Posted by Joseph Y. Calhoun, III

Earnings continue to come in generally better than expected:

Positive Surprises

• Texas Instruments
• Merck
• Southwest Airlines
• Caterpillar
• State Street
• Boston Scientific
• Coca Cola
• Freeport McMoran

Negative Surprises

• Lexmark
• Regions Financial
• Precision Castparts

So far, 76% of companies reporting have beaten expectations. Many of these companies are reporting revenue that is less than expected, but higher margins are allowing them to exceed the earnings expectations. Apple reports after the close and could be a catalyst tomorrow.