Thursday, March 22, 2007

Early Weakness After Motorola Slashes Guidance

The market is opening a bit soft, but not that much considering yesterday's surprising strength. I doubt there was anyone who thought the market could rally that much yesterday, let along had the conviction to get materially long ahead of it.

Motorola slashed its earnings forecast last night, blaming weakness on its handset business. This is taking a handful of tech related stocks down with it, but helping RIMM.

Asian markets were up nicely overnight, for a fourth straight session. European bourses also saw strong gains. And the Yen is lower again today versus the dollar, which helps.

Oil is rising though, now up over $61, which could be a big headwind. Also, the 10-year yield is up 4 basis points to 4.56%, but this is still below yesterday's highs.

I would like to see the market digest yesterday's gains. A couple of quiet sessions, with light volume pullbacks would be just the ticket for more gains into quarter-end.

I will be in meetings all morning, so have a good session--


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