Oracle Jumps Thanks to Earnings Report

The stock market just broke above 1,350 for the first time since May 14th. This could be the fourth up day in a row.

The good economic news is that housing starts rose last month. The Commerce Department said that 3.2% more single-family homes were started in May. The figure for April was revised higher. The very volatile Homebuilder ETF ($XHB) is up to $20.72. It was under $13 last October.

Everyone was worried about what would happen if bond yields in Spain broke 7%. They did and they’re going even higher. The yield for Spanish 10-years got as high as 7.27% today. The country just sold a bunch of one-year bills at 5.2% and 18-month bills at 5.35%. At some point, Spain will be the next Greece. The European Central Bank has been able to keep yields down after it flooded Europe with euros. But the impact of that move has faded away.

Thanks to Oracle’s ($ORCL) strong earnings report, the stock is up more than 5% this morning. The company gave first-quarter guidance of 51 to 55 cents per share which strikes me as too low. The Street was at 53 cents per share. On the conference call, Larry Ellison noted that Oracle is the #2 cloud software firm.

Finally, I’ll note that Bed Bath & Beyond ($BBBY) and Reynolds American ($RAI) are both at new fresh 52-week highs this morning.

Posted by on June 19th, 2012 at 9:55 am


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