Market this Wed 11/7

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Banks are under pressure this morning. According to WSJ - Morgan Stanley (MS) may take a $3 billion to $6 billion write down in the fourth quarter has helped reignite credit concerns.

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$ has weakened following reports that the Vice Chairman of China's National People's Congress, signaled China might adjust its foreign currency reserves. The decline in the dollar has contributed to the rally of commodities. Crude oil, up 1.0% to $97.77

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The stock market opened significantly lower. Dow Jones component General Motors (GM) is largely to blame for the selling pressure in the early-going. GM announced last night that it is taking a $39 billion non-cash charge for a valuation allowance against its deferred tax assets. Additionally, GM reported a much larger than expected operating loss (excluding the impact of the charge).

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- wholesale inventories for September came in at 0.8%, compared to the expected reading of 0.1%. The market's reaction was limited immediately following the release.

- the Energy Information Administration stated that for the week ended November 2, crude oil had a draw of 821,000 barrels. A draw of 1.5 million was expected. This is the fourth time in five weeks that crude has had a draw.

[ron]

stock market remains sharply lower note following negative news regarding Dow component General Motors and renewed credit market concerns. The major indices are currently trading slightly above their session lows, with substantial losses.....Dow -172 Points, naz -37.84 rtq 13,487.39 2,787.27 rsctvly.