The market's direction hinges on the earnings news for now. Investors are becoming very sensitive to bad news.

The GDP figure was within our estimates and there was no surprise there. That lack of surprise may have prompted profit- taking.

Investors have started selling real estate stocks on speculation higher interest rates in Japan will hurt their earnings as borrowing costs trim their future profit.

The U.S. economy is the key to export stocks. Automakers and technology shares may rise further once investors confirm the country's economic strength.

Companies that rely on the Chinese market may suffer if China continues raising rates.