Gloomy Guidance

Good morning. Futures suggest another rough day for the market as investors sort through the latest batch of earnings reports. Much like yesterday, the reports were not as bad as the forward guidance as most companies are keeping expectations low.

Also contributing to the negative sentiment this morning is weakness in overseas markets and news that Samsung withdrew its offer to acquire SanDisk due to "uncertain business conditions."

Premarket gainers: AAPL, BRCM, MICC, SPLS, DTG, CAR, PAS, CBL, BKC, AZZ, CREE, VMW, EMC, YHOO, MCD, BSX, NSC, RJET, ABK, NITE, ATLS, NT, FEED, NUAN, & AMLN.

Premarket losers: SNDK, IPI, GOLD, ERIC, GSX, CENX, ACGY, MDCO, PPDI, MKSI, PPDI, SQM, WB, CVH, SIAL, BBL, CX, PCX, KND, BHP, BP, CF, MRK, KMB, T, BA, GSK, & RIO.

We only have two reports on the economy - mortgage applications - which were at an 8-year low and the weekly EIA Petroleum Status Report which will come out at 10:35AM. Oil prices are down 4% this morning.

The weakness we're seeing in the futures is probably reflective of declines in overseas markets, but clearly there's continued concern about whether expectations are low enough given the gloomy guidance by so many companies. If the market has found a true bottom, we should see stocks rally on this news rather than continued selling. Have a wonderful Wednesday!