Cuttone and Co. Inc.

Marie Prevost was a silent film star of the 1920s, appearing in over 120 films during a 21 year career, yet she is known today primarily for being the subject of a Nick Lowe pop song (the misspelled "Marie Provost"). Working with talented directors such as Cecil B. DeMille, Frank Capra and Mervyn LeRoy among others, Marie was at the height of popularity in 1926 when tragedy suddenly befell her. With her marriage to leading man Kenneth Harlan in the process of crumbling, Marie was devastated by the sudden death of her mother in a car accident. Her mother's death plunged her into depression, and Marie sought refuge in the bottle. A long, slow spiral followed, marked by repeated weight gains and crash diets, and Marie was relegated to bit parts, a humiliating comedown for the one-time star. Overwhelmed by the effects of alcoholism and malnutrition, the former leading lady collapsed and died of heart failure, alone in her dingy Los Angeles apartment on this date in 1937. Many have experienced the waning of popularity before and since, but few have fallen so far or have died so gruesomely. After two days of incessant barking from within Marie's apartment, worried neighbors called the police, who after breaking in, found Marie's body, riddled with bite marks from her pet dachshund. Police concluded that the poor, frightened dog had been merely trying to wake its mistress, but Mr. Lowe immortalized Marie with the memorable refrain that sealed her place in pop culture history:

                   "She was a winner

             That became a doggie's dinner.

           She never meant that much to me.

                     Oh, poor Marie"

Traders can be forgiven for asking themselves if the market has turned into a dog after the Dow had its biggest plunge of the year during yesterday's trading session. The dramatic market decline was especially jarring since it crossed up many investors who had expected the market to rally in the wake of the Republican's game-changing victory in the Massachusetts senate race. Traders cited China's apparent notice to banks to reduce lending activities and the failure of our own banks to exceed earnings expectations as prime motivators for the sell-off, but other factors may be at work. Investors love certainty and the Democrats' loss of a filibuster-proof super majority has rendered assumptions about healthcare, financial reform and economic policy moot. It will be some time before the full impact of the election result is understood, but for now it seems clear that the dynamic in Washington has changed and that is likely to inject volatility into the market.

President Obama was a big winner one short year ago and while he has been ubiquitous on the small screen in recent years, his star power has undeniably diminished and it remains to be seen if he can maintain a firm grip on his own fractious party. I'm not suggesting that the President will soon be dog meat, but his aura of invulnerability has been broken and that will have a profound effect on the terms of the national debate. The Democrats have been positioning themselves for a populist-inspired run against the monied interests of Wall Street, yet the loss of "Ted Kennedy's" seat is sure to send many elected officials scurrying back to the centrist positions that most Americans identify as their own. Financial stocks may benefit from a diminished likelihood of aggressive regulatory reform and health care appears to be up for grabs. Alternatively, the party may conclude that its best chance for victory may lie in an aggressive prosecution of the so-called "villains" of the crisis. It remains to be seen if the Republicans can do more than nip at the heels of what remains a strong Democratic majority, but it seems likely to me that the Dems will have to rein in the most ambitious potions of their agenda.

This morning data on jobless claims, leading indicators and the Philly Fed report will set the tone for trading.  Economic indicators have been improving of late and good reports could get the market back to its winning ways. Of all the data coming in, traders will continue to devote most of their attention to jobs, this week in particular, towards the prospects of continued employment for the Democratic members of Congress.