Tuesday Market Roundup: Continued Reductions in Earnings Estimates

The market was lower Tuesday morning on continued reductions in earnings estimates and general macroeconomic concern. Google (GOOG) had its earnings estimates reduced by Goldman, and several other companies were seeing reductions in their earnings estimates as well.

Starbucks (SBUX) reported earnings that were below expectations, and well down from last year's levels. Maybe consumers are even scaling back on $4 lattes, especially when you can get ones at McDonald's (MCD) now.

On a positive note, the WSJ reported that Fannie (FNM) and Freddie (FRE) are expected to announce plans Tuesday to modify hundreds of thousands of loans held by the GSEs. The plan is also being backed by the Treasury, with the aim of bringing down the ratio of household debt to income down to 38%.

Citigroup (C) will also announce plans to help prevent foreclosures, including modifying mortgage terms for up to 500,000 homeowners. I have heard they might lower mortgage rates to 1-2% for up to 2 years. Um, can I get in on that?

Asian markets were lower across the board overnight. The dollar was up sharply vs. the Euro Tuesday, and the Yen was up slightly. This pressured commodities, with oil falling again, now below $59.

The 10-year yield was flat at 3.75%. And the VIX was up +7% to 64.

Disclosure: long C calls.