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Big blue has markets looking higher

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Yesterday afternoon's earnings report from International Business Machines (NYSE:IBM) has investors rather bullish this morning. Yesterday after the close of trading, "Big Blue" as the company is affectionately known beat analyst's estimates by a penny when the company reported earnings of 90 cents a share. Yesterday, IBM finished the regular session at $101.85 and has traded as high as $106.50 in Instinet trading.

S&P futures are bid higher this morning to 1,111 (up 11.50 points). NASDAQ futures are higher by 34 to 1,445 and Dow future are surging 100 points higher at 9,480.

Bond YIELDS higher as prices fall

Bonds are seeing some selling this morning and we've got green on the screen as it relates to YIELD. The 5-year note ($FVX.X) is seeing the bulk of the selling as YIELD there climbs to 3.814%. As we move out on maturity we're seeing less selling as the 10- year YIELD is up just fractionally at 4.581% and the 30-year YIELD is oscillating back and forth unchanged levels, currently at 5.338%

The action in the bond market is somewhat surprising and I would have thought equities would be getting the bulk of the attention this morning. Alan Greenspan (Federal Reserve Chairman) is scheduled to address Capitol Hill and testify before the congressional Joint Economic Committee at 10 a.m. EST.

Jeff Bailey
Senior Market Technician
Option Investor

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