Stocks Weaker as Wall of Worry Grows

Stocks are sharply lower for the second straight session as investors take risk off on a myriad of concerns, including: a potential Islamic extremist takeover in Iraq, weak retail sales, and growing fears the Fed could wind-down QE sooner-than-expected.

At 2:30PM, the Dow is down 108, the Nasdaq is down 37 and the S&P 500 is down 14.

Crude oil jumped above $106 per barrel for the first time since September 2013 after Islamist extremist group, Islamic State of Iraq and the Levant (ISIL), captured major Sunni-cities Mosul and Tikrit. The group is now marching toward Baghdad.

To the surprise of many, May retail sales numbers were a major letdown. Retail sales grew at just 0.3% versus expected growth of 0.6%. Excluding autos, retails sales grew just 0.1% versus and expected 0.4% rise.

Next week's Fed decision is also weighing on investor's minds. There is recent market talk the FOMC may accelerate the monthly pace of QE reductions to $15 billion from the current $10 billion pace. If this were the case, QE would end at the end of August rather than the end of October as markets currently expect. Once QE is finished, the Fed would be on the path to raise interest rates.

In addition to the fears above, Russia/Ukraine remains a big unknown.

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