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GREAT NEWS & DATA NOT ENOUGH
By Charles Payne, CEO & Principal Analyst

8/31/2009 1:18:15 PM Eastern Time

NEW YORK, NY This is the session I've been waiting for and knew was coming soon. You know where all the news is good news and yet the market moves lower and lower as if being pulled by a powerful gravitational force. That's today's session. There are two big time deals, one for close to $6.0 billion in the oil patch and the other in media with Marvel (MVL) being acquired by Disney (DIS) for $4.0 billion. (Tomorrow morning I will show how the current administration in Washington DC could learn a thing or two from the history of Marvel.) In addition to consolidation the Chicago PMI results were very impressive, too.

Headline Chicago PMI was 50.0 versus consensus estimate of 48.8 as all the key components moved higher.

* Production: 52.90 from 43.30 m/m

* Employment 38.70 from 35.20 m/m

* Prices paid 55.00 from 35.00 m/m

The report addresses two areas of concern. The employment reading ahead of Friday's big jobs numbers is encouraging while the surge in prices paid alleviates lingering worries about deflation. This is only a regional report but it's considered to be very influential and prescient with respect to national economic trends.

In addition to meandering here, the market may be waiting to take its cue from China's stock market. The world continues to watch China for global economic clues. There are two distinct camps when it comes to China and I will say I come down on the side of those that believe the juggernaut will continue to move full-steam ahead. For now, however, there is a shakeout that comes after such a mind boggling run and so much chatter about an overdue correction.