The euro is getting a bounce for a 2nd day today on the rumors that the IMF is looking to expand its lending capacity by $1 trillion. That's a pretty big figure, and it seems to be helping sentiment in Euroland. But I worry that folks could be getting too complacent with the sovereign debt issues.
Earnings reports are starting to come out. On the plus side this morning in reaction to their earnings are GS, which is up 5%, and APH which saw a huge gap higher at the open. On the downside are a couple banks such as STT and PNC.
In economic news, the Housing Market Index improved to 25 from 21 last month, which was a bigger jump than economists were looking for. This release helped boost the market when it hit the wires.
The lower dollar is helping most commodities. Oil prices are higher near $100.99. Most metals are higher too. Gold was lower earlier by just a little, but silver and copper prices are both higher today.
The 10-year yield does not seem to reflect any pending economic improvement as it still lingers near 1.86%.
As for the VIX, unlike yesterday when it wouldn't budge despite higher open today it is down by 2.5% in early trading to 21.65.
Trading Comment: The SPX is trying to stay above the 1300 level where it was turned away yesterday. Also, the 50-day average is quickly moving up and should soon break back above the 200-day average. This is know among technicians as a "golden cross" and would be another bullish sign for the market.
KAM Advisors had no positions in stocks mentioned
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