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The market continued to retreat following several disappointing earning reports from regional banks in the morning. This shouldn\'t be surprising at all given what most banks had experienced during the past few months. The cautious comments made by Bernanke and Paulson along with the record low homebuilder confidence indicated that there is still a long way to go before the housing market is bottomed. But this also gave a greater chance that the Fed may cut interest rates again in its Oct 31st Halloween meeting. Oil prices continued to move higher amid uncertainty in the Middle East while India ADRs moved sharply lower in US today after the Indian regulator proposed tightening rules for purchasing shares and bonds in local companies through offshore derivative instruments and this reminds investors of policy risks in emerging markets. Tomorrow will bring closely-watched CPI reports and this is arguably the last important piece of the economic news before the Fed meeting. After the closing bell, several tech bellwethers reported better-than-expected results and it will be interesting to see whether that will be enough to move the market higher from here.
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