U.S. stock futures fell Monday morning following last week's rally as investors worried stocks went up too high too fast, not fully justified by the economic outlook, which while showing stabilization, also show a recovery could be long and slow. As some look to see what banks pull up their sleeve in terms of capital raising plans and paying back government loans, Treasury yields climbed again, adding to traders' concerns this morning.Without much in the way of economic news today, investors will continue to focus on Treasury yields and mortgage rates. The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market.
Instead, rates for mortgages and U.S. Treasury debt are now marching higher as nervous bond investors worry about a resurgence of inflation.
Overseas, Asian stocks finished generally higher, but European stocks traded lower this morning. Oil prices declined too, with crude-oil futures falling below $68 a barrel, extending losses seen in the previous session as demand for energy remained weak.
While the auto sector remains in focus as always these days while Chrysler and GM try to emerge from Bankruptcy, the tech sector, specifically Apple (NASDAQ: AAPL) and Palm (NASDAQ: PALM) will be in focus today after Palm launched its new iPhone rival, the Pre, over the weekend and the Apple's World Wide Developer's Conference goes underway.
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