Stagflation

Good morning. Much like yesterday, we're set for a weak open following the higher than expected CPI. Consumer prices rose +0.8% in November the fastest pace for more than two years.

To make matters worse, we have a report from ComScore that hints toward a disappointing online retail sales, Greenspan issuing a warning that the risk of a recession is increasing, and news that Citigroup (C) plans to bail out some SIVs. Like yesterday, most overseas markets are lower.

Premarket gainers: LUM, ESLR, RIGL, BMRN, BMTI, ENCY, EXEL, EXAS, MELI, CBAK, LEAP, PEIX, CISG, DSCM, BMTI, ONXX, MELI, FTEK, CSUN, CAVM, ADPI, CISG, Q, and HOKU.

Premarket losers: NOVL, NBIX, BDK, TIER, CHINA, BBL, LIFC, ACGY, GRMN, CPSL, DNDN, AMZN, ZQK, WCI, ACH, BHP, and XTEX.

Today will provide us with some sense on how motivated the sellers are amid signs of stagflation. For the time being, 1460 in the S&P looks like an important level to break if were are going to see any true downward momentum after the opening bell. Have a great day!