The market continued to move higher on Thursday with the Dow closing above 10700 for the first time in 15 months. The S&P 500 also registered its eighth gain for the past nine sessions. Investors are betting that the most companies will beat expectations for the upcoming earnings season. Although I agree such an optimistic view, I do think that the majority of the good news has been priced in. This can also be seen from Intel’s upbeat earnings report after the bell. If it were two or three quarters ago, such good reports can easily send the Dow futures up by 100 points. But it can barely move the future in the after-hour trading today. In contrast, a disappointing report such as Alcoa’s will see stock prices tumble, indicating investors have little tolerance for mediocre results.

Most major sectors finished the session higher led by technology and health care. The CRB commodity index lost 0.3%. The US dollar was lower against most major currencies. Treasury yields declined. The three-month US LIBOR was unchanged at 25 bps. The VIX index was little changed. The market breath was positive on both NYSE and Nasdaq. The volume was similar compared to the previous session.

The market continued to move higher on Thursday with the Dow closing above 10700 for the first time in 15 months. The S&P 500 also registered its eighth gain for the past nine sessions. Investors are betting that the most companies will beat expectations for the upcoming earnings season. Although I agree such an optimistic view, I do think that the majority of the good news has been priced in. This can also be seen from Intel’s upbeat earnings report after the bell. If it were two or three quarters ago, such good reports can easily send the Dow futures up by 100 points. But it can barely move the future in the after-hour trading today. In contrast, a disappointing report such as Alcoa’s will see stock prices tumble, indicating investors have little tolerance for mediocre results.

Most major sectors finished the session higher led by technology and health care. The CRB commodity index lost 0.3%. The US dollar was lower against most major currencies. Treasury yields declined. The three-month US LIBOR was unchanged at 25 bps. The VIX index was little changed. The market breath was positive on both NYSE and Nasdaq. The volume was similar compared to the previous session.

The market resumed its advance and the Dow closed at a fresh 15-month high after breaking through 10700 earlier. The S&P 500, meanwhile, registered its seventh gain out of the past eight sessions. One interesting phenomenon today that has occurred regularly since early December is that both the dollar index and the equity index are moving higher. It shows that instead of acting as a safe-haven, the dollar is more of an indicator of the status of the economy. With economy strengthening further, we expect higher dollar value for the year. Separately, the Fed’s Beige Book report showed the economic recovery was spreading geographically but it also indicated that the job situation remained a challenge.

9 of the 10 major sectors finished the session higher led by Health care and financials. The CRB commodity index rose 0.2%. The US dollar was mixed against most major currencies. Treasury yields rose. The three-month US LIBOR was unchanged at 25 bps. The VIX index dropped less than half point. The market breath was negative on both NYSE and Nasdaq. The volume was a little lighter compared to yesterday.

The market had its first decisive down day as the S&P 500 finished its six-day winning streak. There are a couple of reasons behind today’s drop. First, the Dow component Alcoa’s earnings results were disappointing and acted as a wake-up call to those looking for another spectacular earnings season. But Alcoa’s results are more likely an outlier and should not represent other companies because earnings comparisons will be extremely easy for most firms. Second, China’s first reserve ratio hike in 19 months made investors nervous about upcoming tightening cycle. The Chinese economy is simply too hot and if the central government doesn’t take any action, it could cause massive inflation pressure in the near term. For the US, inflation is not a big concern for the time being but the Fed has also quietly taken money out of the system by discontinuing several emergency programs. Although tightening monetary situation is a real concern and we have already discussed the issue several times, I think a bigger concern that is going to face investors will be slower-than-expected economy recovery late in the year. The recession that we just finished is the largest since 1930s and won’t be an easy one to get out of.

Most major sectors finished the session lower led by basic materials and energy. The CRB commodity index lost 1.7%. The US dollar was mixed against most major currencies. Treasury yields dropped. The three-month US LIBOR was unchanged at 25 bps. The VIX index rose more than 1 point. The market breath was negative on both NYSE and Nasdaq. The volume was a little heavier compared to the previous session.

The momentum continued on Wall Street and the S&P 500 posted its sixth straight gain for 2010. Interestingly, the only other time that the market has a better showing is 1987, when it rose for seven straight days. But veteran investors should still remember the infamous “Black Monday” that occurred later that year. It was a session with little economic or corporate news. After the bell, the Dow component Alcoa unofficially kicked off the latest earnings season. The company beat on top-line but missed its bottom-line estimation. Tomorrow the market could have its first real test for the year.

Most major sectors finished the session higher led by utilities and industrials. The CRB commodity index lost 0.5%. The US dollar was lower against most major currencies. Treasury yields dropped. The three-month US LIBOR was unchanged at 25 bps. The VIX index dropped less than 1 point. The market breath was neutral on both NYSE and Nasdaq. The volume was neutral compared to the previous session.