Stock markets around the globe are stable this morning as WTI crude oil tries to perform a balancing act at around $30 per barrel. News that Iran made its first post-sanction oil sale to Europe and that Iraq’s oil production hit record levels last month was like pouring water on any type of bullish rally from last week. Also adding to the concern about the global oil glut was a comment made by the chairman of Saudi Arabian Oil Company, who said the company can withstand low oil prices for “a long, long time.” He also noted that the company had not cut investment in new production projects. With the world’s number one oil producer seeming to be content riding out “lower for longer” prices, there’s not much hope that the supply glut will diminish anytime soon. There are also more signs that the rout in oil prices is doing major damage to the economies of oil revenue dependent U.S. states, adding to overall uneasiness about the economy. North Dakota just announced they may be forced to raid their “rainy day fund” to make up million of dollars in budget shortfalls due to declining oil activity. Other states feeling the pinch include Alaska, Louisiana and Oklahoma, all of whom are projecting budget deficits as oil revenues fizzle. As for today, the U.S. Federal Reserve begins their two day FOMC policy meeting, the first since raising interest rates in December. No policy changes are expected when they announce their decision tomorrow (Wednesday, February 27), but investors will be taking a close look at their rhetoric regarding U.S. growth prospects and the lack of inflation. From what I understand, the trade is currently giving the Fed 0% chance of a rate hike this meeting and just over a 50% chance that it could happen by the the September meeting. Outside of a rate adjustment, the trade will also be looking for any changes in the Fed’s language surrounding global economic risks, particularly slowdowns in China and other emerging markets, as well as the possible implications of depressed global currencies versus a strong U.S. dollar. Economic data will pick up a bit today with the S&P Case-Shiller Home Price Index, Consumer Confidence and Richmond Fed Manufacturing numbers all scheduled for release. It will also be an extremely busy day for earnings. Apple, the largest company in the world by market capitalization reports after the close. Analysts are expecting revenue to be slightly below expectations, which would be the first time the company has disappointed in six quarters. Warnings from Apple suppliers indicate the company is cutting iPhone output by as much as -30%, so investors are anxious to see what Apple has to say. Also of great interest will be how the company is fairing in China, especially since the Asian giant has become somewhat of a major economic “unknown” the past several months. Keep in mind earnings are also due from AT&T, Corning, Dupont, Johnson & Johnson, Lockheed Martin, Procter & Gamble, Sprint and 3M, along with over 80 other major corporations. I continue to be extremely cautious as earnings might surprise a bit to the downside…