Would you like a little volatility with your coffee? The Dow Jones Industrial Average (DJIA 13,473.7) got the morning kicked off with a 100-point drop, continuing last Friday's bleak performance. On Friday, U.S. stocks dropped sharply in reaction to disappointing earnings and forecasts from Honeywell, 3M, and Caterpillar.

Since this morning's initial drop, the Dow has managed to scratch back to a double-digit loss. Today's loss was driven by concerns that the housing market is having a negative impact on the economy. These concerns were compounded by comments from Randall Kroszner, Fed Board governor. Kroszner said, I would suggest that . . . the recover may be a relatively gradual process and these markets may not look the same when they re-emerge. Kroszner also noted that the Fed's actions to cut interest rates and boost liquidity had helped improve market functioning through strains, particularly in term funding markets, persist even now.