Tuesday, September 11, 2007

Strong Bounce On Little News

The market is getting a nice bounce in early trading, although you know by now that I am often skeptical of strong market opens. I prefer to see a market that opens flattish and rallies into the close.

Wireless equipment maker Ericsson (ERIC) issued a strong forecast, and disk drive maker WDC also raised its guidance. So those are some positive developments that are helping the tech sector at the margin.

Goldman Sachs (GS) put in a big reversal yesterday, and helped lift the whole group. The brokers are up again this morning, by +1.4%. GS reports earnings tomorrow, and the whisper has gone from expecting a big miss to thinking that the company may report an upside surprise due to a bump in trading revenues on volatility. That would be something.

Asian markets were mostly higher overnight, save for China which plunged on inflation worries. Bond yields are steady, with the 10-year yield near 4.35%. And oil is down slightly, with little out of the OPEC meeting, trading near $77.

long GS


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