No Deal

Good morning. The market is set to provide a good test to the "bad news is already priced in theory" after plans for the bailout of the auto industry fell apart in the Senate amid a dispute over union wages. To add icing to the bears' breakfast cake this morning, Wall Street has another stupid scandal to focus on.

Premarket gainers: EXEL, OZN, SFI, FRX, MATK, ESL, HLX, EQT, VVUS, & DROOY.

Premarket losers: GM, F, LEA, AXL, ZOLT, JCI, WCN, COG, GGP, REXX, ADCT, CBI, MGA, DRYS, CSIQ, JASO, LYG, RBS, BCS, ALU, C, LVS, TRW, BAC, WAT, CIT, CLMS, MT, HBC, UBS, DHR, DB, OCNF, PRGN, ENER, FWLT, FSLR, NVDA, BUCY, MRVL, & UAUA.

Believe it or not, the good news that can be found is from the economy itself. Both the PPI and November retail sales reports were a bit better than anticipated. At 10:AM we have reports on Consumer Sentiment and Business Inventories. And, remember traders will be looking for an even bigger rate cute from the Fed next Tuesday and already there is chatter that the auto firms will get a bailout no matter what, perhaps even through the TARP.

At the moment, premarket futures are indicating a big nasty gap down and we don't have a lot of near-term support to work with other than way back down to last Friday's low around S&P 820. I suspect that with the Fed ahead next week, the market probably will still hold out hope that the news isn't as bad as it seems this morning and that it will be worked out soon. That said, let's let the market be the final judge. No matter what, today's action will tell us something about the conviction of those who are currently long the market and that alone will be helpful as we finish out this year.

Have a great Friday!