Stocks Bounce, including Financials, On Solid Earnings Reports

The market is getting a nice bounce in early trading on the heels of some better-than-expected earnings reports.

IBM topped estimates last night, and in rare move, the company also raised earnings guidance for 2009. This is a strong showing for the tech giant, and its stock is up by more than 8% today.

One of yesterday's big losers, Northern Trust (NTRS), also topped estimates by a wide margin. The stock has reversed all of yesterday's decline, and it up by +23%. This is helping to lift other financial services stocks as well.

United Tech (UTX) also topped expectations, but its stock is trading lower so far.

The dollar is lower today, while the Yen is much higher. I have talked about this before, and bulls want to see the Yen move lower as a rising Yen highlights global investors covering their carry-trade and taking less risk.

The lower dollar is helping oil and other commodities bounce today. The 10-year yield is higher, near 2.45%. And the VIX is down -8%, back below its 50-day average.

Trading comment: As I finish this post, the market is giving back its early gains. This is another example of why I am always leery of strong market opens. There is still a lot of time left in today's trading session, but given how far the market has pulled back in the last two weeks, I still believe we are setting up for a relief rally.