Microsoft Up 10% Afterhours

Should bode very well for market mood in the near term; but still awaiting Baidu.com (BIDU) which is more of a psychological impact stock. That said Microsoft (MSFT) is tacking on about $30 billion worth of value in after hours. Before these Chinese stocks came around that would be an impressive and nearly unprecedented wealth creation, but companies like PetroChina (PTR) were adding $30 Billion a day for a few weeks there.

As I stated yesterday in regards to Microsoft

if Intel (INTC) is doing well, Microsoft is probably also doing well since their OS goes into most Intel machines. Not quite the bellweather it once but found in just about every large cap mutual fund in the country.

Quick look around:
Agriculture conglomerate Bunge (BG) looks great; Terra Industries (TRA) looks great - they do nitrogen so that bodes well for CF Industries (CF). Rising tide lifting all these boats.

And as I type this Baidu.com out and looks like a beat on both top and bottom line and stock is stable in after hours. So the beat goes on. Uncle Ben will give the market a treat next week and more dollars (each worth less than the ones you have now) will flow through the economy. Meanwhile housing continues to implode. Remember folks, this is inning 2-3 of housing correction, not 6-7 or even 8 as some pundits are telling you. That doesn't mean the housing stocks can be worth a good trade every few weeks but for buy and hold; no way. The economy is slowing no matter what the government statisticians are telling you - believe what the companies themselves are saying. Even solid companies like Caterpillar, Cummins Engine, Honeywell are telling you the US is slowing.

What an exhausting week - the averages are not showing the crazy action intraday or within specific names. Do you realize the market is up around 1% this week? (remember we were coming off a terrible Friday) On the earnings front not a ton of interest tomorrow - Baker Hughes (BHI) might impact oil to some degree; but other than some worst than expected news that I am sure will leak out at Countrywide Financial (CFC) it looks to be a quiet docket - and after Countrywide scares us with some terrible news finally people will believe the Fed will cut for sure Wednesday. Remember, could be 50 basis points the way things are slowing....

Ah spoke to soon, as I typed this entry Baidu.com drops 7%. Oh well, another case of great earnings and too many momentum players chasing. Hopefully it drops to mid $200s so I can add.