(as of 7:05 AM PST)
Markets search for direction this morning after last week's surprise surge. Most are quiet with little data out to provide traders a call to action. Europe indexes are mixed with their focus on dealing with the existing terrorist threat, while Asia shows little action one way or another. The existing home sales report was down and slightly below expectations, but still an improvement from last year with underlying data showing strength. A report that S&P 500 profits were down 25 billion dollars this last quarter, led mostly by energy, is sure to keep a lid on any bullish moves. With a dearth of data expect the focus to be on December's upcoming rate hike decision. History shows that investors hate this kind of uncertainty and with stocks selling at a lofty forward price to earnings ratio, it would be no surprise to see a pullback in this holiday shortened week. Oil is down modestly, as abundant supplies push the price of a barrel towards $40. That's great for gas prices going forward, but a real negative for energy companies. Gold continues to struggle, down another one half percent on the day.
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