In the weeks ahead, earnings reports and second-quarter guidance should frame the markets.

I continue to approach the U.S. stock market with caution.

In all likelihood, the aforementioned EPS reports will determine how deep the current correction might be.

At the time of publication, Kass had no positions in securities mentioned.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.

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