Global Economic Concerns Weigh on Sentiment

After slightly rebounding yesterday from last week's solid declines, stocks are back under some pressure as concerns about the impact of tighter lending in China on the global economic recovery are resurfacing to pressure sentiment in early trading. Additionally, uneasiness regarding Japan's sovereign credit quality on the heels of an outlook downgrade by Standard & Poor's and a smaller-than-expected increase in 4Q UK GDP are adding to the global economic concerns. Meanwhile, stocks have come off the worst levels of the day as traders are trying to digest a plethora of major earnings reports, headlined by mixed profit releases from several Dow members, along with bottomline announcements from Apple and Texas Instruments, which both exceeded the Street's estimates. Some on the Street are treading with some caution ahead of the Federal Reserve's monetary policy announcement tomorrow and ahead of a key report on consumer confidence. Treasuries are gaining ground in morning action amid the aforementioned economic uneasiness, and following a report that showed US home prices fell more than expected. Overseas,
Asian markets came under solid pressure, while European shares are also in red despite a better-than-expected reading of business confidence in Germany-Europe's largest economy.