Market Gets More Good News From Unlikely Housing Sector

The market opened relatively flat, but then got a big boost from better than expected housing data. New home sales rose +16.2% last month, the biggest jump in 14 years. While this number may be a one-off, it is still a good sign that the housing market is well into its bottoming process, and should be less of a drag on the economy going forward.

On the earnings front, Network Appliance (NTAP) warned that it will miss estimates, and its stock gapped down -12%.

Greenspan's comments yesterday about a potential bubble in China weighed on the market late in the day, but can you blame him. The Shanghai index is up +180% in the last year. Do you remember what happened the last time we say an index rise that much in such a short period?

Despite his comments, Asian markets were only slightly lower overnight. Bond yields are still rising, with the 10-year at 4.89%. And oil is down a bit to $65.55.