When all is said and done, third-quarter earnings will probably be good and fourth-quarter forecasts good enough to cool some of the worries about inflationary pressures hurting corporate profits,

The momentum will change. Technology stocks are due for a correction, without bringing down the market.

But throw in a very visible company lowering its guidance going forward and the focus shifts back to the same problems of an uncertain economy, uncertain earnings and the Middle East problem, which has not changed,

The basic factors that caused the market to go down remain in place, and I think those worries are going to be with us for the next couple of months, ... certainly until we get third-quarter earnings reports, and maybe through the election.

You clearly have to keep watching this inflation issue. You do have to have some concern that, based on history, the current amount of economic growth should lead to inflation. But if you talk to companies, it's not happening.

You have to have a powerful earnings turn around this year to justify gains from current levels,