Friday, October 12, 2007

Big Bounce For The Nasdaq

After yesterday's heavy selling, I think most thought the market would be weak again at the open. Asian markets were lower across the board overnight, as profit taking there set in following our selloff.

But the core PPI came out below consensus this morning (+2.0% yr/yr), and the retails sales report was above expectations. This coupled with a buyout rumor of ORCL for BEAS brought out the buyers.

The NDX is up over +1.1% in early trading, quite a surprise. I know its still very early in the day, so we'll have to see if selling pressure shows up again in the afternoon session. But its a nice bounce, if for no other reason than an opportunity to lighten up if you need to.

Bond yields are steady, with the 10-year yield around 4.66%. And oil is pretty flat also, hugging the $83 level.

Semis and biotechs are up the most so far, as a group. While homebuilders are again lagging.


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