UPS, traditionally considered one of the legacy bellwether, came out with earnings. And they were ugly. The company missed both the top and bottom line, with the revenue coming at $13.35 billion, below expectations of $13.7 billion, and EPS at $1.15 on expectations of $1.17. This merely confirms what those who did not have their head in the sand in Q2 knew all along: without Europe, global trade stalls every time. But it was the outlook cut that was the cherry on top: "The company’s performance was mixed during the second quarter,” said Kurt Kuehn, UPS’s chief financial officer. "The results in the U.S. Domestic and Supply Chain and Freight segments were partially offset by the weakness in International. “As we look toward the second half of the year, customers are more concerned as greater uncertainty exists. Additionally, economic growth expectations have come down,” Kuehn continued." China bull take note: "Revenue was $3 billion as the segment remains under pressure due to weaker global economies and reductions in exports from Asia." Going back to Kuehn: "Consequently, we are reducing our guidance for 2012 diluted earnings per share to a range of $4.50 to $4.70, an increase of 3%-to-8% over 2011 adjusted results.” The firm's previous guidance was $4.75-$5.00, with sellside consensus of $4.82. Somehow we fail to see how the Q3 and Q4 renaissance, which is so critical to meet the S&P target of over 100 in earnings, will happen. Actually scratch that: it won't. Expect reality to slam stocks head on some time in Q3 as the realization that the air out of the US corporate juggernaut has come out, courtesy of a sliding EUR and surging USD. Or at least until the Chairman has something to say about it.