We should see Wall Street start off with a nice rally this morning, though I won't place a bet on where the day ends. Markets are terribly oversold and yesterday's action ended in a bullish reversal on high volume at support -- that's VERY bullish.


And yet we seem to get more terrible news all the time ...

BAD NEWS FOR THE CONSUMER ...

Auto sales plunge

June auto sales plunged, according to reports from the nation's major automakers, as Americans shunned pickups and SUVs in the face of record gas prices. General Motors reported that its U.S. sales fell 18% in June versus a year ago. Sales of GM's light trucks, which includes pickups, SUVs and so-called crossovers, tumbled 16%. GM's car sales dropped 21% in the month.

BAD NEWS ON INFLATION ...

Manufacturers struggle to overcome rising prices

NEW YORK - Each week, Ira Cooper opens a letter from another supplier with the same message as the last: We're raising our prices, effective immediately. We can't tell you how long the new prices will last.

"We used to get quotes good for six months," said Cooper, president of QED Inc., a lighting company based in Lexington, Ky. "Now you're lucky if you can get a quote good for 15 days."

Manufacturers of everything from wallpaper to cereal are feeling the same hit. The Institute for Supply Management said Tuesday that its index of prices manufacturers pay for raw materials hit 91.5 in June, up from 87 in May and the highest reading since 1979.

BAD NEWS ON WEATHER

African disturbance 92L could develop into tropical depression AND US Midwest floods show impact of global warming