12:40pm (EST)

The market has held up well today despite the Apple (AAPL, $339.87, down $8.61) news as all three indexes are in the green as we head towards the second half of trading.  We didn’t have any exposure to Apple and shares have bounced off their morning lows but it is hard to say where this stock is headed with earnings after the bell.

As far as economic news, the Empire State manufacturing survey for January came in at 11.92 versus estimates for a print of 14.  Elsewhere, the housing market index for January was 16 and unchanged from December. 

The Financial sector is showing a little weakness today and is down about 1.0%, perhaps on the Citigroup (C, $4.85, down $0.28) miss.  The company reported a profit of $1.3 billion, or $0.04 a share, versus a loss of $7.6 billion, or $0.33 in the same period a year ago.  Revenue came in $18.4 billion compared to $5.4 billion a year earlier.

Wall Street was looking for Citigroup to report earnings of $2 billion, or $0.08 a share.  For the year, the company earned $10.6 billion on revenue of $86.6 billion.  Volume has been brisk as over 1 billion shares have traded hands.

Citigroup was the second major bank to report earnings following JPMorgan Chase (JPM, $44.77, down $0.14).  There are a few other big names reporting this week and while Citi was a disappointment, JP got upgraded to a “Buy” last night from one well-known analyst.  The Financial stocks have been on a nice run up until earnings season and for the momentum to continue, they will need to put up better numbers.

All-in-all, it’s been a decent day for the bulls and we said last Thursday that we expected a continued rally into Tuesday or Wednesday and so far, so good.  Our price targets of Dow 12,000; S&P 500 1,300; and Nasdaq 3,000 are getting close.

Currently, the Dow is at 11,849 (+62), the S&P is trading for 1,294 (+1) while the Nasdaq is at 2,757 (+2).  We will be back in the morning with a full update.