(As of 7:15 am pacific)
Stocks are fighting for gains
this morning after two straight days of 100 pt. gains on the Dow. Earnings continue to depict market direction
with economic data continuing to come in positive. The tech sector is dragging on markets today
as tech giants IBM and Intel reported disappointing earnings after the bell
yesterday and Intel lowered its revenue outlook for next quarter. Shares are down 3-4% this morning. On a positive note, the housing recovery
continues to show signs of strengthening as today the Commerce Dept. reported
that new housing starts surged 15% in September while building permits for new
construction rose to a 4 yr. high. You
get the sense the market wants to rally on the strong housing numbers, but
earnings are holding markets back today.
In Europe, Moody’s held Spain’s credit rating one level above ‘junk’
bond status citing the ECB’s willingness to buy Spanish bonds making the credit
supposedly less risky. This much
anticipated news helped lift stocks and confidence in Europe with the euro
hitting a 1 month high. The US dollar is
down against most currencies while interest rates are slightly higher. Gold and oil are both up and the volatility
index is down. It could be a back and
forth day as investors weigh the positive housing data with not so positive
earnings reports today.
