How Low Will Energy Stocks Go?

Monday was the worst day for the stock market since last November as the Spyder Trust (SPY) was down 1.33%. This was better than the 2% or greater declines in the Philadelphia Housing and Oil Service sectors.

The market selloff was blamed on lower crude oil prices along with concerns about the earnings season, which hits full stride this week. So far, 90% of the companies that have released pre-announcements for the earning season have lowered their estimates.

Asian markets were hit hard overnight but the losses, so far, are not that bad in the Eurozone. The banks will get the focus today with JPMorgan Chase & Co. (JPM) and Wells Fargo & Company (WFC) reporting today. JPM just reported a 7.3% drop in quarterly profits before the opening. (more)

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