Big miss last night on IBM which took the markets down 50 points on the open.
Retail sales are up 7 percent but investor sentiment is weighing heavy on the markets. This is the first big miss of the earnings season and tarnishes the strong positive reports we have had so far in this reporting period.

Not all the earnings news was bad, but markets sold off quickly on the big DOW miss. Healthcare giant Johnson & Johnson posted a 7.5 percent increase in second-quarter income despite ongoing recalls of popular nonprescription medicines keeping sales flat.

Harley Davidson is up 8% with an earnings beat in early trading.

PepsiCo reported a quarterly profit above analysts' expectations.

Goldman beat on earnings estimates but came in light on revenue.

In the first half hour of trading we have seen the initial downward surge ease off. Will be back at 10:30 and we will review the initial hour of trading.