Draghi Starts ECB Off With A Rate Cut

The market is higher in early trading after a surprise rate cut by the ECB. In Mario Draghi's first ECB meeting after taking over from Trichet, the ECB trimmed rates 25 basis points to 1.25%. This has helped boost European markets, and even boost the euro a bit which is odd when you're cutting interest rates.

Pressure has continued to grow on Greece to abandon its referendum, which it looks likely that they will. But Greece's PM may have lost favor among party members and the vote of confidence later this week could prompt a change in leadership. The situation in Greece remains fluid.

In economic news here, the ISM Services Index came in a little below expectations at 52.9, but still above the 50 level that marks the line between expansion and contraction.

In corporate news, there were a few more earnings reports to trickle in, but there was also the same-store sales reports for retailers today that it driving some big moves in retail stocks. ANF is getting hit pretty hard. On the earnings plus side, see: ANR, QCOM, VRX, ATK. On the downside are K and RIG to highlight a couple.

Commodities are mostly higher again, with oil prices rising to $93.50 and gold prices topping $1765. Judging by the ETFs, copper looks lower today while silver is a tad higher.

The 10-year yield is a touch higher to 2.05%; and despite the gains this morning the VIX has remained stubbornly in positive territory hugging the 33 level.

Trading comment: No real change to my recent comments on the short-term outlook. The SPX still needs to get above its 200-day before real stock chasing begins. That key moving average is currently sitting near 1275. But the market could digest its recent run-up for a bit longer before staging another stab at higher levels. Greece and Europe remain a wildcard, but the longer it drags on the more likely it is that the market has simply priced it in and investors need to look beyond the current scenario. We are in the seasonally strongest part of the year for the market, and I still expect upcoming dips to be bought.

long SLV, VRX