GOIH Capital Markets: Market Overview

The market traded down on Monday due to the housing data reported. The data indicated that existing housing sales were flat and declined over the same period last year.

We see continued weaken in the market today resulting from the housing date. As we have reported here the consumer's weakness is a one to one correlation with the weakness in housing.



The market is in a tug of war with the trend of the consumer data and the credit crisis created by the implosion of subprime mortgage instruments.

Stocks finished lower on Monday, as evidence of continued weakness in housing and mortgages put a damper on markets.




The Dow industrials fell 56.74 points to 13322.13. The Standard & Poor's 500-stock index shed 12.58 to 1466.79, and the Nasdaq Composite Index declined 15.44 to 2561.25.

Merrill Lynch cut the ratings on Lehman Brothers, Bear Stearns and Citigroup, all to "neutral" from "buy," citing the impact of debt market exposure.