Markets are being hit with a double whammy this morning: multi-year high in Treasury yields, and earnings. With 20% of the S & P reporting, earnings overall have been better than feared. But there have been several disappointments in the past twelve hours. American Express is a good example of investors focusing on one issue: loan loss provisions. Earnings and revenues were higher than expected. Spending was strong (consumer and commercial-billed business growing 22% and 20% year-over-year), new card growth (3.3 million) was good. Guidance for 2022 guidance was maintained on revenue but increased on EPS. "We have not seen changes in the spending behaviors of our customers, but we are mindful of the mixed signals in the broader economy and have plans in place to pivot should the operating environment change dramatically," Chief Executive Officer Stephen Squeri said in a statement. But AmEx set aside $778 million for potential future losses, nearly $200 million higher than expected. That set everyone thinking that spending would slow, and defaults would be higher. You would think luxury would be in great shape. "Revenge partying goes on!" Robert Ottenstein at Evercore ISI said in a note, commenting late last night on very strong earnings from French spirits maker Pernod Ricard. Pernod volumes were strong, and prices were higher. Much higher. In the U.S., Ottenstein quoted the company: "nothing in terms of a weaker underlying demand and there is absolutely no slowdown," highlighting still strong consumption. But other luxury brand names were not so effervescent. The events in Europe around the Russia invasion of Ukraine are weighing on sales. In Europe, Adidas warned, luxury goods makers Kering reported solid sales but noted its Gucci business was weaker than expected (China struggling as well), and L'Oreal's luxury business missed as the company noted lockdowns in China.