(as of 7:10 AM PST)
Today's big story is yesterday. The markets were on fire, continuing Monday's closing rally. A big jump in the price of oil was one of the catalysts and some good profit reports added vitality, but it's hard to pinpoint what made investors herd into stocks as the day wore on. There may yet be some juice in this surprise rally with an initial down market giving way to a mixed set of indexes. Usually this type of scenario gives way to profit taking as investors cash in. Expect to see downward pressure as the day wears on. The ISM services index, a key measure of economic activity was solidly above expectations showing that the US economic recovery is still on track. Solid profit reports and merger activity are adding strength. Oil is down about 4%, giving back a large part of yesterday's gain while gold is recovering from prior losses. International markets are mixed with Europe and parts of Asia showing strength. China's Shanghai index is down as its massive economy struggles with a manufacturing slowdown.
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