Worries over the economy and corporate earnings weigh… Focus on inauguration of President-elect Barack Obama… S&P 500 futures off 1.5 pct, Dow futures off 1.1 pct, Nasdaq futures off 1.2 pct

Retail sales disappoint….  Chuck’s views on the Lone Prop…  Waiting on the ECB…  Emerging market currencies sell off…  And Now… Today’s Pfennig!

Major domestic sales declines from Toyota Motor Corp. (ADR: TM) and Nissan Motor Corp. (ADR: NSANY) led Japan to post its worst overall annual vehicle sales in nearly three decades.

India started the year on an actionable note by sharply cutting interest rates and unveiling another stimulus package. The Reserve Bank of India lowered its repurchase rate by one percentage point to 5.5%, and lowered the reverse-repurchase rate by one percentage point to 4%.

Fed sets target for buying mortgage-backed securities… Initial jobless claims fall more than expected… S&P 500 futures up 0.4 pct, Dow futures up 0.2 pct, Nasdaq futures off 0.3 pct

The economic calendar is unusually light this week, with only the ISM Index reporting on Friday. It shouldn’t surprise anyone that the report will likely show a decline from the previous month. It has been an overriding theme this year that even though the bar gets set lower and lower as the months go by, the market still manages to underestimate the scope of the economic slowdown and reports continue to disappoint.

If there’s a proverb that captures the outlook for the U.S. economy in the New Year, it’s the one that says: “It’s always darkest before the dawn.”

Despite signs that several segments of credit continue to improve, namely in the mortgage-backed and investment grade corporate bond market, the rest of the complex remains hostage to nervous money and the accelerated flight to safety in December.

Now that the turkey-induced coma has worn off, it’s time for the market to get back to work. Heading into the final month of the year, we could hope for an early Christmas present and a strong rally, but that will be a tall order.

Oil down more than $2 after no cut from OPEC… OPEC to discuss 1 to 1.5 mbpd cut later in December… Saudi Arabia cites $75 a barrel as “fair price”