Surprising Strength At IBM Boosts Market
I don't like to see these big up opens in the market, but I did like the news out of IBM. The company said that results would top expectations, with earnings rising +24%. The firms said strength was driven by Asia, Europe, and Emerging Markets.
This helped give a boost to the tech market, with the Nazz leading the way so far today. Ag stocks are also on fire.
The market is pricing in bigger rate cuts, and this is driving the dollar lower today. I admit I was worried when I saw the Yen up, but I think today its being driven interest rates here in the U.S.
The weakness in the dollar is pushing commodities higher, with gold hitting new highs and oil up to $93.75. This is helping give the energy stocks a boost.
Although we hear about the rate cuts last week, the fed funds futures are now pricing in a 42% chance of a 75 basis point cut. That would be huge.
The bond market doesn't seem too fazed, with the 10-year yield down a touch to 3.79%. We need some stimulus in a hurry.