U.S. stocks got off to a bad start to begin an extremely data intensive week, as Japan embarked on yet another stimulus in its 2 decade struggle.  The S&P 500 fell 1.5% and NASDAQ 1.6%, essentially erasing all of Friday's dead cat bounce.  The main economic report of the day was personal income and outlays; incomes (+0.2%) rose less than expected (+0.3%).  Spending increased (+0.4%) more than expected (+0.3%).   Obviously spending rising more than incomes is part of the problem that took the U.S. to where it is now.

• The 0.2% increase was mostly the result of small wage and salary gains that fell far below increases seen in more robust economic recoveries, economists said. And some of the gains came from a jump in Social Security payments.

Later this week will come a slew of key industrial reports including U.S. Manufacturing Purchasing Managers Index (Wednesday morning), and similar reports from China (Tuesday evening) and Europe.

In the commodities market crude oil fell 0.6% to $74.70 while copper gained 5 cents to $3.41.  Precious metals were mixed with silver flat and gold up 0.1%.  The 1 day bond selloff Friday was reversed in short order, yields fell from 2.65% to 2.53%.

European markets were down with losses in Germany (-0.7%) and France (-0.6%).  British markets were closed for holiday.

Asian markets were positive, mostly in a knee jerk reaction to yet another stimulus plan in Japan; Japan gained 1.8%, China 1.6%, and India 0.3%.  However, Japanese shares were down from their highest levels of the day as the size of the stimulus did not satisfy the speculator's expectations for even more handouts.

• To boost liquidity, the Japanese central bank unveiled a new six-month low-interest loan program to financial institutions. Combined with an existing three-month funds-supplying operation worth 20 trillion yen ($236 billion), banks will now have access to a total of 30 trillion yen ($355 billion).
• The central bank's move was followed several hours later by Prime Minister Naoto Kan's plans for a new economic stimulus package worth 920 billion yen ($10.9 billion). Those steps were also criticized as inadequate.
• The new stimulus package includes more help for jobseekers, such as enhanced career counseling at universities and an internship program for new graduates. To bolster consumption, the government hopes to extend incentives including a popular "eco-point" program aimed at encouraging purchases of energy-efficient home appliances.
• Richard Jerram, head of Asian economics at Macquarie Securities, described the Bank of Japan's decision as a "helpless, hopeless policy." The government's modest stimulus appears similarly pointless, he said.  "There seems to be a sense of fatalism," Jerram said in a report Monday. "The BOJ continues to play the same old game of making incremental, but ultimately meaningless policy change, in response to political pressure."

Brazil fell 2%, helping to erase much of the gains from Friday.