Wakeup Call: Equities Trading Higher On Better Than Expected Earnings From Yahoo! And SAP

Positive earnings surprises in earnings releases will make equity markets trade higher as the market hungers for positive news. It does not alter anything on fundamentals equities will go lower.


What's going on?

General Electric's Long-Term Aaa-rating could be cut, says Moody's. That's a big deal for a company worth $137B.

The German government is planning to take a 70% stake in Hypo Real Estate, which has already been bailed out twice.

The US Consumer Confidence was out at the lowest level ever (at least since 1967).

Watch out for the FOMC Statement tonight. The rate probably won't be changed but new programs and interventions might be announced.