The market is getting slammed from the one-two punch of Goldman Sachs and Johnson and Johnson, the number one and number nine largest weighted stocks in the Dow Jones Industrial Average.  The street is taking a decidedly negative tone on earnings in general, even on names that beat and provided upbeat guidance. 

Last night it looked like United Airlines would be a huge winner, but today the stock is under a ton of pressure with the shares trading lower now than in the immediate aftermath of that passenger dragging video.  IBM reports after the close, and after 19 consecutive quarters of lower revenue, you would think the stock would be lower; but, it’s largely unchanged.

Capacity utilization and production isn’t a market-moving data point, but it’s an important gauge for manufacturing.  Stuck in a tight range in 2016, after collapsing the year before, utilization is beginning to edge higher driven by mining.  With new assumptions on the timing of the Trump economic agenda, including infrastructure, it may be difficult to move the need much more, although increased tariffs on Chinese steel would help.

There are names that have reversed, including several that could benefit from the “America First” Executive Order being signed later today, but this session is about earnings coming up short in a market where many were already spying the exits.

This is the kind of test the rally needs from time to time.  The toughest part is all the exogenous events and uncertainty that is now added to the mix.