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Procter & Gamble raised sales guidance, boosted by cleaning products. However, cost pressure is high with increase in annual freights and commodity costs. It guides sales growth of 3-4%, but expects inflation to weigh heavily. The stock is responding well, up 4%, a dollar shy away from its all time high of USD164.

Microsoft announced it will buy the video game giant Activision Blizzard in a USD68.7 billion all-cash deal. The videogame maker, known for its popular game "Call of Duty", had a stellar performance until February of last year. But the company's share price dropped as much as 45% as it got hit by allegations of sexual harassments and misconduct. This morning, shares of Activision jumped 38% in pre-market before being halted. In contrast, Microsoft shares are down more than 2%, as investors are judging the deal too expensive.

Yields on US 10-year Treasury Note is causing havoc on markets, up 4-5bp at 1.83%, after retreating from 1.857% at one point. Investors are expecting interest rates to rise and its putting pressure on the yield curve. The rise in borrowing costs is pressuring down stocks globally this morning. The Nasdaq is lower by 1.7% and the S&P 500 by 1%. Europe's Stoxx 500 is down by 1%. As we are entering earnings season, stocks are particularly sensitive as companies resume buybacks only after earnings are out. More visibility from central banks would be welcomed by markets and possibly lower the volatility. 

JPMorgan misses revenues estimates and reports a fall in earnings per share by 12% to USD 3.33. Return on tangible Equity stood at 19%, while return of common equity decreased to 16%. Despite reporting "solid results", market didn't appreciate higher operating expenses and a lower efficiency ratio. The stock dropped as much as 4%, and is trading now at USD163 in premarket trading.

The Nasdaq has difficulties to find new buyers. Following recent news that all Fed members see a March rate liftoff as likely, the tech heavy index reversed early gains and is back to Monday levels. The price action since late December is quite bearish. The formation of lower lows and lower highs indicate a further selling pressure this morning and the index could very well find itself testing the lows of October.