Stocks are broadly lower as the real storm proved to be, not in New York City, but on the earnings front. A number of Dow stocks, including Microsoft (MSFT), P&G (PG), and Caterpillar (CAT), are reeling in the wake of their respective profit reports.

In fact, of the 70 companies that reported since the closing bell Monday, 40 (or 57.1%) are seeing negative post-earnings reactions in their share prices. Consequently, earnings expectations for the rest of 2015 are being re-calibrated and valuations are being adjusted accordingly.

The Dow is down 223 points.

Meanwhile, the yield on the benchmark ten-year Treasury hit a morning low of 1.75% on a poor Durable Goods print, but has been ticking higher since the latest Consumer Confidence numbers came in ahead of expectations. 10-year yields at 1.825% and the highs of the day.

Crude oil added 85 cents to $56 and gold gained $14 to $1293.50.

Trading in the options market was very active in the first hour, but then trading fell off sharply amid a clear decline in put activity. Roughly 6.5 million calls and 5.9 million puts traded across the exchanges, which has total volume running about 5% below the recent daily average.

However, more than 1 million options traded in Apple (AAPL) ahead of earnings, due out after the bell. The stock is off $2.10 to $111 and the Weekly (1/30) at-the-money 111-strike straddle is trading at 6.5% of spot, which compares to an average daily move of 5.2% after the previous 8 earnings reports (see table below). The Weekly (1/30) 120 call, which is 8.1% out-of-the-money heading into the results, is the most active Apple option of the day. Volume is approaching 40,000.

Options on Yahoo (YHOO) and AT&T (T) are drawing interest today ahead of earnings as well.

Tomorrow holds the FOMC meeting and that, in turn, might take some of the focus away from the weak earnings Q4 reporting season. 

See you then.