The broader market is getting pummeled this morning on renewed fears over the EU sovereign debt crisis. This time the fears have taken on a political bent as the Socialist candidate in France has force Sarkozy into a runoff slated for May 6. That is the same day Greeks go to the polls. This could blow up the bailout structure in Europe and create further turmoil for core EU countries.
Domestically, investors are reacting to Kellogg’s slashing of its 2012 forecast. Fears of a faltering recovery or a renewed downturn are being played out in the volatility index (VIX), which measures fear in the market. Vix has surged over 15% in morning trading to over 20.
Currently the Dow is off 152, the Nasdaq 51 and the S&P 18. [Read more...]