Microsoft Puts A Bid Under Tech Stocks

The market got a strong boost at the open after a handful of strong earnings reports last night.

Microsoft beat expectations, and also raised its guidance for the full year. This helped the stock pop to $35 before pulling back. Broadcom (BRCM) and MEMC Electronic (WFR) also reported solid results, and their stocks are higher.

These earnings reports helped push the Nasdaq nicely higher at the open, but the sellers predictably emerged, and the market has given back all of its gains. Hopefully we can mount another push higher into the close.

Asian markets rose sharply for a 3rd straight day, with Japan up +4.1% and Hong Kong spiking another +6.7%. And the Yen is lower again, which is nice to see.

Oil is back up over $90 this morning, which is helping the energy stocks rally. And gold hit a new record high today at $924.

The 10-year yield had a huge rally yesterday, and is steady this morning at 3.63%.

There was also talks yesterday about raising the conforming loan limits for Fannie and Freddie from its current $417,000 to as high as $725,000. The news helped the homebuilder stocks rally, and they are up again today. Look at a chart of the XHB to see what I'm talking about.

long WFR