Brian Sozzi Out With Monday Morning Note

Brian Sozzi of Wall Street Strategies is out with a research report and is discussing a variety of topics, including earnings, Europe, and jobs.

In his note, Sozzi writes, "U.S. investors, if they didn't get the alert on their Blackberries yesterday, awake to news that the EU is open to bank recaps (down the line, not today...remember this saga has stretched out for 19 months so where is the hurry, right?). To this interested observer, is this a signal that officials are readying for a Greek default? After all, a default for Greece would punish undercapitalized banks...so why not firm up their balance sheets beforehand. Note that Sarkozy did refrain from language this weekend that the EU mustn't let Greece "fail.""

Sozzi goes on to talk about earnings season, which starts with Alcoa (NYSE: AA) later this week. Sozzi writes that earnings are expected to rise 14% this quarter, although it was revised down from July.

He notes that the yield on ten year German debt is at five week highs, as worries about Europe continue to weigh on the strongest economy in the European Union.

He also discusses the September jobs report in his note. Despite the better than expected number (103,000 versus 60,000 estimate), the unemployment rate is still extremely high, at 9.1%. and U-6 actually rose to 16.5%, from 16.1%.