Momentum From Fed Cut Carries Over For 2nd Day

Asian markets were up sharply overnight (+3 - 4%), and that helped push our futures higher at the open once again. The core CPI report came in in-line with expectations, which helped ease inflation concerns.

Crude oil stockpiles fell last week, and that is helping push oil prices above $82. But this too is not impeding the stock market's gains of late.

Morgan Stanley (MS) reported earnings this morning that were below expectations, but the overall strength in the financials helped support the stock price from falling.

Bond yields are moving higher, as a reflection of more economic strength coming down the road. The 10-year yield is at 4.55%. Also, 3-month LIBOR is moving lower in Europe, which should help ease more of the credit crunch concerns.

The market is quickly moving into overbought territory, but I think that the Fed rate cuts are meaningful. I put a lot of money to work yesterday, and would look to use future pullbacks as opportunities to get more fully invested.