Opening Look: Nice Tone Early

The market opened with a slight upside bias. Retail sales came out this morning, and were mostly a mixed back. The retail index of stocks is lower, though, mostly due to Target (TGT) giving a disappointing outlook.

The market is searching for signs of economic strength to signal that we will avoid recession. To this end, you want to see a slight uptick in the 10-year yield. Today, it is again touching the underside of 4.00%. A break above this level would signal that the recent downtrend in yields is due for a breather.

The Bank of England decided to cut its lending rate 25 basis points. This follows yesterday's rate cut by the Bank of Canada. So global central banks are beginning to increase liquidity just like the Fed. I still think we need 50 basis points next week. If the Fed knows that they will need to cut more than that eventually, just get out ahead of the curve for once.

Asian markets were up across the board again overnight, while the Yen is a bit lower again. Nice. Oil is trading back above $88, and this is helping most of the energy stocks. And GOOG is back above $700. Not that that means anything.

I would not read too much into today's action. Tomorrow's jobs report will likely move the market more, and next Tuesday's Fed meeting should be the catalyst for a bigger move.

long GOOG