Oct 15 - The First Hour

My fears from this morning have materialized, as the Dow is trading down over 3.5% at the moment. Coca Cola and Wells have remained strong after their positive 3Q numbers announced prior to the open, but aside from that, we are seeing red across all sectors today as Retail numbers are indeed dragging the markets down. Crude has continued its fall, down 5% now, and another unfortunate number to focus on is the 9.5% surge in VIX since the open. This is a clear sign that investors are coming back down to earth, and realizing that there is much work ahead for the next President to dig us out of this recession.

The only bright spot at the moment is the Airline sector, which is clearly benefitting from yet another recessionary drop in crude prices. United Airlines (UAUA) is leading the way in that sector with gains of 5.5%. Delta (DAL) announces 3Q numbers before the close today, so keep your ears open for their results as a further surge for the sector could come about if results are positive.

EBAY also announces 3Q results before close today, and as it stands now, investors are quite bullish on estimates, as call buyers are outnumbering put buyers 1.7 to 1 right now. If results are in fact positive, this could erase some of the fear from this morning's Retail numbers, and allow the Dow to erase some of its early losses in afternoon trading.