The market had a nice run-up ahead of earnings season and driven by some preliminary positive responses. (GS and INTC come to mind, followed not long afterwards by CAT). Below we have extracted a chart from a premium bulletin sent out several days ago. By slicing the earnings reports and summarizing them we can get a better picture of the broad success large cap stocks have posted this quarter. The red line highlights the ratio of companies that beat their earnings estimate versus those that missed (companies reporting in-line are excluded). At 5.35 this ratio is the highest since the second quarter of 2004.