Someone forgot to tell stock funds there's no 'rotation'
There's no Great Rotation, but inflows into stock funds continue:
Lipper reported $5.3 billion inflows into stock mutual fund and exchange-traded funds (ETFs) this week — but there was also $4.56 billion in inflows into taxable bond funds. However, much of that cash went into high yield funds, which has in fact seen large outflows in June. The loser was money market funds, which saw outflows of $12.68 billion.
(Read more: Great rotation still a 'long way' off)
This makes some sense, since we know June saw large outflows from bond funds (including high yields), and much of the money went into money market funds. That money is now finding its way into stock and high yield funds.
Halfway on earnings: with 52 percent of the S&P 500 reporting, earnings growth stands at 4.5 percent, with revenue growth at minus 0.5 percent. Third quarter growth is holding up reasonably well: expectations are for 5.1 percent versus 6 percent expected on July 1; this is also contributing to holding up stocks.
These tidbits are what I like: a) Consumer Products, which sells products outside of Starbucks stores, has higher margins and is now 13 percent of cash flow; b) China is growing fast, and is now 10 percent of Starbucks' profits, and c) creative partnerships are expanding. Watch for an initiative with Duracell for wireless charging stations, and with Danone for yogurt (Evolution Fresh).
2) Construction and do-it-yourself home improvement business strong. Stanley Black & Decker also had strong numbers; the Construction & do it yourself (DIY) segment was strong, as was Industrial. The company also forecast higher organic sales growth.
3) China has ordered over 1,400 companies in 19 sectors to reduce excess output this year, as part of the government's strategy of re-balancing the economy. If you have any doubt that China is not a free-market enterprise economy, consider the above headline. That's right: they are ordering companies to close factories because the government perceives there is too much production.
4) Who pays the most commissions on Wall Street? I was talking on air with my colleague Maria Bartiromo last night about the SAC indictment, noting that stock traders are concerned because it is widely believed that SAC is some three to five percent of the overall volume at the NYSE, and is also one of the largest payers of commission on the Street. Any cutback in their trading is also likely to affect traders as well.
I don't have hard numbers on commission payers, but a brief check of traders indicates that most believe Fidelity and Wellington are likely the two biggest payers on the Street; Vanguard is also a big payer. And SAC? Most believe that firm is in the top 10 and certainly the biggest hedge fund payer.
—By CNBC's Bob Pisani