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Starbucks, Pfizer, and Merck headline today's earnings reports as earnings season continues, but fewer companies are beating earnings estimates, that those that do aren't being rewarded for their achievement. Maybe that's because companies have lowered estimates (again) to make it easier to clear the bar. The bottom line isn't where the important data lies; it's the top line revenue numbers, and the count of companies beating that number is declining. Markets have been holding up, despite this phenomenon, but as we move into August, earnings numbers will go behind us, and market sentiment is very bullish on an ever-extended market above the moving averages. So a 3- to 5-percent correction this month would not be a surprise.

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