More Outperformance For Growth Stocks

Yesterday was another solid day for growth investors. The Nasdaq outperformed the SPX again, as money flowed out of the cyclical and commodity complex and into larger-cap growth stocks. This is a theme I believe has legs.

The market is higher again at the open. Energy stocks are getting a little bounce after the pounding they have taken. Biotechs are also getting a big bounce after DNA reported solid results.

Bond yields are drifting higher again, with the 10-year yield climbing to 4.71%. This is above the December highs, with the next area of high ground last October's highs near 4.85%. The Bank of England raised rates by 25 bps last night to 5.25%, citing wage inflation as a concern.

In other news and notes:

• Asian markets lower overnight
• WSJ reports EOP may be in play for higher bid
• THQI guides Q3 EPS above consensus
• INFY beats by 2 cents; stock higher
• MA profiled in IBD's New America
• CSCO claims AAPL infringed on iPhone trademark
• Stifel raises estimates for JSDA
• ENER is top pick of Jeffries for 2007
• EBAY buys StubHub for $310 million
• Goldman raises Q4 estimates for GOOG
• Punk Ziegel raises GS target to $242
• BEAV wins 9 orders for over $200 million
• COP reports weak reserve replacements

long AAPL, BEAV, GS, GOOG