Monday, January 30 Market Recap

MONDAY (DJIA -7) Down more than 1% in early trading, stocks recovered most of those losses as the day wore on. Volume was light ahead of important Euro meetings early this week, an expected deal on Greek debt, and the labor report on Friday. Consumer spending was flat in Dec.; +.1% was expected. Personal income was +.1%; +.4% was expected. All eyes are on the EU and they meet today to decide issues that are very important to the future of the EU. Chinese markets re-opened after taking a week off to celebrate the Chinese New Year. They played catch-up today, so the action is not too telling.

99 of the S&P500 firms report this week. So far, according to Merrill Lynch, 196 of the 500 have reported. 49% beat earnings estimates, 46% beat revenue estimates, and 32% beat both. Misses are largely attributable to financials, headwinds from a stronger $, low natural gas prices, and weakness in Europe. Tech, industrials and healthcare have posted the strongest performance. Telecom and utilities were the weakest. In total, profits are up 12% year over year.