The first batch of earnings this week has been solid, and it has been from companies which we expected good things. Companies with lots of international exposure, such as Coke and IBM. The bank earnings are in a strange trend. It doesn't seem to matter how bad their numbers are. It is a pattern of "everyone expected horrible, and we did a little better than that." Economic data from the fed has shown increased weakness in the overall economy. Inflation has made the "price" of everything increase, and this will continue as long as the dollar weakens.
We will continue to see these trading patterns of "Oh great, some companies are in good shape" and stocks surge, and then panic days like last Friday. Google's earnings tomorrow will move the market one way or the other. As investors, we have to be patient.