Govt. Threw A Wet Blanket On Yesterday's Rally

Yesterday was shaping up to be a solid day before the DOE announced their intention to double the strategic petroleum reserve. That caused oil to spike higher, touching $55, and taking the steam out of the building rally.

The markets still finished positive on the day, but the Nasdaq gave back most of its gains. The 10-year yield also rose, and is now at 4.80%. This is close to the October highs of 4.85%, where we could see some resistance come into play.

This morning, the markets are getting another bounce on the heels of some good earnings reports. YHOO talked about its new Panama search algorithm, which will go live on Feb. 5th. YHOO has been lagging in the Internet space, so this is a welcome development. But I still think it is going to be hard for them to catch up to GOOG.

In other news and notes:

• Asian markets up overnight
• CTXS spikes +8% on earnings
• APD beats estimates, raises guidance; stock gaps up
• GLW reports solid earnings; stock +10%
• Goldman downgrades YHOO to Neutral
• TWP says Macau gaming has been strong in Q4
• ROK beats by 6 cents; stock lower
• QLGC also reports solid earnings; stock lower
• PWR raises Q4 guidance
• AMD reports weaker results than expected
• BRCM finishes financial restatement ($2.2 bln)
• CLZR gaps lower on earnings miss

long GOOG