Monday Morning Musings

The market put in another very solid week last week, with the SPX gaining +2.0% and the NDX surging +2.8%.

The tech sector is higher again this morning, following a merger in the software space with SAP acquiring Business Objects (BOBJ) for $6.8B in cash.

And GOOG is hitting $600 this morning, reaching my price target a little faster than I had expected. I still think the stock has good momentum, and could reach maybe $650 in the near-term if their earnings report looks good.

There was also a merger in the industrial space, with Textron (TXT) buying United Industrial (UIC) for $1.1 billion. So deals are still being done.

Asian markets were mostly higher, with China reaching new highs. Oil is down this morning, falling below $80. This is weighing on the energy complex. And bond yields are steady at 4.64%.

After 4 consecutive weeks of gains for the major indexes, I would not be surprised at all to see the markets take a breather this week, or at least see some choppy trading.