More Bernanke Testimony and Earnings Reports

The testimony from Fed chairman Ben Bernanke continues in the Senate today. His opening remarks will be unchanged from yesterday’s testimony to the House, but a new Q&A could push markets in either direction if the chairman offers any surprises. In yesterday's remarks Bernanke made it clear that, contrary to popular phrases, the Fed chairman won't be taking away the punch bowl any time soon.

Assuming today's Q&A is all a repeat of Tuesday, earnings and speculation will drive markets today, as no major data is scheduled for release. The big earnings reports include Morgan Stanley and Boeing. 

An hour before the opening bell futures are looking downward, following a 7-day rally that has lifted the S&P 500 up 8.15%. Earnings from Yahoo! and AMD are said to be culprit for this morning’s pessimism, but a positive report from Apple is keeping some investors afloat.

Moreover, when Caterpillar released its better-than-expected report yesterday, the company said in a statement that “fiscal policy and monetary stimulus have been introduced around the world, and we are seeing signs, particularly in China, that they are beginning to work.”

The Real Estate market also received some decent news this morning. The Mortgage Bankers Association reported that even with average rates for a 30-year loan rebounding to 5.31% last week, applications for purchasing and refinancing each increased in the week. 

Purchases can be expected to increase as house prices continuing to fall, and at 10 am today the FHFA index of home prices â€