Who Needs To Wait For The Fed?

Despite the markets often marking time ahead of FOMC meetings, the market rallied strong out of the gate this morning. Not only has the SPX quickly recouped yesterday's losses, but it also matched its yearly highs (1326).

Of course, I would have preferred to see a quiet open, and for the market to build strength into the close. We are now set up for a potentially bearish development where the market could sell off after the Fed meeting today.

Oracle (ORCL) reported strong earnings last night, and that is what helped get the market going. The stock gapped +12% higher at the open, and took many Nasdaq stocks with it.

Bond yields continue to move lower, breaking below their recent lows (4.72%). The yield curve has now been inverted for several weeks, and is signaling the Fed is being too restrictive.

In other news and notes:

• BRCM's CFO announces his immediate retirement
• Airbus announces further A380 delays
• MAS announces lower earnings for 2006; housing weakness
• MSFT reaffirms Xbox live subs
• KMX beats earnings, raises guidance
• MS beats earnings by 38 cents; stock up
• ISE plans to list foreign currency options

long ISE, MSFT