Investors are taking a breather this morning as they await fresh economic data to propel the market one way or another. An unexpected business activity contraction in the EU helped erase modest gains in the futures. Currently the Dow futures are down 8 points to 12,937. Nasdaq 100 futures are off 2.50 points to 2,589. The S&P 500 futures are rounding out the modest losses, down 1.50 points to 1,358.50.
Overnight, Fitch downgraded Greece from C to CCC. This signaled that they expect an imminent default. Even with the debt swaps, the country will be in the technical definition of a restricted default. Once the swaps are complete, Fitch will re-rate the country based on its creditworthiness post-default.
The rally on Wall Street seems to be losing forward momentum after the Dow failed to crack 13k with any real conviction. Most analysts think market participants are fully invested now, and that the street needs a new economic catalyst to keep the rally sustained. [Read more...]