Monday, July 31, 2006

Back In The Saddle

Hope you had a good weekend. As for me, while I rarely get sick I caught something nasty this weekend and spent most of it in bed with a fever. Not a fun way to spend your time off.

Anyway, the market is opening on a slightly weak note. This shouldn't be surprising given last week's strong rally. The market greeted the soft GDP report with a cheer on Friday, but this week we have the key core CPE deflator report on inflation. So we'll see if the market has the same benign outlook for inflation.

The bond market doesn't seem too worried about inflation. The 10-year yield is still just below 5.0%. Natural gas is screaming higher over capacity concerns, and this is helping those stocks levered to natty gas.

Semis are also bucking the early weakness. SNDK is acquiring FLSH in the flash memory space. Also, AAPL is up nicely on an upgrade from BofA.

I'll be back with a roundup of the morning news.

long AAPL


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