With pharmaceuticals, the problems are pretty well known. I don't think they're going to get any worse from here.
From a technical standpoint the markets are a little oversold. There's tinder for the fire if the markets pick it up. Investors have to reconcile themselves that they're never going to find the bottom.
It's the wildest market I've seen in some time. We've gotten to a point where we may get a short-term rally for the next week or two, but beyond that, the market is likely to retest those lows and even go lower. There still isn't much confidence out there. The market crossed back and forth over the breakeven line 18 times today [Friday], which tells you how jittery investors still are.
One positive is that S&P earnings so far have looked better than the year-earlier period. Granted, comparisons are a lot easier as companies take less write-offs, but it's still something that's encouraging.
GE will probably talk up their numbers, but I don't know if I buy it.
It may have taken a little while for (3M and Lexmark) to sink in. Lexmark is certainly not a bellwether, but it was one of the stable names in the tech sector.
There's a general concern about the economy and corporate profits. The deals seem to be driven by the ability to reduce costs or create greater synergies of scale, so it's not something that's going to help them meet next quarter's earnings.
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