Morning News

Good morning. Premarket futures have been mixed as Americans flock to discount retailers like Wal-Mart (WMT). For the most part, retail sales were disappointing, but pretty much inline with what was anticipated.

In other news, Lehman Brothers (LEH) liquidated three investment funds with a value of $1 billion, initial jobless claims fell, and we had a wider than expected trade deficit. Overseas markets have been weak after the Bank of England lowered its interest rate by only 25 basis points to 5.00% and the European Central Bank left its rate unchanged at 4.00%.

Premarket gainers: MLNM, FCSX, APOG, YHOO, LOOK, CBK, GPRE, FRPT, NKTR, CALM, MW, HOTT, FRO, GERN, PIR, CACH, LDK, AMGN, and CPST.

Premarket losers: VMED, BBBY, AEO, WDFC, SMCI, FMCN, RAD, PCLN, RAD, BCS, LOGI, and KSS.

The market really wants good news, but it simply isn't getting it. At least not yet. Moreover, those who bought after the first the month are most likely under water right now, unless of course their portfolios are filled with energy stocks (USO), metals & mining (XME), basic materials (IYM), commodities (DBC) which are all up big since April 1st. We also have relative outperformace of Brazil (EWZ) and Russia (RSX).

Technically we need to see the market stabilize around here and not violate the 1340 to 1350 area in the S&P on a closing basis. Like usual, keep the financials and the commodities on the radar. Have a terrific Thursday!