Is Bad News Already Priced In?

Good morning. Premarket futures are pointing to a rough day after General Electric (GE) surprised Wall Street by reporting lower than expected earnings. This news will help test the market's hope that bad earnings news today and later this month is already priced into the market. We'll learn a lot by how the market deals with this news.

Premarket gainers: TZIX, PDLI, CVTX, FAST, CNTF, PRLS, AMGN, JBLU, LKQX, CEGE, NOEC, EXAC, and CTCM.

Premarket losers: GE, FRNT, FDRY, ZRAN, AKNS, GERN, PWER, WM, MELI, ESLR, STSA, VDSI, SOLF, SNDK, ARRS, ACPW, SPWR, FFIV, SNCR, BLK, PCOP, GRMN, INFY, and RIMM.

Along with more Fedspeak with Fisher this morning, at 10:AM we have the release of the consumer confidence index which is expected to fall once again. But, again, this day is all about GE and what impact its report and guidance will have on the market itself. Last night I drew a forming trend channel on the S&P 500 (see below) and that's what I'll be watching in this morning's weakness. Have a great Friday!