MORNING MARKETS

Markets trade lower on the heels of some earnings/guidance misses from some high profile companies including GOOG MSFT and CAT. The DJIA is -110, Naz -26 and SPX -10.

Weakness is across the board as the only winning sectors can be found in metals, oil service (SLB), airlines and drugs while homies, gaming, brokers, small caps, trannies and internets lag.

Winning stocks include ISRG SNDK LRCX APOL AAPL SLB COF WMB HAL TBSI ICE C SLG HOC BBBY.

Losers include CNH BIDU SIMO TEX SYNL CMCO CAE CAT GOOG AA LEH GS MS MSFT ETR ADSK ERIC XLNL GILD LOGI JOYG.

Market internals are very weak with 1,400 net losers on the NYSE and NAZ.

The NDX shows 2/1 losers to gainers while the OEX is far worse at 4/1.

VIX higher by 5% and VXO by 8%; both trading above their 10 day SMA's but not at buy signals yet.

OIH at an all time high on the heels of SLB numbers and may be time to take some off or sell some August calls.

The agriculture group getting sold this AM on the CAT news and it may be time to dip for AG CNH DE MTW and/or POT.

Overall, my guess is we are at a buy here as Monday morning will probably bring some M and A activity which will likely send markets higher next week.