Well I was incorrect on a couple of fronts from yesterday's "Closing Report." It's been announced this morning that both Wells and Coca Cola have beaten estimates with their 3Q reports. However, only Coca Cola is trading up this morning, at 5% over yesterday's close. Wells on the other hand is trading slightly down in pre trading. JP Morgan announced negative 3Q results, and is trading down almost 3% in pre.
US Equity market futures are also down, with S&P futures trading down 2.75% and Nasdaq futures trading down 1.75%. Global markets are negative as well up to this point, the Nikkei losing almost 3% after its rally to start the week. Crude futures are trading down 3.5% as global recession fears continue to stay in focus.
As I stated in yesterday's "Closing Report", I expected today's Retail numbers to bring investors back to the reality that is this current bear market, and spin the Dow down a couple percentage points, but it appears that investors are already bracing themselves for disappointment, as futures continue to trend down this morning. Along with this, I also think investors are beginning to realize that the government purchase of bank stocks is a great step in the right direction, but that we are only in the infancy of repairing this mess. Felix Salmon from SeekingAlpha raises an interesting point in this article (http://seekingalpha.com/article/99909-will-the-banks-lend) that banks may still be very fearful to lend despite the capital injection from the Treasury.
We'll see if the bulls can step in to some pre trading and make for a positive open, but I have my doubts, and I'm beginning to fear that Retail numbers and investors' move back to the reality of the mess may drag the Dow down more then the 2.5% I called for yesterday.
On a brighter note, the Phils can clinch tonight!
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