TGIF

The market got a little bounce at the open, but it soon faded. There were a couple of encouraging economic reports before the open, and also some positive news on the earnings front.

The core PPI came in below expectations, easing inflation fears. PPI was unchanged in February, pushing the year/year rate down to +1.7%. Also, the Trade Defecit unexpectedly narrowed last month. But despite these two reports, bond yields are drifting slightly higher, with the 10-year T-Note at 4.75%.

Merck raised its earnings guidance this morning, and the stock is gapping +7% higher. McDonald's also raised its Q1 guidance, and GE matched estimates when it reported this morning. So earnings season seems to be off to a solid start, and I would not be surprised to see overall profit growth come in ahead of estimates.

Asian markets were lower again in overnight trading, and the dollar is lower today vs. both the Yen and the Euro. Oil is steady at $63.75, after yesterday's big spike. With everyone already forecasting higher oil and gas prices for the summer, you have to ask yourself, is it priced in?