Netflixshares gave up as much as 5% in after-hours action following the online video-rental company’s quarterly report and outlook. Netflix took a hit after the company gave a second-quarter earnings forecast of between 93 cents and $1.15 a share, while analysts had forecast earnings of $1.19 a share.

Netflix gave a revenue outlook of $778 million to $798 million, which exceeded analysts’ forecasts for sales of $763 million.

Netflix also reported a first-quarter profit of $1.11 a share on $719 million in sales, topping analysts estimates for earnings of $1.07 a share. (MarketWatch)

Doug Kass on similarities with 2008.

“It is clear to this observer that the U.S. economy’s forward momentum peaked in February as first-quarter 2011 growth, expected to be +3.5% 90 days ago, looks closer to +1.5% now. Most notably, higher costs for life’s necessities (food, gasoline, etc.) have begun to sap the purchasing power of an already vulnerable consumer. Meanwhile, home prices are exhibiting no signs of recovery and, arguably, have begun to experience a second dip. In contrast to cash-rich large corporations, small businesses continue to suffer, as evidenced by low readings in confidence surveys. Domestic loan growth is still weak and our local and state governments are preparing for European-style austerity (along with the implementation of higher marginal tax rates). Over there (in Europe), central banks are tightening, and austerity measures are being implemented. In Japan, the natural disaster has created dislocations and a material slowdown in growth. The Middle East remains a powder keg and a risk to worldwide growth. And even in China, growth is decelerating under the pressure of a series of tightenings aimed at lower inflation”. (Businessinsider)

Below, NDX day chart with the lowest volume of the year…

Is the worlds greatest investor and put writer loosing his golden shine?

“But no matter what Buffett says or does in Omaha, there is a growing realization that the old days have slipped by. Buffett and his partner, Charlie Munger, are aging, the questions about the future of the conglomerate are getting louder and people are recognizing, as they do, that all good things have to come to an end.

“The passage of time is hitting home. This year is the end of Berkshire as it used to be,” said Alice Schroeder, a former stock analyst who wrote what many view as the definitive biography of Buffett.

“It will never be the same. Even if people think Buffett’s not going to address all these issues and the questions won’t be as tough as they should be, Berkshire as it used to be is over,” Schroeder said. (Reueters)

http://www.reuters.com/article/2011/04/25/us-buffett-idUSTRE73O2BH20110425

Here we go again. Barrick is supposedly bidding for Equinox, topping the Chinese bid. The saga is not over. Remember Equinox tried buying Lundin Mining, but has pulled that bid. Will we see a new bid for Lundin, considering the hot commodities space?

“Equinox shares jumped nearly 12 percent in Toronto after the announcement on Monday, signaling that some are expecting a counter-bid from the Chinese metals powerhouse. Barrick shares shed 5 percent, suggesting not all investors agree with the move to diversify.

Already the world’s largest gold miner, Barrick will double its position in copper with the acquisition. Prices for the industrial metal have risen more than sevenfold in the past eight years as supplies lag the surging needs ofChina and other developing economies.

Equinox, a global miner listed in Toronto and Sydney, owns the Lumwana copper mine in the rich Zambian copper belt and most of the Jabal Sayid project in Saudi Arabia.”

http://www.reuters.com/article/2011/04/25/us-equinox-barrick-idUSTRE73O22M20110425

Silver is making a possibly huge reversal today. Also gold and oil are both reversing in a volatile session. This kind of great volatility, will definitely hurt the short gamma players, and further increase volatility. Silver almost touched 50 today, and is now trading 45,75. Vvol (volatility of volatility) is huge. Leveraged hedge funds, that all chase the same alpha are all puking now.

Last chart is showing the day chart of Silver. This is one of the biggest shooting stars we have ever seen. This could be a big reversal for silver prices. Maybe the last desperate alpha chaser are all aboard now.

What goes up, must come down. The law of nature will once again prevail. Us economy will be surpassed by the Chinese economy sooner than later. According to IMF China will surpass the American economy in 2016. This trend is hard to fight, irrespective of all stimulus packages.

“Under PPP, the Chinese economy will expand from $11.2 trillion this year to $19 trillion in 2016. Meanwhile the size of the U.S. economy will rise from $15.2 trillion to $18.8 trillion. That would take America’s share of the world output down to 17.7%, the lowest in modern times. China’s would reach 18%, and rising.

Just 10 years ago, the U.S. economy was three times the size of China’s.” (Market Watch)

http://www.marketwatch.com/story/imf-bombshell-age-of-america-about-to-end-2011-04-25

“I could join the dealers and say the 10-year’s not going to go to 4 percent, so what am I left with?” Gross said in a telephone interview April 20. “I’m left with an under-yielding, less-than-inflation security. I have better choices. As a firm we’re not going to put up with it.” (Bloomberg)

http://www.businessweek.com/news/2011-04-25/bill-gross-battles-dealers-on-outlook-as-treasuries-gain.html

We have written about the increasing inequality aspects of the American society before. Below are two self explanatory charts. We can see how the middle class has barely changed, while the top earners have pretty much doubled. The second chart shows the trend historically. The growing inequalities could potentially harm the mighty Us, in a fashion, none of the elite leaders think is possible. For the time being, people are still enjoying watching America has got talent and drinking their soft drink, but this might change sooner than later.

Further great reading by Emanuel Todd and his analyses of the American society and its diminishing power.