The market was off about 10% in the last two days. This morning Ford announced its weak earnings and a higher drain on cash of $7.7B. The good news is they still have $29.6B left in the coffers which the company claims will be sufficient to get them throught 2009. At 8:30 non-farm payrolls will be announced and there is anticipation that it could be worse than the expectation 200,000 jobs lost. Lost jobs is the key to how long and deep the recession will be. A very negative number could cause the markets to plummet again but much of the past two days activity was foreshadowing today's unemployment.
General Motors is also reporting at the end of the day and those numbers promise to be worse than Ford's. Disney reported last night and they indicated advertising was weak and getting weaker as their stock dropped after the close. Sprint reported weak numbers this morning and this trend will continue for a while.
It is getting tougher to forecast short-term moves in the market but we are getting close to the October lows and large liquid stocks are starting to become attractive again. Many of the great stocks may not hit those bottoms but if the market keeps declining they will get close so be prepared to buy.
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