Midday Lunch

12:00 ET Dow 10342.87  -98.25,   Nasdaq 2184.97  -21.94,    

S&P 1099.21  -9.97

The dollars strength today is the main cause for the decline in the market.  For weeks now the market has been moving in an inverse relationship to the Dollar Index.  Today’s strength in the dollar, I believe is a result of traders locking in profits of foreign currencies before year end.

The financial sector is also not helping the market after Citigroup (C) 3.20 -0.21 stock offering was met with 

a cold shoulder by Wall Street and the Fed.

Gold and commodities are also under pressure today from the stronger dollar.  Gold prices are down 2.7% to $1105.40 per ounce. Commodities are down 1.2%, as measured by the CRB Commodity Index.

Leading Indicators Better than Expected

For the eighth consecutive month, the Conference Board's Leading Indicators Index posted positive growth.  The index jumped 0.9% in November after increasing only 0.3% in October. Economists expected the index to increase 0.7%.  The index has now overtaken its July 2007 peak and signals a strong recovery in 2010.

Initial Claims Rise

For the second consecutive week, new unemployment claims moved higher. The advance figure for initial claims for the week ending Dec. 12 increased 7,000 to 480,000.  Economists expected the figure to decline by 8,000 to 465,000.  The increase in initial claims shows that the labor sector is 

still strained.

Philly Fed Index Shows Expansion

The Philadelphia Fed Business Outlook rose to 20.4 in December from 16.7 in November. Economist had forecast the index would increase to 17.5.  The index has remained positive for five consecutive months and signals continued growth in the manufacturing sector.