Data dumped a few inches of reality rain on the earnings plastic surgery laden beauty parade yesterday. Further positive "earnings" results failed to sustain a move higher in risky assets (equities). We seem to have reached a point where traders have become so saturated with high expectations (which are miles north of what the laggard "analysts" had projected) that even "good" numbers are greeted with a poor reaction.

Thus far today, on a hump day, the earnings reports have been a far more mixed bag with the biggest drag being Boeing after reporting chunky charges of $3.5bn due to delays in the unfortunately named 787 Dreamliner and 747-8 jumbo jets while Eli Lilly beat estimates. The big banks again have profited courtesy of the taxpayer giving them free money to play with as Wells Fargo and Morgan Stanley (despite a 94% drop in profits) both beating analysts dumb and dumber's (guess)timates. They'd have been closer using a Dart board.

In M&A chit chat GE and Comcast are said to be continuing discussions about a possible deal while US Bancorp is mulling over acquiring FBOP from the FDIC. And Geely's plans to buy Volvo from Ford are said to have stalled.

The data cupboard is bare today with just MBA weekly mortgage applications which printed a disappointing -13.7% on rising rates. The Fed's anecdotal 12 districts "Beige Book" is out this evening just after 7pm. After the bell we get Amgen (expected EPS $1.27) and eBay ($0.37).

Today's Market Moving Stories

• Overnight it was another disappointing session for stocks in Asia which posted small losses in line with developments in US equity markets. The performance in stocks is all the more disappointing given the continued upside surprises in US earnings. As of Tuesday, positive earnings surprises were running at 79% though the S&P500 has failed to make a break above 1100. The most obvious explanation for the disappointing performance of risk markets as a whole during earnings season is market positioning.
• GBP has been boosted this morning following the Minutes of the Bank of England October meeting. The Committee voted 9-0 to keep rates on hold and to keep Quantitative Easing (QE) at £175bn. On the whole, the Minutes were slightly more upbeat on the outlook for growth, but the MPC is keeping its powder dry on whether to increase QE further until revised forecasts have been presented in the November Quarterly Inflation Report. The Minutes have not been dovish enough to halt the short squeeze in GBP.