Stocks Finish Red Despite Better Beige Book

"The market rally may consolidate for the next several weeks -- some up days and some down, and even a mild correction -- but overall we are headed higher on stocks by year-end," writes Peter Morici, a professor at the University of Maryland School of Business and former chief economist at the U.S. International Trade Commission.

Still, others, like Matthew Smith, vice president of Smith Affiliated Capital, argue this is still a bear market rally. Click the button below to get Smith's take on earnings and the economic recovery.

A bit of economic data also diverted attention from earnings as the Department of Commerce reported a larger-than-expected decline in big-ticket items, or durable goods, in June. Orders fell 2.5%, vs. expectations for an 0.6% decline and a 1.3% increase the month prior. But factoring out transportation, orders rose by a greater-than-expected 1.1%.

"The core stayed solid," writes Morici. "Equity markets may read this report negatively, but a combination of good and bad news on the economy will continue for the next several months," Morici said, adding that the proportion of good news will increase. "That's the way turnarounds become expansions."

As for earnings, Sprint shares plummeted 11.8% to $4.05 after it reported a widened and wider-than-expected second-quarter loss on declining subscribers and revenue.

WellPoint(WLP) shares were also off, by 5.7% at $41.28, after the health insurer said profit fell by a less-severe-than expected 7.6% with some help from its programs for the elderly.