Peter Cardillo Taking Quotations

We're seeing some profit taking but a strong build-up in inventories could send the price of oil under $60 and that could reverse market psychology.

We have here a cautious market, and it will continue to be cautious until we get through some major data and Greenspan's testimony on Capitol Hill. Also, investors were taking profits from last week's rally.

Obviously they (investors) are going to focus on the Fed but a rate cut is priced in. The focus will be on the economy and signs that the first batch of interest rates are finally taking hold.

I believe the worst of the decline in the 'old economy' stocks is over, ... and I think what we're seeing here is a consolidation phase, even though this consolidation phase is probably taking place at the lower end of the trading range. I don't believe that yesterday's decline in Nasdaq is the beginning of any major correction just yet. Now, that is not to say that we're not going to have a correction. Indeed, we are. But I just believe that there is sufficient money out there and sufficient demand for these tech stocks yet, and that is not going to disappear so quickly. What we saw yesterday was little profit-taking after a spectacular week.

We have the weapons inspectors returning, mixed corporate reports and no new economic news to focus on, so stocks are taking a little pause, ... The broader market is mixed to lower but is showing no great declines, while the techs continue to perform a little better.

The good earnings news is really taking hold. Some of the warnings from last week are less of a factor in the marketplace now.