(as of 7:00 AM PST)
International markets continue to rise fueled by easy money financial stimulus programs. US markets are close to unchanged in early action. Earnings season is upon us and further direction is likely to be driven by whether US companies can overcome dismal earnings projections. The strong US dollar and drop in the price of oil will be strong contributors to weak corporate profits. The lower oil prices are a factor because of a reduction in capital expenditures and services for oil drilling. Gold is up this morning bucking the stronger dollar while oil is close to even. A big piece of corporate news is the major restructuring of industrial giant General Electric. GE is casting off its financial services business and real estate in an attempt to go back to its industrial roots. That news and a massive buyback program have the stock up 8% in early going. Expect weak earnings to pull stocks lower over the next few weeks.
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