More Arm Wrestling

Good morning. Investors don't seem to be in a buying mood this Wednesday morning. Perhaps everyone has grown tired and frustrated with positive market opens only to later surrender those gains by the closing bell. I can't say I blame them.

While everyone is blaming Intel's (INTC) disappointing guidance for this morning negativity, there are quite a few solid earnings reports out there from the likes of Yahoo (YHOO), Motorola (MOT), Cheesecake Factory (CAKE), ICU Medical (ICUI), & JP Morgan (JPM). In addition, housing starts and building permits in September both came in higher than expected. Perhaps the premarket futures are giving us a false read.

Yet, it is difficult to argue with the fact the market's mood continues to be quite gloomy. Case in point - 75% of U.S. investors in a Merrill Lynch survey said profit growth for publicly traded U.S. companies will slow in the next 12 months. Global investors were also very pessimistic on U.S. stocks. Not helping matters include continued comments from several of the members of the FOMC that indicate higher interest rates are still ahead.

Among more earnings reports & conference calls, traders will also be watching the oil inventory data due out at 10:30am. In addition the Federal Reserve will release its Beige Book, a survey of regional economic conditions, at 2 p.m. Hurricane Wilma, while not threatening to the oil infrastructure, will also be closely watched as it jumped to a Category 5 status overnight. And, finally, the sharks will certainly surround the debut of the CBOT (BOT) as it begins trading.

The bull and bears are likely to step up their efforts today to take control over the tape, so it will be important to note who wins this prolonged arm wrestling match. Have a wonderful Wednesday!