What Is Leading the Markets Lower?
FBN breaks down stocks dragging down today's markets.
- Duration 5:21
- Date Mar 6, 2012
FBN breaks down stocks dragging down today's markets.
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You -- -- residents of new.
I'll box this alert for your right now markets are plunging we've been following this breaking news for the last 45 minutes or so all three major indices down at least 1% back.
Now we have an escalation in selling as you can see we are off of session lows but just barely for the -- right now still -- one and a half percent NASDAQ S&P also.
Trading lower Nicole heavily used and -- -- once again army at the New York Stock Exchange in new edges.
Head of Chicago foreign exchange George -- sitting by the CB RB Nicole let's get to you first at the -- C.
And what is leading to slower what do you say.
Well without a doubt we've seen 29 of the thirty Dow components in the red tape shows you the accelerated selling that we're seeing it shows you the -- of the market for example.
So on that when you look at that down behind compared to the up by -- 354.
Million shares lower vs fifteen million higher self pity is broad based selling it is -- sector sector the retailers the drugs the banks.
You do have some winners on the S&P 500 on the Dow only -- Is just fractionally higher on on the SP 500 get some names.
Pulling out some when things like Supervalu and Amazon.
Big lots those are some names that would them up arrows but as the dollar is higher and that really is one of the things that we watch very closely here on Wall Street is that relationship to the dollar.
And the market overall some of the dollar higher it's pressuring both equities and commodities and today and if you search for those that one positive -- -- -- -- -- it is a name like rapid early is.
A classic defensive play.
Absolutely and that's what we're seeing we're seeing consumer names that.
You know you need to behind your household goods need to buy -- so we're seeing.
Those types of names doing well that's the kind of environment we're in today doesn't necessarily mean for the whole week you know this is an ever changing market -- also earnings are driving this market -- -- name like Dick's Sporting -- for example.
He now -- there.
Earnings and outlook and hit an all time high today -- people are still getting an parent by their football and soccer ball right it's it's a vacancies have the market on the -- Stay with me if you mentioned something very interesting and that is the currency situation the Euro dropped to a two and a half week low.
Against the dollar of this morning one Euro equaling a dollar 31 it's been not down -- concerns about whether Greece is gonna be able to meet that deadline to restructure.
The debt and that -- folks just two days away George Dowd let me ask this question to you compounds are -- -- about this.
Deadline of march 8 is the relieve fears that the private bond holders are gonna back away from the Greeks and not finish out the deal that as the problem.
Writes that this look at this point I don't think anyone knows no this sort of do this scenarios that they invoke the collective action clauses.
I think that's very bad for the Euro and I think it's still up in the or whether or not that happens you know you know -- -- -- -- -- We'll know I was gonna say I mean one of the issues here seems to be the fact that it's the two thirds.
Hair cut -- those bondholders are taking -- -- just fair enough if you're taking a two thirds of a haircut.
On your investment it's -- for -- to have some some late breaking issues but -- I'm hearing that the Greeks are fighting that us.
You look at the news out of Greece and it's certainly there's some of a little bit of unrest I guess you'd say so.
As far as the population increase goes right I think they're not happy with that -- the austerity I don't think they're happy with a lot of -- things are going on -- there -- kind of calls into question.
You know look if you're gonna have a common currency over there you really need to have the support of the people and -- if you have to go through pushed through some of these tough measures especially austerity kinda get on the same page fiscally he really had yet to be the support of the people saw I think.
That feeds through the Euro pressures while.
You know George Goldman Sachs put -- -- note this morning saying that basically they're sitting overall sitting on the sidelines because of what they're saying.
Even though the markets have been moving higher over the last few weeks because of so you know we're positive news -- may not go into recession both sexes how to make and a somewhat of a neutral call right now do you agree with that.
I do and you know I think people relevant bullish on the rally up so if you look at the move down in the Euro from I think it was 1494 -- the high last year we moved down to 12624.
You know you've had sort of three big rallies in that move down so back in July you were up about 700.
In October -- 11100 points this latest rally was about -- -- -- so the move up from 12624.
Up to kinda 13045.
Not unheard of I think the market got a little bit bullish on not I felt it was sort of counter trend rally most of the way out.
Got to market a little bit long in this latest move down I think is more reflective of you know just.
The sentiment coming out of Europe and and and -- -- lack of enthusiasm to get.
-- overweight the Euro at this point.
-- -- take that same kind of question over and Nicole is still sending by New York Stock Exchange because of the call.
You know whether it's the Dow and the S&P his point here is that a lot of these major markets are having a problem breaking through the top.
Technical bubbles and the Kennedy to -- for the rally to continue what are traders.
They're telling -- that well we've been doing that we've been breaking through technical levels and sometimes you take a breather about you don't wanna do it you break through resistance and then sort of trend in and a range.
What you don't want to do is break the support and that's what we're doing a little bit here today.
We talked about Europe and that is a very big factor.
That coupled with the fact that we stop the growth estimates for China reduced that was a big big hits this market no one wants to hear that China's not growing as much as they had anticipated.
And Friday the -- -- the important -- three points.
A lot of factors this week to Baghdad absolutely we're gonna be watching all of it thanks to both -- of course George -- -- it at a Chicago foreign exchange.
The -- penalties thanks guys were gonna keep on the market.