Market Opens Better Than Exepected After Intel Lowers Guidance

Last night, Intel (INTC) lowered its revenue guidance for Q4 by quite a bit. Also, Applied Materials (AMAT) gave a disappointing outlook as well. This pushed the futures lower, and spurred declines in Asian markets, especially in the tech sector, where many chip companies have operations in Asia.

This led most investors to expected a weak open for stocks in the U.S. But lo and behold, stocks opened higher, and the Dow was up +100 points in the first few minutes. Of course, volatility then set in, and the Dow has since given back those gains, and then rallied back again. It is how the market closes that counts, and we have a long day still.

With the markets bouncing, and Intel stock flat so far, it is reasonable to ask if the recent bad news is priced into stocks, at least for the short-term? When stocks (and the market) rally in the face of bad news, it is usually a good sign.

The financials remain weak, and Goldman Sachs (GS) and Morgan Stanley (MS) seem to go down every day. I'm not sure what these guys need to do to take the pressure off of their stock, but they need to do something.

The Yen is lower this morning, which should help take some pressure off of the market. The dollar is also a bit lower, which is helping commodities bounce. Oil is up near $58 after yesterday's big plunge.

The 10-year yield is higher at 3.77%. And the VIX is down -3% to 64.75.

I have not made any moves in portfolios today, long or short.