The Market On Monday

Good morning. It is 69 degrees and overcast here in Upstate NY. We are hoping for more rain. Although we are not technically in a drought like many parts of the country, we are experiencing below normal rainfall. It's dry here.

At 8:15 a.m. futures are significantly lower, the dollar is mostly up against major world currencies, and the price of oil is down per barrel. The market is set to open much lower.

Investors are following the lead of the earlier opening global markets which have reacted negatively to Spain's financial crisis. Right now the focus is on Spain's economy and the possibility that Spain will require a complete bailout. So in a word, the eurozone crisis continues with virtually country after country in an economic free fall. In addition there is a fear that Greece may leave the euro behind. If you haven't been following Greece is now in a severe depression which Greek officials liken to the Great Depression of the 1930s.

All of this of course reflects back on the American corporate economy which sells goods and services to the eurozone. When that leg of the economy is short especially during an election year, look for a change in administrations. I am predicting Romney wins.

CNN: Spanish bailout fears to spark stock sell-off

...observers fear that...the country (Spain) may require a full sovereign bailout similar to those taken by Greece, Ireland and Portugal.


With no major data due (Monday) on the U.S. economy, investors will likely take a majority of their cues from Europe.


... just 45% of companies that have reported have topped revenue expectations, the lowest percentage since the first quarter of 2009...