Futures point to negative open as traders await key economic data this morning. On Tuesday, stocks finished mixed with a weak consumer confidence report offsetting improvement in housing prices. Earnings have remained better than expected, but many feel this good news has been priced into the market. Oversea markets are weak with the Hang Seng losing 1.84 percent and the Nikkei down 1.35 percent. Indices in Europe are also lower on declines in bank stocks and a dip in oil prices.

The Dow (^DJI) did end a two day streak of triple digit losses Tuesday, but the bears still have hold of stocks. The bulls are hoping that a strong durable goods orders report and improvement in new home sales will provide incentive to buy. Economists are looking for durable goods orders to rise 1.5 percent for September with new home sales expected to show a gain of 11,000 units to 440,000. Traders got good news on the housing sector Tuesday when the Case-Shiller home price index showed strength, rising 1.3 percent.

In earnings news, WellPoint (WLP) blew past earnings estimates, reporting EPS of $1.78, 40-cents above expectations. The insurer also provided guidance that was slightly better than expected. Revenues fell 0.7 percent, but at $15.21 billion, results were ahead of estimates for revenues of $15.15. WLP shares are up in pre-market trading by more than two percent to a price near $48.

International Paper (IP) shares are up nearly 4 percent near $23.75 after reporting earnings. The company announced earnings of 37-cents a share, 13-cents better than expected. Software company SAP (SAP) reported a 12 percent rise in profits, but this came from a lower tax rate and better margins as revenues fell. However, SAP is seeing its shares fall nearly 8 percent this morning thanks to a negative outlook.

A number of companies will report Wednesday including the following: Ashland (ASH), Coca-Cola Enterprises (CCE), General Dynamics (GD), GlaxoSmithKline (GSK), Goodyear (GT), Hess (HES) and Symantec (SYMC).

Fear has risen this past week as stocks have fallen with the Market Volatility Index (^VIX) rising nearly 25 percent to a price near 25. The index used 20 as support and has moved higher as traders worry about the economy and just how quickly employment will strength across the globe.

Jody Osborne
Senior Staff Writer & Options Strategist
Optionetics.com ~ Your Options Education Site

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