Intel Ignites The Bulls

The market is getting a huge boost in early trading on the heels of several better than expected earnings reports. After GE stunk things up, I think expectations got extremely low for the rest of the companies reports. I am a little guilty of that myself. But such is not the case today.

Intel (INTC) started it off last night by topping estimates and giving solid guidance. Then this morning we got another handful of good reports, from the likes of Wells Fargo (WFC), JPMorgan (JPM), Coca-Cola (KO), and CSX.

So all of the sectors are up, but semis are up the most, +4.5% so far. Energy stocks are also higher, as oil is nearing the $115 level. Unbelievable. Gold is also surging as the dollar is weak today vs. the Euro mostly, and the Yen a little.

Ag stocks are also on fire. Monsanto (MON) had its estimates raised and price target lifted to $140 at Goldman Sachs (GS).

The CPI matched expectations this morning, and the bond market is breathing a sigh of relief it wasn't higher. The 10-year yield is up to 3.61%, just above its 50-day. And the VIX is plunging -8% to its lowest level this year (21.08).

The S&P 500 is now back above its 50-day average. Yesterday, the markets rallied on increasing volume, a sign of accumulation. These are both bullish signs. I would like to see the markets hang on to these gains today, and for volume to rise again.

But the strong reports from INTC, JPM, WFC, etc. are a nice shot in the arm. And the plunging VIX has bullish implications as well. I feel more constructive on the market this morning.

long GS, MON