EB Watch List Update Report

Dear Members: MARKET NOTE: The positive mood that was present into the last trading day of January has turned negative with all of the major indexes lower. In spite of Google's nice move higher after its earnings last night which has made the company the new king of the hill, replacing Apple as the largest market cap company in the world, the rest of the market continues to struggle. This is very disappointing to the bulls who had hoped to string some positive days together rather than move back to losing ways. A few things worth noting. First, oil has pulled back almost 15% from the most recent high to today's low, dipping back below $30 a barrel. Next, bond yields continue to fall with the ten year treasury note now at 1.87%, a level not seen since April of 2015. So certainly a flight to safety with stocks having trouble gaining any traction. Next, all of the major indexes are back below all key technical levels. So you can see how tough it is for the bulls to make a case to go long here; the sell on the rally mentality hasn't disappeared quite yet; now we'll get a chance to see if traders are also willing to buy on dips. So far the S&P has held above 1900, a level the bulls do not want to lose. To the upside, at a minimum the bulls would like to see a close back above the 20 day moving average, now at 1927. Even better would be a move above yesterday's high of 1947. That might be asking too much but it's what is necessary for the market to have any chance to move higher. KEY EARNINGS REPORTS Companies reporting earnings today (February 2) include: ADT, AFFX, ALLY, ADM, ATML, BAX, CMG, CIT, DOW, XOM, FISV, GILD, HRS, ILMN, GMCR, LAZ, KORS, PFE, PBI, RCL, R, SIRI, UPS and YHOO. Companies reporting earnings Monday (February 3) include: ALXN, ALL, ADP, BWLD, CBOE, EXC, GM, GSK.l, GPRO, IP, JLL, LNC, MAN, MRK, MET and YUM ADDITIONS TO WATCH LISTS: First, please note we have updated the Candidate Tracker, removing some of the older stocks and adding some new ones. We will have more to add during the week and as more companies report their numbers. We will hold off adding any new additions until things settle down a bit. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Large Cap Watch List There are no Large Cap stocks on the Watch List at this time. Mid Cap Watch List There are no Mid Cap stocks on the Watch List at this time. Small Cap Watch List STMP - Stock is holding up pretty well relative to the overall market. DELETIONS FROM OUR WATCH LISTS: There are no deletions from the Watch List today unless a Watch List stock closes below the stop loss provided. At your service, John Hopkins, EarningsBeats