With 9% of S&P 500 companies reporting earnings, the equity market was relatively quiet as trading volumes remain low. Equities were flat on the day, while Treasury yields closed slightly lower.
While U.S. investors can’t get enough stocks, foreign investors have dumped $250 billion in U.S. equities over the past twelve months. Foreign central banks have been net sellers of U.S. Treasury bonds, which will further reduce World Dollar Liquidity, as large U.S. banks continue to buy U.S. Treasury bonds.
With 80% of S&P 500 companies under their blackout period, it’s now up to the Bears to take hold of this market as earnings roll in over the next couple weeks.