Fed's Kohn Says Pieces of Recovery Coming Into Place

The market is mixed this morning, after bouncing from early morning weakness. There have been a flurry of earnings reports last night and this morning, which have basically been a mixed bag in terms of positive and negative reactions.

There are too many earnings reports to cite in this space, but a few of the standouts include IBM, which posted solid earnings and gave strong guidance. It's stock is up slightly. Also, US Bancorp beat estimates, and that stock is bouncing nearly +8%. Broadcom (BRCM) gave good guidance also, but announced its offer to buy Emulex (ELX) for a 40% premium, which is weighing on shares of BRCM today.

CAT lowered guidance, hurting its stock today, and Northern Trust (NTRS) missed estimates by a wide margin, and that is likely helping push the financials lower so far.

Fed Vice Chairman Kohn stated that pieces of the economic recovery this year are falling into place, and that the view among Fed officials has improved in recent weeks. I think this statement was likely well thought out before it was released, and as such I am pleased to hear these remarks. I don't think he would have made them unless there were definitive signs to support the notion.

Asian markets were lower across the board overnight; the dollar is mixed today; oil is lower again, while gold is a bit firmer; the 10-year yield is down to 2.79%; and the VIX is flat at 39.0 after a huge spike up yesterday (but still below its 200-day average).

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