GLOBAL MARKETS-, dollar gains

(Refiles to fix typo in headline)

* U.S. stocks slump as fear of more bank failures grows

* Dollar rises versus yen after strong U.S. factory data

* Oil slips below $69 a barrel on equities, strong dollar

U.S. stocks fell sharply on Tuesday as growing concerns about the U.S. banking system and over whether a recent rally in equity markets is warranted drove investors to the relative safety of bonds and the dollar.

Is the recession technically over? The strongest argument for recovery we’ve seen yet… Rob Parenteau shares his new macro economic forecast… “Told you so!” writes Byron King — “breaking news” he and The 5 scooped in March 2008… Plus, Chris Mayer’s latest contrarian play…

Gold climbed on Tuesday after data showed the U.S. manufacturing sector grew more than expected in August, lifting appetite for assets seen as higher risk, such as commodities, and boosting inflation fears.

On the earnings calendar, as you can see from the ones I have listed there is a significant amount of retailers reporting this week. That’s only a partial list, here’s the rest: ANN, BJ, APP, DDS, HOTT, DKS, ARO, GPS, PSUN, NWY, ROST, and TJX.

A little over a week ago the title to one of my articles was “Employment Numbers Are About To Get Historically Bad”. The article was looking ahead to last Friday’s employment report, which had it followed expectations would have shown another 600,000 jobs lost in April.

Employers cut 539,000 jobs in April, the lowest total in six months, but the Labor Department said the unemployment rate still soared to 8.9%, from 8.5% in March. While some analysts viewed the latest report as a sign of a nascent economic recovery, the unemployment numbers are almost certain to head higher before the recession is declared over.

This is the first major report coming out this week, and could have a real impact on the markets. Expectations are for a decline in sales since last month, albeit at a slower rate than previous months.

With the markets closed today in observation of President’s Day, we can take a little while to clear our heads. We will need it, since the next four days are chocked full of reports.

The stock market struggled to recover from a tumultuous 2008 yesterday (Tuesday) while digesting a trio of downbeat economic reports from the manufacturing, housing and service sectors.

G20 largely a non-event…  Pound moves up…  Brazil falls on sell off of emerging markets…  Japan enters recession… And Now… Today’s Pfennig!