Market Snapshot October 5, 2009, 4:25PM EST

Financial Stocks Lead Market Rally

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Eurozone August retail sales dropped 0.2% month-over-month, but the Eurozone September Services purchasing managers' index (PMI) was revised up to 50.9 from 50.6.

The U.K. Sept. services PMI surged to a two-year high of 55.3 from 54.1.

Bloomberg News reported New York University Professor Nouriel Roubini, who predicted the financial crisis, said stock and commodity markets may drop in coming months as the gradual pace of the economic recovery disappoints investors. "Markets have gone up too much, too soon, too fast," Roubini said in an interview. "I see the risk of a correction, especially when the markets now realize that the recovery is not rapid and V-shaped, but more like U- shaped. That might be in the fourth quarter or the first quarter of next year."

Former Federal Reserve Chairman Alan Greenspan said the latest job report showing the nation's unemployment at 9.8% was "pretty awful" and said he expected the figure to climb to 10% and stay there for a while before we start down. He said he was particularly concerned about data in the employment report, released Friday, indicating that an increasing number of Americans have been unemployed for more than six months. That number increased in September by 450,000, reaching 5.4 million, according to the report from the Labor Department.

In company news Monday, shares of Brocade Communications (BRCD) moved sharply higher after the Wall Street Journal reported that the company has quietly put itself up for sale, people familiar with the matter said. Hewlett-Packard (HPQ) is among those kicking the tires, these people said. Other companies including Oracle (ORCL) may also be examining a purchase, said one of the people familiar with the matter. No deal is imminent, these people said, and Brocade could eventually decide not to complete a sale.

Prudential Financial (PRU) shares moved higher after the insurer said it is exploring options with regard to its investment and fund management businesses in Korea.