But don't let me rain on anyone's parade. Asian markets were up across the board overnight, following the strong rally here yesterday. But Europe is lower again this morning, with Spain down another -3%.
In earnings news, there were a handful of companies reporting better than expected earnings. Stocks moving higher after reporting include: PNC, SYK, STX, HAL, and ISRG. IBM, INTC, and BLK also topped estimates but their stocks are lower today. I have not seen any notable stocks that are down a lot on earnings.
On the M&A front, SXCI said it will buy CHSI and its stock is up 8% on the news. Consolidation continues in the PBM industry.
The dollar is higher this morning vs. the euro, which is weighing on commodities. Gold prices are lower near $1644. Silver and copper prices are lower also. And oil prices have pulled back to $103.
The 10-year yield continues to struggle with that 2.00% level, currently at 1.98%. And the VIX is up 2% this morning after bouncing off its 50-day support yesterday (18.95).
Trading comment: Yesterday's action took the S&P 500 back above its 50-day average. I think a couple of closes above that level puts the bulls back in charge of the tape. I would also like to see a follow-through rally with some volume accompanying it to show me there is some conviction. If the SPX fades back below the 50-day, then we will be back in correction mode. The news out of Europe remains troubling, and I am trying to be mindful for the potential of another flare up like we had last summer with Greece. But the market continues to climb the proverbial wall of worry.
KAM Advisors has long positions in HAL, IBM, and SXCI
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