The S&P 500 would be doing OK if it weren't for the total number and performance of financial stocks in the index.

Some 60% of the companies in the S&P that have reported fourth-quarter profits have beat estimates. But the companies that missed, mostly financial firms, have missed by so much, that it drags down the average profit of the pool overall.

According to the Associated Press, "Losses from financial players like Citigroup Inc., Bear Stearns Cos., and Merrill Lynch & Co. wiped about $61 billion from the S&P 500's overall profit during the fourth quarter."

In an odd way, this is good news. It means that the industries outside the financial sector are holding up relatively well. That indicates that employment in these parts of the economy may end up in relatively good shape. Capital spending may not be hurt as badly as some Wall Street analysts fear.

If much of the damage to the markets and corporate America stays isolated to the financials, the country could avoid a recession.

Douglas A. McIntyre is an editor at 247wallst.com.