming. Dow and S&P 500 have recovered into the green, while the Nasdaq remains in the red.....Dow -11.2 Points, Naz -10.65 rtq....13,530.64 2,784.52 rspctvly.