You've got some real core pressure in the pipeline. By and large that certainly is going to fan a little inflation fear here.
You've got commodity prices and the cyclical stocks getting hit and all of that happens when people start to question whether the interest rates are biting.
We might see a little pause for assessment on stocks next week ahead of the jobs report. From now on, stocks will rise only if investors continue to believe, just like the Fed, that the economy is solid and may absorb higher rates.
Consumers are stepping aside, and manufacturing and other business sectors are stepping in. The U.S. business sector is looking very healthy.
It gives you the sense that maybe this earnings cycle is going to be like the rest, where it starts out like it's going to be terrible and it ends up looking good, ... That's been the pattern for eight quarters.
Thus far, the Fed seemingly has no bite. Normally, when the Fed has raised short-term rates, long-term yields have also risen. Not this time.
Even at the open, we knew it was just going to be Libby, and if nothing else, at least the uncertainty is gone.
That certainly is going to fan a little inflation fear here, and going forward it will at least keep people on the watch a little longer on the idea that the Fed is going to keep tightening.
I think that (the terror alert rumor) was most of this ... it's already rallying back.
Earnings have been growing faster than stock prices. We've continued to have a cheaper and cheaper market.