The Big Issue For Stocks: Selloff In Materials

June payrolls came in in line with expectations, though there were revisions downward in prior months.

No surprise, the ECB raised rates a quarter point to 4.25 percent; Sweden also raised rates. The dollar rose. What's up in Japan? The Nikkei has fallen 11 days in a row, the longest losing streak since 1953.

In equities, the big issue is what is driving the selloff in materials; yesterday energy stocks were hit for the first time. Remember, energy and to a lesser extent materials were the last bulwarks of the market.

Tech stocks down in sympathy with Nvidia, the graphics chip maker, down 29 percent, as they cut their second quarter sales and profit outlook. Global weakness cited, but some traders are telling me the company mishandled the inventory.

Alcoa, which reported earnings on February 8th, was upgraded at Soleil, due to "the drop in the stock price of more than 9 points (or almost 23%) during the past five weeks, versus a drop of 9.3% in the S&P500 over the same time period;" they also noted that aluminum prices have been increasing recently.

Aetna downgraded to sell at Goldman, saying "the company cannot remain immune from the margin pressure impacting other carriers in the price-sensitive commercial risk business." Down 4 percent.

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