Morning Market Comment

Aside from the nightmare of an FDA which places whatever politics and special interests of the chemo industry before the needs of suffering prostate cancer patients, last night's flat guidance from Cisco (CSCO), which is down 5%, is weighing on broader market sentiment, especially in the land of techs. Today is also Fed meeting day, and even if the Fed gives everyone what they're expecting by way of no rate change and a statement that's like the last statement - that's a bit of a problem. Why? Because it brings the dirty laundry of a Fed stuck between inflation fighting and keeping economic risks from becoming wolves at their door to the forefront for at least a day. That kind of delimma and stark reminder of it that will come our way at 2:15 pm eastern time is hardly the stuff the bulls need or want to hear to keep this market levitating.

But not to sound like a two handed blogger, a variety of markets in Asia finished at record highs again and Europe was mostly higher as deal speculation (eg. BHP for RIO?) helped to boost sentiment. Ultimately, global liquidity continues to boom. For that matter, corporate liquidity with on going deals and buybacks will remain a huge support to the market even as earnings season wanes. So whatever negativity comes by way of the Fed probably won't last long and it will be back at the races so long as global flows can continue to prop what are getting to be very over extended markets, especially in places like China.

One quick note WRT to DNDN: names like BIOM, MEDX, CEGE, FVRL, GERN, NUVO, AGEN are levered to the FDA decision. Keep an eye on them.

As noted in passing yesterday, there was something up with Alltel (AT). The Wall Street Journal has picked up on the story: Alltel is drawing interest from at least three private-equity buyout groups. The wireless firm has a market cap of $22.7 billion.

On the housing front there are a couple of good Journal stories....

• Housing prices are rising in some areas of the U.S. that missed out on the boom. Home supplies in major metro areas continue to grow.
• Lennar Tries Web Auction to Battle Slump

Meantime, Toll Brothers Drops Guidance.

Crude has been drifting a bit lower ahead of the weekly inventory data at 10:30. Gold has caught a modest bid once again.