When a stock is set to open down over $100 in reaction to earnings, people notice, even if that decline is coming off a base of $1,200.  That’s exactly the case this morning as shares of Alphabet (GOOGL) are on pace to have their most negative gap down in reaction to earnings since the company’s IPO in 2004.  For more on how GOOGL tends to perform following negative reactions to earnings, please check out our Chart of the Day.

Even if it is one of the largest companies in the world, there’s a lot more to the economy than GOOGL, and this morning we are seeing that.  Since the close yesterday, nearly 150 companies have reported earnings and 68% of those exceeded EPS forecasts, while a pretty impressive 60% have exceeded revenue forecasts.

We’ve just published today’s Morning Lineup featuring all the news and market indicators you need to know ahead of the trading day.  To view the full Morning Lineup, start a two-week free trial to Bespoke Premium.

In yesterday’s Closer report, we highlighted the fact that a number of secondary indices/sectors that outperformed ahead of the December lows did not make new highs yesterday.  Another indicator that hasn’t been keeping up with the equity market is high yield spreads.  As shown in the chart below where we have plotted high yield spreads on an inverted basis, for well over a week now, we have seen stock prices make new highs but high yield spreads haven’t been keeping up. If the rally, is going to keep going, spreads will need to catch up.

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