Tuesday was a quiet session for the stock market on caution ahead of tomorrow's retail sales report. Trade data showed deepening weakness for exports reflecting recessionary effects in other nations. In a separate report, the Treasury posted its first deficit in the tax month of April since 1983. The S&P 500 slipped 0.1 percent to 908.
The biggest news came from oil which hit $60 before edging back below $59. Traders stress that gains in oil do not reflect current supply/demand fundamentals, reflecting instead strength in the stock market and weakness in the dollar which slipped 1/2 cent to $1.3637 against the euro. Weakness in the dollar is tied to increasing appetite for risk, the result of optimism in the U.S. and tangible signs of strength in China.