Stocks are trading lower this morning after disappointing earnings from JNJ and a downgrade of Goldman Sachs by Meredith Whitney. JNJ repeated the trend that we’ve seen in recent earnings reports where revenue were lacking. Shares are trading down by over 2%. A prudent downgrade of Goldman also has investors worried about the market’s overall valuation. The PE expansion over the course the last 6 months is one of the fastest on record.
In other news the Rebook and ICSC both posted year over year gains. The Redbook came in at 0.6% while the ICSC came in at 1.0%. The consumer appears to be gaining to a little traction over the last few weeks. This bodes well for tomorrow’s Commerce Department report on retail sales.