Markets mixed up again

Markets are mixed up again, better than declining! Dow is down 21, decliners ahead of advancers 3-2 & NAZ is about even. S&P slipped to 1245, not pretty. Oil is down 8 in 2 days to the 136s, but that isn't moving markets.

Financial problems are front & center

Fannie Mae (FNM) & Freddie Mac (FRE) are down today, their problems weigh heavily on the markets. They said they should be able to raise capital. That's bleeding thru to financials (banks, etc.) which are expected to have tough times raising capital that they will probably need. Chairman Bernanke gave a speech proposing new rules to help protect home buyers. Pending home sales fell 4.7% in May after a rise in the prior month. This was not a surprise, in line with the housing slump.

The summer season has started with July 4 & summer driving is less in response to higher priced gas. At the retail level the end of July is very important, the back to school season. This season is second in importance to the Christmas season & it looks like retailers must be clenching their teeth in preparation.