beejal and we're seeing a bit of a sell-off here in july. yes the s&p 500 back into negative territory, down 2 1/2% for the year. so now the focus is on second quarter earnings season. alcoa, chevron, pepsi bottling co. all reporting earnings this week and of course experts are saying the focus is going to be on how these companies foresee the rest of the year. and not only these companies were going to be hearing from in the days ahead but those key financial companies that were able to spark the rally back in march. is there any reason for optimism that we saw in the first and second quarters to continue to wash over in the second half of the year. california faces several more credit down grades... as every day passes... and it does not have a fiscal 2010 budget in place. this week, fitch ratings is the latest to cut california's credit rating to triple b - which is 2 notches above junk status. state lawmakers are in the process of trying to close a 26 billion dollar budget short fall... in the meantime... california is now facing a liqui

with tom hudson and beejal patel. >> it is financial report card system. welcome everybody. ahead of another big week of trading and a big week when it comes to the corporate earnings and profit picture for u.s. corporations. for that matter, beej al, really the outlook for the second half of the year. >> and second quarter earnings reports this week, caterpillar, 3 m, coca cola as well as testimony from the federal chairman. he heads to capitol hill to talk about the monetary policy and certainly the economic outlook. >> also the situation behind small business lender cit. we spoke a lot about that last week. the question for the market is can it absorb some of these big uncertainties in the market once again? >> small businesses considered the engine of our country, right now that industry is stalled and facing sth big hurdles. not only is lending so tight that business owners cannot get loans, they are also bracing for sweeping health care reform that make threaten to put small business companies out of business. >> small businesses across the country continue to operate