CNBC's Bob Pisani reports on what traders are telling him this morning.
We had good earnings from 3M and Ford and ExxonMobil--but that is not the focus of the market this morning.
There's a "let's take some off the table" attitude; even XOM is down after an incredible run.
Continued major worries over subprime/housing/homebuilders now overshadowing EPS numbers.
There's also the rumor mill going around with talk that a major bank or hedge fund is on the hook for some $92 billion in bridge loans. This is almost certainly true, given that it appears that some debt financing for these LBO deals is not going to be able to be floated. However, being on the hook only means they have to sit on the loan and hope they can float the debt at a later, calmer period.
The same credit concerns we are experiencing here is also happening in Europe as the cost of credit default insurance rises there as well.
Flight to quality in bonds in Europe and U.S.
The cost of credit default insurance in the US yesterday closed at its highest level in 2 yrs. Global bond markets continue to see a flight to safety.
The yen is at a 2 1/2 month high vs the $ as carry trades unwind.