Thursday, July 24, 2008

Tech Companies Surprise With Strong Earnings

The market is pulling back this morning, after a nice 2-day bounce. Existing home sales came in below consensus estimates, which isn't helping things. June home sales slipped -2.6%.

There were more good earnings reports last night and this morning. MMM topped analyst expectations, and in the tech space Qualcomm (QCOM), Amazon (AMZN), and Baidu (BIDU) all reported strong results and their stocks are all up in excess of +15% this morning.

Asian markets were higher overnight, following the drop in oil prices yesterday. Today, oil is up slightly, but the huge plunge in natural gas is weighing on oil and the energy complex as a whole. The drop in natural gas over the last two weeks has been extreme, to say the least. I am adding to my long exposure to some of these stocks as they are very oversold.

The dollar is mixed, after a strong 2-day bounce. The 10-year yield is lower at 4.06%. The ARMS Index is high at 1.83, signifying heavy selling pressure. And the put/call ratio is at 0.95.


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