More Power To The Fed

Good morning. We're finally back from paradise. It was a great vacation and for those who are interested I'll have some travel photos and tidbits to share a little later this morning.

On this last day of the first quarter (and what a quarter it has been), the primary focus is on news that the Bush administration is proposing the biggest overhaul of financial regulation since the Great Depression that will give new powers to the Fed. Paulson will speak later today about these proposals and premarket futures are indicating a mixed to slightly higher open.

In other news, a reorganization at Citigroup (C), concerns about more writedowns from UBS, and weakness in Merck (MRK) and Schering-Plough (SGP) after the companies' join anti-cholesterol drug, Vytorin, failed to improve heart disease. Oil prices are also down after fears about a disruption in Iraqi exports eased after a pipeline damaged in a bombing last week has been repaired.

Premarket gainers: ANST, SVA, BSX, CALM, IACI, MXWL, CDS, SOL, GILT, RICK, EMKR, SNDK, CRXL, BNT, ACGY, GOLD, TNE, and RIMM.

Premarket losers: SGP, MRK, TMA, HRT, ETFC, SCUR, MICC, CMCSK, ALVR, PRGO, and YHOO.

Along with Paulson's speech, we have the March Chicago PMI at 9:45AM and Fed member Janet Yellen will speak about foreclosures at a reinvestment conference at noon. This week's economic calendar is very busy leading up to another jobs report on Friday.

My first two objectives in getting back to work this week is to 1) figure out why we didn't see a larger counter-trend rally after the Fed lowered interest rates during my vacation and 2) to ascertain how much downside risk there is still out there ahead of first quarter earnings season which will begin soon. I'll have a lot more on both this week as I roll up my sleeves and get back to work.

Let's make this a great week!