Morning Market Outlook

The markets are near the flat line in early trading as investors digest mixed earnings reports from two big-name companies and Japan’s GDP that was released overnight.

The nation’s largest retailer, Wal-Mart (WMT), missed earnings expectations this morning and the stock is trading lower by over 2%. A former high-flyer, Cisco Systems (CSCO), beat their numbers last night and is surging in pre-market trading with a gain of 10%.
{ETFs to Watch: QQQ, RTH, XRT}

Japan reported growth of 3.5% during the first three quarters of the year, a possible signal that the stimulus package has been working for the country. The better than expected number did not lead to a rise in Japanese stocks because inside the number it showed that consumers are spending, but corporations are still hesitant. Also take into consideration that the Nikkei is already up 45% in 2013. Maybe time for a breather??
{ETFs to Watch: EWJ, DXJ, FXY}

Gold and Silver continue their downtrend with another loss in excess of 1% this morning. The trend is clearly not in the favor of the precious metal sector and I would continue to avoid it at all costs.
{ETFs to Watch: GLD, IAU, SLV}

I would not be shocked if the market experiences some profit-taking today after hitting yet another all-time high yesterday. My strategy will be to continue using weakness as a buying opportunity for higher stock prices later this year.