Another strange day, but it's becoming clearer that weakness in Europe and the Ukraine crisis is having a ripple effect.
In theory, it should have been an up day: The Jobs report was weaker than expected but not too weak and helped calm fears the Federal Reserve might raise rates sooner rather than later. The July ISM manufacturing report was quite strong.
We tried to rally right after both of those reports, but the markets went straight down late morning. Straight down into the European close, and only began to climb back after that.
A lot of people think Europe is a major problem. Companies like Adidas are now openly saying sanctions are starting to bite. If that starts to show up in earnings and profits to a great extent, it will certainly impact global growth.
The problems with Banco Espirito Santo in Portugal only add to the problems.
There are other issues, of course. You can argue no one was willing to ride to the rescue of the market on a Friday, and that may be part of it.
And then there is the endless waiting for the market correction. Plenty of people have had their finger on the trigger if they sense the possibility of the market heading in that direction. They see it everywhere: Small caps underperform! Multinationals weak today!
So far, they have been wrong. Volume is heavier today, but not as heavy as yesterday.
But there has been some damage done this week. The S&P 500 is down 2.7 percent, the worst week in two years. Dow Industrials: Also down 2.7 percent, worst week since January. Nasdaq down 2.1 percent, worst week since April.