· Market Update – equities slump further, extending their losing streak to 4 consecutive sessions. A litany of negatives are weighing on the group: 1) renewed worries on the fin regulatory front (the FNM/FRE item of last night, discussed on Politico, weighed hard on the group, although this was just stripped out of the bill, which helped the fins to rally); 2) consumer discretionary seeing accumulation of neg. data points (BBBY, NKE, DRI all for sale after earnings, following on BBY from last week); 3) renewed worries out of Europe as Greek spreads surge wider – they were ~821bp last Fri and now ~985 (nearing all time wides); 4) some neg. data points out of tech land (cautious sell-side comments on the drives and DELL saying it saw some moderation in its Europe + consumer businesses of late). Away from stocks, the fear trade is increasingly being put on as gold jumps (despite non-existent inflation pressures, something noted by the Fed) and TSYs rise (2yr yields closing in on all time lows set back in Dec ’08).
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