Japan Surges Near 5-year Highs

Our markets are mixed in early trading with the Nasdaq pulling back after leading yesterday.  There is no economic data of note today but we do have another wave of earnings reports.

Asian markets were mostly higher overnight led by Japan.  Japan's markets had been closed for 2 days but surged upon reopening 3.6% above the 14,000 level for the first time since June 2008.  Also, the Reserve Bank of Australia surprised markets with a 25 basis point rate cut to 2.75%.

European indexes are also higher today.  German factory orders rose 2.2%.  Swiss unemployment held steady at 3.1%.  And EC commissioner Olli Rehn said its too soon to determine if Slovenia needs a bailout.

Among stocks moving after reporting earnings:

Stocks rising on earnings: FOSL, HCN, DTV, DFT, STE, MELI, NSM

Stocks falling on earnings: MR, PRGO, TAP, TDG, DISCA, FSLR

The dollar is roughly flat today but commodities are broadly lower.  Gold is down $20 to $1447.  Oil prices are weaker near $95.44.  Silver and copper prices are also weaker.

The 10-year yield is slightly higher to 1.78%.  And the VIX is only up a touch and still at very low absolute levels at 12.75.

Trading comment: This market is really relentless.  It does seem like in the short-term we are due for a bit of a pause, but other than that there are still no signs pointing to any change in character for the market.  Obviously the market can't continue like this indefinitely, but the question is what levels do we climb to before we get any correction of substance.  Certainly not worth sitting on the sidelines while so many stocks continue to perform well.  We are taking a closer look at DVA, which is an example of a stock that reported good earnings but has pulled back since.