So far there has nothing been very stellar from any of the earnings reports. The huge earnings growth we have seen over the last 2 years is over and now we will have a much slower earnings growth as all the efficiencies from cost cutting have been squeezed out. IBM and Apple report over the next two days. I expect these companies to do well as they have done over the last few years. So we may get some pop from these two companies but after that I think the downtrend will resume.
The macro picture is starting to look a little more dire with sovereign issues in Europe and China further trying to clamp down inflation and end of QE2 looming in the US. The only positive piece of data that could give support to the market in the next few weeks is the jobs picture, other than that I don’t see a whole lot of positives on the macro front in the near term.