Stocks Creep Higher As Companies Issue Mixed Guidance

The market was down a bit in early trading, but has since climbed back into positive territory. President Obama gave a speech last night on healthcare reform. I missed the speech, but the jist is that the size of the plan would be $900 billion over 10 years and funded with spending cuts and tax increases. Healthcare stocks are up so far, in-line with the market.

A few companies updated their earnings guidance last night, with mixed outlooks. Proctor & Gamble (PG) issued in-line guidance, and its stock is nicely higher; Texas Instruments (TXN) raised its third quarter guidance, while Monsanto (MON) lowered guidance for 2010 to $3.10-3.30 vs. consensus of $4.12. The news is pushing its stock -5.35% lower and weighing on the ag sector.

The dollar is lower again, helping boost oil and gold. Oil prices touched $72 after OPEC said that it would leave crude output levels unchanged, while the IEA raised its world oil demand for the third consecutive month.

Also, today's jobless claims numbers were generally better than expected.

European markets were mixed, despite the ECB leaving interest rates unchanged at 0.5%, and the FT reporting that UK housing prices rose for the second straight month in August. Asian markets were higher overnight.

The 10-year yield is lower to 3.41%, and there is another 30-year Treasury auction today. The VIX is -3.2% lower again today, falling to 23.55.

Trading comment: The VIX is getting to very low levels, and I think getting long volatility here offers a good hedge. I am buying a position in the volatility etf (VXX). Yesterday I added some trading long positions in STEC and WYNN. Also, long-time holding FWLT is breaking out today to its highest level since last November. The stair-step market marches on.

long FWLT, STEC, WYNN, VXX