Volatility continues to be the theme of the markets.  We seemed to be off to the races this morning, but all the major indices have come under pressure and are down as biotechnology and healthcare get hit once again.  The Dow has gone back and forth into the green and would be down save for a 10% pop in DuPont on the news that Ellen Kullman, longtime chief executive officer, will retire in October 16, 2015.

Energy is leading the way again as oil futures soar.  West Texas crude oil is up 4% today to around $48 a barrel, a one-month high, and Brent at $51.  Last week’s oil rig count showed a decline of 26 rigs, greater than expected. More rigs are being taken off line in the U.S., causing tighter oil supplies.  Oil forecasts released today call for global oil demand to grow in 2016.  The larger producers such as Saudi Arabia and Russia could begin to support the oil market and other OPEC and non-OPEC countries may work together to tighten supply.  Collusion anyone? Oil and material companies are among the top gainers in the S&P 500.  But even higher oil, is not enough to keep the markets out of the red.

Gold also continues its climb higher as the interest-rate hike prediction shift into 2016 by many market forecasters.  Gold prices are set for a third session of gains and momentum picked up after the U.S. August trade deficit report this morning.  The 16% increase in the deficit was mainly due to the strong dollar, which is actually lower on the day against most major currencies.

Today, the International Monetary (IMF) cut its global-growth forecast, as it has become more negative throughout the summer due to declining commodity prices which continue to weigh on world economies, specifically emerging markets. The IMF did maintain its forecast for China’s growth in the 6.5-7% range for this year, but slowing to 6-6.5% next year as the country moves more towards services and less from manufacturing.

On the merger front, Skyworks Solutions (SWKS) announced that it would buy PMC-Sierra (PMC) for $2 billion in cash.  While PMC shares jumped 33%, SWKS shares are down 4.3%.  All the FANG stocks (Facebook, Amazon, Netflix and Google), which were up earlier, have turned negative as profit taking kicks in along with the skeptics.

We do not see any reason to force the issue yet.  Let’s continue to see how this plays out today and overnight.