Strong Earnings Reports Lift The Market
The market is getting a nice boost in early trading after several companies reported stronger than expected earnings last night and this morning.
Big companies like Intel (INTC), Yahoo (YHOO), Coca-Cola (KO), Abbot Labs (ABT), CSX, UTX, etc. all beat consensus expectations for earnings. This has given the market a boost, and helped the Nasdaq pop more than +1.0% so far.
Earnings estimates have been continually trimmed in recent weeks, such that expectations were running very low as companies began to report. Hopefully, today's action is a foreshadowing of more good things to come.
Actual earnings don't have to be all that good to beat subdued expectations, which means that more days of reporting like we have just seen could result in additional upside for stocks.
Asian markets were mostly lower overnight, led by a -1.8% plunge in India after the government moved to limit foreign investment. Japan and S. Korea were also lower.
Bond yields are lower this morning, on more benign inflation data, with the 10-year at 4.59%. And oil is roughly flat at $87.60 after several days of hitting record levels. The run in oil has been breathtaking, and while most people are asking how high is high, I think it is unsustainable in the near-term.
long INTC, UTX