The earnings flow is now in full swing and Netflix (NFLX) is the early leader for the title of the biggest flop as the stock is down over 10% after missing subscriber growth forecasts. In other earnings news, of the roughly 50 companies that have reported since the close yesterday, two-thirds have exceeded EPS forecasts while slightly more than half have managed to top revenues estimates. This morning’s economic slate kicks off at 8:30 with Jobless Claims and the Philly Fed report while Leading Indicators will be released at 10:00 am.
Read today’s Morning Lineup to get caught up on news and stock-specific events ahead of the trading day and a further discussion of recent earnings reports from around the world.
It may sound hard to believe given the recent gains in the equity market, but over the last 12-months, the S&P 500 and long-term Treasuries have had nearly identical returns. The chart below os from page two of our Morning Lineup and shows the relative strength of the S&P 500 versus the US Long Term Treasury future. When the line is rising, it indicates that stocks are outperforming bonds, while a falling line indicates periods where bonds outperformed stocks. With the line currently right at 0.0 through yesterday’s close, after the last twelve months, it has been a dead heat between the two.
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