Microsoft Carries The Day

The market is getting a big boost at the open from strong earnings out of Microsoft (MSFT). The tech behemoth blew out earnings and raised guidance for next quarter as well. I was suprised at how strong their numbers were, but I don't want to look a gift horse in the mouth.

Also, Countrywide (CFC) reported a larger than expected loss this morning, but it raised guidance for next quarter and said it expects to return to profitability. The financial sector breathed a huge sigh of relief on this news, and it helped lift the overall market.

One of our holdings, MEMC Electronics (WFR) also reported strong earnings and the stock has been up as much as +18% today. This is helping the semi index a bit, but this sector has really been lagging lately. If it reverses and gets stronger, that should really help the tech sector into year end.

Asian markets were up across the board overnight, on rumors of another interest rate cut in the U.S. Bond yields are up slightly, with the 10-year at 4.38%.

Oil is hitting more record highs, topping $91 today. So far, it is not hurting the overall market too much, but it is a headwind nonetheless. Last night on CNBC, top management from Tesoro (TSO) said that he thinks there is plenty of oil supply, and that it is really speculation that is keeping oil prices as high as they are. fwiw.

long MSFT, WFR