Paul Nolte Markets Quotations

What a difference a week makes, from improprieties in the Japanese markets to still-higher oil prices amid diplomatic rumblings in the Middle East to less than stellar earnings.

Already the futures markets are pricing in another rate hike and talk about a 5.0-plus fed funds rate is making the rounds. The currently inverted yield curve may also be a signal to the Fed that the economic growth of the past couple of years may be waning and any added tightening may be like kicking a good man while he is down.

If you look at how the markets have been trading the last few days, we're seeing a much broader decline. We're not seeing a leader that can carry the day. It's not limited to a few stocks anymore. Disappointment is broadening out during this earnings cycle.

The economic numbers are driving the bus. As long as the numbers remain kind of weak, if it doesn't look like we're getting much of a turnaround, then markets can continue to slide.

The foreign markets are on an absolute tear, so there's some thought that the liquidity might start coming back into the U.S. markets.