1:30pm (EST)
The bears are gaining a little leverage today after one of the Fed’s big wigs said the U.S. faces a Japan-like battle with deflation. Tech is also breaking down with Cisco Systems (CSCO, $23.11, down $0.28) being halted briefly after triggering a circuit breaker. Disappointing earnings reports are also weighing on the market as well.

Trading in Cisco System shares were halted for five minutes after the stock moved more than 10%. There was a single trade at $26, which represented a more than 10% move. The halt started at around 10:40am and the trade will stand. Dare we say, “flash crash 2”?
Genzyme (GENZ, $69.83, up $1.83) was popping over $70 in after-hours last night and is up again today as Sanofi Aventis (SNY, $29.25, down $0.22) appears to be digging deeper in its coffers to come up with more cash to acquire the company. We mentioned this is one of the “crown jewels” of the space and there are some circles who say shares are worth $90. However, Sanofi Aventis is looking to come in at $72-$73 a share, or $20 billion, as a top bid. Get ready for another round of “Deal, or No Deal”.

As we head to press, the Dow is down 40 points to 10,457 while the S&P is off by 8 points and is at 1,098. The Nasdaq is getting pounded for a loss of 19 points and is at 2,245.
There is a lot to cover and we will be back in the morning with a full update, but it appears the bears are ready to make some noise. This could wake up some of our current put option trades.










