The Nikkei average is down 5% since last Tuesday to include the 575 pt loss overnight and the DJIA is down 4% and is slated to open lower by almost 100 more pts. European markets are down 1.5 - 2.0% and perhaps are looking for some direction from the US markets which open in an hour and 15 minutes.
A few things to note... Dell took a big hit last week because they rely on corporate purchases for the bulk of their revenue. Hmmm, Generally speaking US companies are making money and LOTS of it but they aren't spending on information technology??? That's not a good sign my friends.
When corporations reduce or stop spending resources on their future it means that they are nervous about the future. No need to make capital expenditures if the business will not be there to benefit from it.
Another point which may be reflected in the US but is definately more worrysome in the asian markets is sub prime lending. Japan for years now has had very very low interest rates. Right now for their best customers I believe it intrest rates are at .25%. Yes, that decimal point is in the right place. Companies borrow at that rate and then use the procedes to fund sub prime borrowing. That's a hell of a payoff when you borrow at or near .25% and lend that at 10% or higher.
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