The way the economy tends to slow down is in things that either we as individuals or businesses can push off into the future. Auto sales are slowing. That is [due to] individuals this time. We can wait to buy a new car. These announcements from the technology sector appear to imply that a lot of companies are saying we can wait a little while with our business spending.

The market's grappling with earnings slowing down.

Realistically, if it eliminates a degree of risk about the future, that's good news.

The groups that will do well in this kind of environment are groups that were ignored for some time; food, beverages, household products, necessities.

The market is adjusting to a trend that the market hasn't lived with in some time. Inflation is going up and interest rate are going up.

The key is if the economic data stays soft, maybe we don't have to worry much about interest rates anymore. Then we need to worry about earnings. What gave us a really strong move in stock prices from late May until about two weeks ago was this heightened optimism that maybe interest rates are at that high. That gave you a relief rally. Now reality is setting in -- if we've seen the worst on interest rates then we've seen the best on earnings.