More Benign Inflation Data

Yesterday was a very solid day, with rising volume making for a strong accumulation day. The market seems to still be in a good mood following yesterday's Fed comments. This mornings inflation data reinforced the moderate inflation view, and the markets are reacting positively.

The yield on the 10-year note fell yesterday, and is falling again today. This morning, it hit 4.77% before bouncing off its 20-day average.

Personal spending was also up nicely, despite the bears' call that consumers are on the cusp of reigning in there spending.

The markets also seem to be dealing with the recent spike in oil prices well also. Oil is up again this morning, above $58, which is helping the energy stocks. But it is not coming at the expense of the rest of the market. Homebuilders are up, retail is doing well, and semis are positive also.

In other news and notes:

• Asian markets strong overnight
• Monster Employment Index edges higher in January
• Mylan Labs beats by $0.08; guides FY07 above consensus
• Starwood Hotels beats by $0.19, ex items; guides above consensus
• Mobile TeleSystems profiled in New America section of IBD
• Pru, ThinkEquity raise GOOG target to $600
• Goldman raises GOOG target to $620
• Comcast announces 3-for-2 stock split
• CVS Corp beats by $0.01, revs in-line
• CIBC raises GILD target to $82
• Under Armour misses on bottom line, beats on top line
• Wachovia raises their Q1 ests for GS adn LEH
• Crocs tgt upped to $57 at Piper Jaffray
• Vornado bids $56 a share for Equity office, topping Blackstone
• Rite Aid reports 4.5% Same Store Sales increase for January
• Michael Dell return to CEO of DELL

long GILD, GOOG, GS