Monday Morning Musings
The markets are bouncing in early trading on some positive financial news. The WSJ reported that Wamu (WM) is close to getting a $5 billion capital infusion from private-equity firm TPG. This would be great news for that company, and banks and brokers are rallying on the news.
Also, Microsoft (MSFT) said Yahoo (YHOO) has 3 weeks to accept its offer. With no other bidders around, I think YHOO mgt. should suck it up and accept that it is likely the best offer they are going to see.
The dollar is rallying mostly against the Yen, and a little vs. the Euro. Surprisingly, despite the strong dollar, oil and gold are both rallying also. The 10-year yield is up a bit to 3.54%. And Asian markets were higher across the board overnight.
The strongest groups this morning are the energy stocks, including oil services stocks, agriculture and chemical stocks. Retail stocks are lagging.