The Traderszone Network

The first drop in equities was more than a month ago, yet price has not come within even 2% of the original low since then. Despite this, bearish sentiment continues to rise as if new lows were being formed. The infamous month of October arrives this week…

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    Forecasts for third-quarter S&P 500 earnings now call for a 3.9 percent decline from a year ago, based on Thomson Reuters data, with half of the S&P sectors estimated to post lower profits thanks to falling oil prices, a strong U.S. dollar and weak global demand. A rolling 12-month forward earnings per share forecast now stands near negative 2 percent, the lowest since late 2009, when it was down 10.1 percent, according to Thomson Reuters I/B/E/S data.

The shock resignation of U.S. House Speaker John Boehner on Friday reduces the chances of a government shutdown next week, potentially removing one source of investor anxiety as Wall Street gears up for a week heavy with economic data and commentary by Federal Reserve policymakers. Boehner said Friday he will step down from the speakership and leave the House at the end of October. This was seen as a sign that Boehner would advance a bill to fund the government without any complicating factors that would result in a White House veto.

Hewlett-Packard Co was made aware of practices at Autonomy, including hardware sales and growth rates boosted by different accounting rules, before it bought the firm for $11 billion in an ill-fated deal, according to founder Mike Lynch. HP is suing Lynch, and former Autonomy finance director Sushovan Hussain, in London for damages of about $5.1 billion for their management of Autonomy, alleging they engaged in fraudulent activities to boost the value of the company.

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Caterpillar Inc’s (CAT.N) suppliers were feeling the pain of slumping sales at the world’s largest mining and construction equipment maker long before it announced an extensive cost-cutting program. J-TEC Chief Executive Officer Gary Roling said Peoria, Illinois-based Caterpillar, his single largest customer, had recently pushed back a big order due this month to December. “We’ve been selling to Caterpillar for a long, long time, and this year will likely be the lowest year for sales we’ve ever had,” said Roling, whose company makes tools to measure the flow of fuel, exhaust and other gases.

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Just before the FOMC decided to not decide last Thursday, we asked if the scuffle depicted below was Japanese lawmakers’ attempt to act out what they imagined might go on in the Eccles Building during what was billed as the most important Fed decision in recent history:

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