U.S. stock index futures were little changed this morning ahead of a raft of earnings from technology giants, including Apple. The dollar continues to trade at a three-month high and oil has temporarily halted its slide.
Markets are expected to open flat and then start to slide.
Here is the current market situation from CNN Money
European markets are lower today with shares in Germany off the most. The DAX is down 0.28% while France's CAC 40 is off 0.11% and London's FTSE 100 is lower by 0.10%.
WASHINGTON (Reuters) - The Federal Reserve will meet on Monday to adopt a new rule for the eight largest U.S. banks to hold more equity capital, amid fears on Wall Street that the measure may make it less profitable.
ATHENS (Reuters) - Greece reopened its banks and ordered billions of euros owed to international creditors to be repaid on Monday in the first signs of a return to normal after last week's deal to agree a tough new package of bailout reforms.
WASHINGTON (Reuters) - Lockheed Martin Corp said Monday it would buy Sikorsky Aircraft, the helicopter unit of United Technologies Corp , for $9 billion, and would review the possible sale or spinoff of $6 billion in other information technology and services businesses.
LONDON (Reuters) - British publisher Pearson is exploring the sale of its Financial Times newspaper after receiving interest from potential buyers, Bloomberg reported on Monday, citing people familiar with the matter.
(Reuters) - PayPal Holdings Inc shares jumped as much as 11 percent in their highly anticipated return to the Nasdaq after more than a decade in eBay Inc's fold, valuing the digital payment processor at about $52 billion.
(Reuters) - Private equity firms Blackstone Group LP and Corsair Capital have agreed to acquire a majority stake in First Eagle Investment Management, valuing the company at around $4 billion including debt, First Eagle announced on Monday.
For years we had been covering the steady divergence between plain vanilla GAAP EPS and their "as adjusted" non-GAAP comparable, a number which accountants generally frown upon and which investors love as it always shows a far rosier earnings (and cash flow) picture than is in reality. Lately, this divergence rose to a level not seen since the financial crisis when as we showed recently, non-GAAP addbacks accounted for a quarter of the entire Q4 non-GAAP EPS of the S&P500.
Then, with the usual several year delay, the mainstream press figured out that an ever greater amount of corporate "earnings" is totally bogus. This is what the AP's Bernard Candon wrote last month in a reported titled "Experts worry that 'phony numbers' are misleading investors":
"as the stock market climbs ever higher, professional investors are warning that companies are presenting misleading versions of their results that ignore a wide variety of normal costs of running a business to make it seem like they're doing better than they really are."
The financial analysts who are supposed to fight corporate spin are often playing along. Instead of challenging the companies, they're largely passing along the rosy numbers in reports recommending stocks to investors.
"Companies are tilting the results," says fund manager Tom Brown of Second Curve Capital, "and the analysts are buying it."
An analysis of results from 500 major companies by The Associated Press, based on data provided by S&P Capital IQ, a research firm, found that the gap between the "adjusted" profits that analysts cite and bottom-line earnings fi ...
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