Intraday Market Update
The US indices were under pressure in the pre-market and early trading but have since pared most of the losses. The S&P 500 gapped lower by about -13 points, however, buyers stepped in and the index steadily rose to close the gap down by mid day. In early afternoon trading the S&P 500 was only off by -3 points (1,170) after being down as much as -15 points at the open (1,158). All of the indices found resistance near yesterday's closing prices.

The early pressure was probably attributed to the ongoing European debt crises officially shifting towards Portugal. Moody's put the nations AA2 sovereign rating on review, warning that it sees a very strong likelihood of a downgrade after their 3-month review. In Athens, riots and strikes have paralyzed the entire country. Three people died in a fire set by protesters and thousands more furious Greeks demonstrated against the government's austerity plan in exchange for the its 100 billion Euro bailout package. The Portuguese 5 year credit default swap hit a record 426 bps, up almost 100bps from late yesterday, while the Greece 5 year CDS tested 850 bps.

In US economic news, front month crude oil continues its slide from Monday's 52 week high near $87.00 per barrel after the Department of Energy data showed a larger than expected build in inventories. The contract is trading down -3% to about $80.00 per barrel, or -8% off of Monday's 52 week high.

ADP's private payroll count rose +32,000 vs. a revised +19,000 gain in March. The results may bode well for Friday's employment report. The ISM's non-manufacturing index, which makes up almost 90% of the US economy, held at an almost 4 year high of 55.4 for the second month in a row.

Notable financial sector analyst Meredith Whitney made several comments this morning, noting that weakness in the consumer credit market will weigh on large financial names. Whitney also sees the migration toward debit cards helping companies like Visa. She highlighted the fact that Q2 earnings for banks will be tough due to weak revenue growth.

In earnings news, energy names Chesapeake and Devon both reported strong quarterly results. Devon's sales were up +50% over 2009 levels. DVN is up +2% while CHK is down -1%. Media names Time Warner and News Corp both reported strong earnings. Time Warner reaffirmed its 2010 view, while News Corp raised its profit forecast. Smaller tech names Garmin and WebMD are down sharply after missing earnings targets. WBMD is down -3%, while GRMN is off by -11%. Internet phone provider Vonage crushed earnings sending the stock up +10%.

Commodities are under pressure with the exception of Gold which is up +0.50% to 1,175 per ounce. Front month crude is off -3% to about $80 per barrel. Natural gas is down -1.40%, Silver is off another -1.60% and copper is off by -0.70%.

International Markets:
Most major markets throughout the world were lower again on Tuesday. China gained +0.77% but Honk Kong lost -2.1% and Australia was off -1.33%.

All European markets were lower with the biggest losses seen in Spain (-2.27%) and France (-1.51%). Germany was off - 0.81% and shares in London were lower by -1.28%.

Core Sector List: Overall reading: 11 sectors declining, 5 sector advancing.
Weakest Sectors: Biotechnology, Oil, Home Construction
Strongest Sectors: Internet, Banks, Insurance

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