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-- Stocks were under pressure yesterday as President Obama called for 4 trillion dollars in spending cuts and tax increases. Positive notes from the beige book on economic growth and declining unemployment helped stocks rally into the close.

While investors turn their focus to the four S&P stocks, including

Google

(GOOG) - Get Alphabet Inc. Class C Report

, set to report earnings after the close, it is the weakness overseas pushing U.S. futures lower.

The Nikkei was down 0.9%, before a late rally on news of a better-than-forecast profit outlook from

Toshiba

sent stocks to a positive close.

European markets are down on concerns that Greece and Portugal will restrcuture their debt, causing bonds to fall, while pushing yields to record levels. Investors worry that a Greek restructuring of debt could result in a 50 to 70% haircut.

The Russian market closed down nearly 1% as four days of selling in copper and nickel lead mining stocks lower.

The U.S. dollar index hits 16-month lows before rallying back above the important $75 level, causing silver to rally 1% while gold remains flat.

Silver Wheaton

(SLW)

should be in play today with silver still near highs.

Defense stocks like

Lockheed Martin

(LMT) - Get Lockheed Martin Corporation (LMT) Report

and

Northrop Grumman

(NOC) - Get Northrop Grumman Corporation Report

in addition to big pharmaceutical stocks like

Teva Pharmaceutical

(TEVA) - Get Teva Pharmaceutical Industries Limited Sponsored ADR Report

,

Eli Lilly

(LLY) - Get Eli Lilly and Company (LLY) Report

and

Abbott Laboratories

(ABT) - Get Abbott Laboratories Report

seem most affected by the Obama deficit plan.

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

downgrades the financial sector to "neutral" from "overweight" --

JPMorgan

TheStreet Recommends

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

,

Bank of America

(BAC) - Get Bank of America Corp Report

and

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

are all lower before the open.

Chinese reverse merger stocks continue to be a hot-spot for investors and regulators, as

Interactive Brokers

raised margin requirements on Chinese reverse mergers to 100%. Some of the stocks on the list include:

China Agritech

(CAGC)

, down 45% year-to-date,

China Integrated Energy

(CBEH)

, down 74% year-to-date,

China-Biotics

(CHBT)

, down almost 49% year-to-date,

China Sky One Medical

(CSKI)

, down 56% year-to-date and

China Shen Zhou Mining and Resources

(SHZ)

down almost 26% year-to-date.

These Chinese reverse merger stocks in aggregate have plummeted 75% for the year, while "legitimate" larger cap Chinese stocks like

Baidu

(BIDU) - Get Baidu, Inc. Sponsored ADR Class A Report

,

Sina

(SINA) - Get SINA Corp. Report

and

Sohu

(SOHU) - Get Sohu.com Limited Sponsored ADR Report

are up 46% in 2011.

Disclosures: Jordan Kimmel is long JO, JVA, RES, IDT, SLW, MCZ, SRZ, SMTC, ACAD, REED, GRRF, NVMI, FFHL, COOL, WSTL, ROYL, TORM, SCLN, BSQR, ASYS and CROX

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.