Market this Monday 12/03

[ron]

- economic front - the November ISM Index, a national survey of purchasing managers, came in at 50.8, basically unchanged from the precious month and in-line with expectations.

- Crude oil is down 0.9% to $87.88 ahead of OPEC's December 5 meeting. At its last meeting on September 11, OPEC agreed to increase output by 500,000 barrels a day.

[ron]

The AP reports that Citigroup cut its price target on shares of GE to $45 from $48, citing pressure in GE's consumer finance unit.

[ron]

In corporate news, France's Vivendi SA has agreed to acquire a controlling stake in Activision (ATVI 25.51, +3.34), and combine the company with its Vivendi Games unit, in a deal that will create the largest third-party video-game publisher and challenge market leader Electronic Arts (ERTS 55.05, -1.14). Activision shareholders will receive $27.50 per share, which is a 24% premium to Friday's closing price.

[ron]

technically the market action thus far today appears to be merely a continuation of the minor correction that began after the Friday's gap higher start. Short term rez is at 2672/2675 Naz 13420 and 13460 Dow with levels for the lagging S&P 500 at 1482 and 1485....Dow +3.17, Naz -1.00 rtq.

[lamborghini]

The stock market is consolidating today after rocketing higher last week as the major averages sit just below some key resistance levels. More specifically, the S&P has major overhead resistance at the 1490 level, also the index's 50-day EMA where it stalled during Friday's rally.

With today's session devoid of catalysts, the market has shown little direction as investors await a number of catalysts later in the week and into next week.

The Bank of England and European Central Bank both make interest rate decisions on Thursday, which of course precedes the upcoming FOMC meeting next Tuesday 12/11. Also, OPEC meets on Wednesday 12/5, while the potentially market-moving November Nonfarm Payrolls number will be released Friday 12/7 at 8:30 ET.

The major averages began the day flat-to-modestly lower. After consolidating at those levels for the first hour of trade, the market rallied very slightly as Treasury Secretary Paulson spoke at a housing conference. Paulson outlined the plan to help homeowners with subprime mortgages. He noted that the Treasury is working with the mortgage industry to give suitable borrowers sustainable home loans. Also, he said housing troubles will take "some penalty" on growth, but the economy is sound.

Looking ahead, San Francisco Fed President Yellen speaks on the U.S. outlook and monetary policy this afternoon at 15:30 ET