Stocks have been under pressure all session, and while the damage isn’t significant, it’s widespread with Energy the only winner on the day.  I think this would have been a lower session even without attacks on Saudi oil production because the biggest investors are still grappling with the next move from the Federal Reserve.

Interestingly, the mega oil producers are only up fractionally, but we are seeing monster squeezes across the board on names that shorts have feasted on like carcasses for years.

It remains to be seen how much further oil rallies, but there is a ton of upside potential, which should be achieve through demand not saber-rattling.

U.S. Economic Data

The Empire Fed Report came in below estimates with most aspects of the report sagging.

• General business -4.8
• New orders -3.2
• Shipments -3.5
• Expectations -12.0

I still think the Fed cuts 150 basis points this year. The odds actually edged higher with the economic data in China domestically, and news on crude oil and geopolitical risks.