US stock futures are unchanged this morning as investors remain cautiously optimistic about Europe and continue to digest corporate earnings. Tomorrow, European leaders will once again convene to try to put together a plan to address the region’s sovereign debt crisis. While to this point there has been much talk and little action, investors seem to have faith that officials will do what is necessary to instill confidence in the system.

The two European powers spearheading the debate, France and Germany, continue to have differences of opinion on how to increase the firepower of the EFSF. German Chancellor Angela Merkel is expected to ask parliament to approve a plan that would add 440 billion Euros to the rescue fund, which would be leveraged to provide about 1 trillion Euros in firepower. The vote is expected to be taken ahead of Wednesday’s crunch summit. In addition, the Financial Times is reporting that negotiators are asking Greek bondholders to take a 60% haircut, a dramatic increase from the 21% agreed upon in July.

This earnings season has been a mixed bag so far, with some notable casualties as well as rousing successes. Apple (NASDAQ:AAPL) missed on its first report in 6 years, and another former market leader, has fallen harder than humpty dumpty. After last night’s earnings report, the company is now left to pick up the pieces of what once seemed like an unstoppable media juggernaut.

When Netflix (NASDAQ:NFLX) dramatically raised prices last year, they likely knew there would be some defections, but they certainly could not have expected the backlash they received from subscribers. Last night’s 4th quarter guidance reflects that greater than expected cancellation, and investors piled out of NFLX after seeing the numbers. NFLX is currently down about 34% after hours, back to levels last seen in early 2010. At one point does NFLX become a buy? The stock will certainly be in play for traders, but it remains to be seen if the company and stock can make a comeback.

Hints dropped from NY Fed President William Dudley yesterday also served to boost optimism. The dollar slumped yesterday as Dudley said the Fed could do more to help the housing market. Similar rumblings came last week from Fed Governors Daniel Tarullo and Janet Yellen.

While a lot of fireworks have already gone off this earnings season, there are still some big names left to report. Amazon.com (NASDAQ:AMZN) has a chance to emerge as a clear market leader after it reports earnings after the bell today. The Internet bookseller turned tech behemoth is attempting to penetrate several new markets, and it will be interesting to see how much of that is reflected in its earnings.

Scott Redler
Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader. Scott Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Scott moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, he maintained his status as a top trader in the industry while working closely with all traders in the firm to dramatically increase performance. Scott has participated in more than 30 triathlons and one IronMan triathlon, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business and Bloomberg, and he has been quoted in the Wall Street Journal and Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers. T3LIVE.com is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time.

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