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Global Growth Fears Weigh on Stocks, Poor Market Internals Continue

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First, a soft ISM, now a soft ADP and soft ISM Services (with a decline in employment and new orders).

I've made no secret that I have not been pleased with the market internals for the past week. I get plenty of comments telling me to shut up, the S&P 500 is at an historic high, stop being such a crank.

Regardless. I'm not happy when I see cyclicals like Dow Transports and small caps outperform a small group of big-cap stocks.

Major Indices over the past two weeks:

I am particularly unhappy when I see these large-cap stocks led by classically defensive names.

S&P sectors over the past two weeks:

Sorry, call me a crank, but I am a growth guy...I do not want the market led for long periods of time by consumer stocks.

And financials? Fuhgeddaboutit! Again today, two to three percent declines in all the big names, which are quietly now on the verge of correction territory.

Big banks from recent highs:

Similar declines are playing out in big energy names, particularly in oil service, drilling, and exploration and production names. It's been a particularly brutal week for this group, with declines of nine percent in drillers like Nabors (NBR), a nearly six percent decline in Noble (NE), and 4.3 percent decline in equipment providers like Cameron International (CAM).

What does it all mean? It boils down to a simple phrase: global growth fears. Consider:

  • Copper 8-Month Low
  • Aluminum 8-Month Low
  • Iron Ore Stocks 8-Month Lows

All of this, of course, is closely related to fears of a China slowdown, and continued recession in Europe.


By CNBC's Bob Pisani

Symbol
Price
 
Change
%Change
S&P 500
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TRAN
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RUSS 2K
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NBR
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NE
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CAM
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JPM
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BAC
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GS
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C
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XLV
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SPDR CS SEL
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SPDR SP TEL
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SPDR IND SEL
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SPDR MAT SEL
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DJIA
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S&P 400
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MS
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COPPER
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  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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