Market outlook for Jan. 22, 2009: Down, as Microsoft laying off 5,000

Microsoft came out unexpectedly with their earnings a few minutes ago and they are down 8%. They also announced they are laying off 1,400 people today. The weaknesses in the Global economy is definitely a shock to investors. Revenues were down more than expected to 16 Billion. It looks like today will drive markets lower.

Also, just out, E-Bay is also down about 8% for its first loss.

Jobless Claims increased by 62,000 and were higher than expected raising the total Jobless Claims to 589,000. Housing Starts were even lower than expected, down 16%, including New Housing permits also down significantly.