Last night there were some solid earnings reports from the likes of Nike (NKE), Jabil Circuit (JBL) and Micron (MU). And this morning there was a better than expected GDP report, with Q2 GDP being revised upward to -0.7%, better than the -1.2% rate expected.

The futures were trading higher before the market opened, but when the Chicago Purchasing Managers Index was released, the market was hit with a sharp selloff. The Chicago PMI came in at 46.1, which is well below the 52.0 level expected. It was also below the 50 reading from August.

The Chicago PMI is not normally a big market moving event, so I'm not sure why it elicited such a strong reaction today. I would have thought that quarter-end buying would have provided more of a cushion to the news. Of course, the day is still young, so anything can happen.

The S&P 500 bounced off its 20-day average this morning around 1046, and is currently back above the 1050 level. The Nasdaq is seeing similar price action.

The dollar is lower today, providing a lift to commodity prices. Oil is slightly higher, trading near $67, while gold prices are trying to get back above $1000 (currently $998).

Asian markets were mixed overnight; the 10-year yield is flat near 3.29%; and the VIX is +2.2%higher to 25.75.

Trading comment: I continue to look for opportunities to add in small increments to stocks that have pulled back. The stair-step market is still in effect, and trading opportunities abound. The market is also working off its recent overbought condition, and sentiment has yet to become overly bullish.

Some might question that last statement when looking at this week's BusinessWeek cover. It shows a long staircase higher, and talks about why the market can continue to go up. Staircase? Have they been reading In The Money? Anyway, I haven't read the article yet, just mentioning it as a sentiment indicator.