Weakness today on:
2) Weaker-than-expected jobless claims, durable goods.
Rallying: gold, oil, bonds.
Weak: emerging markets, financials, airlines.
Airlines, down 2% yesterday, another 2% today, on concerns that modest airline profits in 2007 will evaporate in 2008 on a slower economy. American Airlines parent AMR, Northwest, Continental at new lows.
Some retailers like Macys and Kohls also at new lows, but the season was not the disaster some depicted. Roth Capital lowered its 2007 Holiday sales estimate, but it is still up 2.5% versus their previous estimate of up 3% over last year.
Positive retail news: Inventories have been tightly managed. Also, note that gift card giving is up considerably this year (42% year over year, according to the National Retail Federation), and this may also help in the coming couple weeks.
Indian and emerging market stocks a bit weaker on the terrible news of the Benazir Bhutto assassination.
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