I think there is risk in the market. If there is weakening in the economy, then an earnings recovery gets pushed out further into 2002.
For technology, it's still probably going to be a long period before the turnaround.
The market is responding very directly to interest rates as kind of a one-dimensional thing -- fearful of inflation and I think that either higher rates may catch this market in 1997, or the flip side, lower earnings.
The (stocks) with the highest (price-to-earnings) take that news the hardest.
I think the market needed to pause.
The stock market just cannot seem to go anywhere but down whenever the long bond gets above 7 percent, and that is basically what happened today.
It's going to be difficult for stocks in the short run. Now that interest rates have risen, there is going to be tremendous pressure on earnings. Without earnings, there is not going to be a catalyst for equity prices to go up.
The main catalyst that people are looking at is tomorrow's jobs report. While there's a mix of many things going on in the market, the key thing to an economic recovery is jobs and income. That's why tomorrow's number is critical.
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