Stocks are down globally. You can blame it on several issues--concern about inflation and high property prices in China, bank tests from the European Central Bank, or just lousy guidance from Caterpillar, but the most likely explanation is that stocks are greatly overbought. The S&P 500 is up 4.4 percent this month.
In general, it's been a rough morning for earnings, but particularly for guidance. In tech, Cree, Juniper Networks, Altera, STMicro and all gave revenue guidance that was disappointing.
Caterpillar had another big miss, lowering its 2013 earnings guidance by a full dollar to $5.50 from $6.50 and lowered 2013 revenue guidance to $55 billion from $56-$58 billion. The biggest problem: a slump in mining.
Airgas also lowered its full year guidance, citing in part reduced consumer confidence around the government shutdown.
There were a few upside surprises in the latest batch of reports: Aerospace has had a great morning. Boeing, reported a strong beat on top and bottom lines, and raised full year earnings guidance while affirming revenue. Northrop Grumman reported a strong earnings beat and raised 2013 full year earnings and revenue guidance. In addition, BE Aerospace confirmed their 2013 guidance.
Lumber Liquidators had another good quarter...traffic was up almost 10 percent, with comparable store sales up 17 percent. The company raised full year 2013 guidance to $2.65-$2.74, from $2.45-$2.60.
There have also been good reports from Norfolk Southern, Lilly (boosted by strong Zyprexa sales), and Wellpoint, which beat on top and bottom line, benefiting from increases in membership.
—By CNBC's Bob Pisani