Earnings To The Rescue?

Premarket futures are up as investors have faith that strong earnings reports will inspire a turnaround. Earnings from Genentech (DNA) and Alcoa (AA) have certainly given the bull's some preliminary encouragement. Furthermore, investors anxiously await the reports from Apple Computer (AAPL) and Advanced Micro (AMD) after today's closing bell.

Like last earnings season, traders will be focused not only on the earnings reports themselves, but more importantly, the reactions the stocks have after the news is reported as well as the guidance for the 4th quarter. Many traders try to play the anticipation game ahead of the earnings releases, but as you know, I avoid that common strategy. Instead, I'll be focused on finding muted reactions to very good news as well as other inefficiencies that always seem to come up during earnings season.

Beyond the focus on earnings reports, investors will also be watching oil prices which are firming up today as well as the minutes from the Fed's September 20th meeting due out at 2 P.M. Have a great day!