Mae West said, “Too much of a good thing is never enough.” For the financial markets that’s just not true, however. The markets are prone to swing to excess and then to painfully retrace the extreme end of the swing. You can see it happening now with interest rates and the bond market.
Netflix (NFLX) shares were down 1.24% during the day as investors and traders seemed to be positioning themselves for an earnings miss. But the stock took off in after-hours trading, climbing by 6.8%, on the back of very modest earnings beat for the first quarter and upside guidance for the second quarter. I think that’s a good sign for the market’s performance as earnings season builds momentum.
