Can’t hide a revenue miss

While EPS from corporate America continues to surprise to the upside (the beat the number game lives on), high profile revenue misses from IBM, TXN, GS and JNJ, joining BAC, C and JPM creates a more tenuous time for the market over the next few earnings weeks in the midst of the daily double dip debate. European stocks are also lower on earnings concerns but European bond markets are higher after successful bond auctions from Ireland, Spain and Greece. Greece in particular sold 3 month bills at a 4.05% yield vs 3.65% on May 20th but still below the 5% lending rate from the EU. Hungary though sold less 3 month bills than offered and the Forint is at a 15 month low vs the Euro. Ahead of Friday’s bank test release, 3 mo EU LIBOR and Euribor continue higher. The Shanghai index closed at a 3 week high on continued speculation that they will step back from their tightening policy. The Bank of Canada is expected to hike rates by 25 bps to .75%.

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