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NEW YORK ( -- Positive earnings from LVHM Louis Vuitton and Burberry help European markets rebound, with the Stoxx Index 600 up 0.5%. Here in the U.S., futures are positive as investors digest the Standard & Poor's downgrade of U.S. long-term sovereign credit outlook to negative from stable. The change means there is at least a 33% chance S&P will downgrade the country's long-term credit rating.

Markets initially sold off on the outlook downgrade, but rallied off lows after Moody's reaffirmed the United States AAA credit rating. The U.S. dollar rallied despite the news, while investors flocked to gold and silver for safety.

The Gold Miners ETF ( GDX) and silver mining stock, Silver Wheaton ( SLW) have been noticeably absent from the recent run up in the precious metals.

Texas Instruments ( TXN) adds pressure to the markets, down over 2 percent on lower revenue and profit guidance for the second quarter. The second largest U.S. chipmaker cited reduced demand from Japan and declining mobile-phone chip sales.

Investors will look to earnings from Goldman Sachs ( GS) and IBM ( IBM - Get Report) for positive momentum.

Yesterday's action gave investors an opportunity to identify relative strength in the markets. Shanda Interactive ( SNDA) was up 17% on news that its subsidiary, Cloudary Corp. will file for an IPO. The early strength in Shanda provided a catalyst for other leading Chinese stocks.

Chinese internet stocks continue to post large gains lead by Sina ( SINA), Youku ( YOKU), China Dangdang ( DANG) and Qihoo 360 Technology ( OIHU) all up over 8%, while Sohu ( SOHU) and Baidu ( BIDU - Get Report) lagged their counterparts. Investors in this group have another company to follow starting Thursday with the IPO of 21Vianet Group ( VNET), the largest data center service provider in China.

Other foreign outperformers to consider include MercadoLibre ( MELI), up 1.44%, Perfect World ( PWRD), up 1.83% and NetEase ( NTES - Get Report), up 1.38%.

Aside from the Chinese internet stocks, recent leaders extended their outperformance, helping to push markets off their lows of the day as illustrated by the performance of OpenTable ( OPEN), up 2.5% on the day.

Casino stocks made strong moves mid-day with Wynn Resorts ( WYNN) making new 52-week highs and Las Vegas Sands ( LVS) closing up 3.67% on the day.

Lululemon Athletica ( LULU) is up 3.84% and Under Armour ( UA) both finished positive on the day as investors respond to weakness in oil.

Apple ( AAPL - Get Report) found support at $320 with bargain hunters looking to buy the stock ahead of Wednesday earnings, after the close. Will this spark a lagging technology sector?

Disclosures: Scott Redler is long WEBM, HAUP, MGM, CYD, POT, REDF, SOHU, BIDU, LVS, OIH, GLD, AAPL and short SPY and SLV

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.