Ahead of the open, (06-01)

 Into the trading day, we discussed a change of focus from Europe to U.S markets (saving grace) of domestic economic data to close off the week. Unfortunately, the bevy of data left little for the market to” hang its coat on”, as it all fell short of expectations. (ADP, challenger job cut surge, I.C#, Chi PMI, GDP, JOYG guidance on China demand).  A sell off through 1310 down to a day low of 1398 in the morning ensued.  An implausible recovery to above 1310 did occurr by close.  Did the market shrug off a bunch of negatives again?? (like last Thursday).  Believed it last week, but this is all a little too much unless market has truly started climb the wall of worry.  Maybe at lower prices it will, but this wall combined with Eurozone, China in the background is too steep at the moment.  All of the data showed Europe has started to affect the way U.S corporations are looking at the situation making for slowing growth. This has been discussed since CSCO echoed this sentiment a few weeks ago (CTSH, DELL, NTAP), ADP # voiced a slowdown in recent hiring.  Don’t forget this on top of recent sluggish flash PMI’s, which doesn’t bode well for overnight official readings around the globe and/or NFP#.

 

The only positive is a handful of retailers are showing little effect from all the depressed sentiment as SSS# came in strong in places. Some rotation into the more U.S only consumer discretionary stocks may still occur or else its boring telecom/Utilities for the those interested in equity assets.