Intraday Market Update
US equities slid in the overnight futures market and printed new lows in early trading that have not been seen since June 10th, when the SPX had an intraday gain of more than +30 points. After being under significant pressure early equities have pared many of the losses. CDS spreads on European debt have widened, in some cases to new all time highs, as the sovereign debt crises continues to test investor sentiment. European markets were sharply lower on Thursday while Asian markets were mostly lower. All of the major US indices are down about -0.50% in early afternoon trading and remain below their intraday downtrend lines that started with Monday's highs. The Russell 2000 is the best performer.

Durable goods orders fell -1.1% (m/m) and April was revised higher by +0.1% to 3.0%. However, there was strength in the details. The headline number was influenced by a -6.9% decline in transportation equipment as non-defense aircraft and parts fell -29.6%. Stripping out transportation orders rose +0.9% which is third increase in the past four months. Orders for non-defense capital goods excluding aircraft, considered a good proxy for business spending, rose +2.1% in May, and are up +15.5% year over year.

Weekly jobless claims dropped -19,000 to 457,000 compared to last week's figure which was revised +4,000 higher to 476,000. Consensus estimates called for claims to decrease to 463,000. The 4 week moving average, which smoothes the trend in claims, declined by -1,500 to 462,750. Continuing claims fell by -45,000 to 4,548,000, which was basically in line with estimates of a drop to 4,550,000.

In equities, retail stocks are getting hit hard after some key earnings reports after the bell yesterday. Nike failed to impress investors with their report and indicated the strengthening US dollar would affect will affect their 2011 results. NKE is down -4%. Bed Bath & Beyond (BBBY) is also down -4% after their guidance wasn't good enough. Paychex (PAYX) was down nearly -4% in early trading but has since pared a good portion of the losses. PAYX guided their revenue from payroll services flat in 2011 which questions the strength of the US employment picture over the next 18 months.

Commodities/Currencies:

Core Sector List:
Overall reading: 12 sectors declining, 4 sectors advancing
Strongest Sectors: Home Construction, Gold Miners, Utilities
Weakest Sectors: Retail, Oil, Oil Services

S&P 500 - Daily and 30-minute Intraday Charts:

Dow Jones - Daily and 30-minute Intraday Charts:

NASDAQ - Daily and 30-minute Intraday Charts:

Russell 2000 - Daily and 30-minute Intraday Charts: