Positive Earnings Reports Roll In

The market reversed itself from yesterday's lows to help the S&P finish the session in positive territory. That buying interest has spilled over into today's session, with the major indexes all in positive territory so far.

Earnings reports have generally been positive so far, even thought some stocks that have reported strong earnings have seen their shares selloff on the news. Goldman Sachs (GS) and IBM both topped estimates, but their stocks are lower this morning. Ditto for the likes of Coca-Cola (KO) and JNJ. In the industrials sector, Eaton (ETN) and Illinois Tool (ITW) reported strong earnings and their stocks are actually higher on the reports.

Its really all about earnings right now, although there are other events moving markets. Europe's markets were higher this morning following news that Greece saw strong demand for its 2 billion euro auction of 3-month bills. Asian markets were mixed overnight.

The dollar is higher today, but commodities are rallying anway. Oil is higher near $83, while gold has bounced back above the $1140 level.

The 10-year yield is higher to 3.81%; and the VIX is -5.6% lower to 16.38 after a big negative reversal yesterday.

Trading comment: While the markets are bouncing, I still don't think that the full extent of the pullback was felt in just one trading session (Friday). I have not put cash to work yet, and am patiently watching for stocks that report strong earnings yet selloff anyway as good candidates to add to.

long IBM


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