The market rallied yesterday because there was confidence that the Greek situation would be resolved given French plans and perhaps more importantly behind the scenes support from China. Microsoft (MSFT) rose because a court decision voided a law requiring video game makers not to sell violent games to youngsters. Amazon (AMZN) rose sharply on an upgrade from Morgan Stanley (MS). Bank stocks rallied most likely because they were oversold, and were helped by a buy recommendation from analyst Dick Bove for Bank of America (BAC). Bank stocks also rose given stories from Basel that capital requirements for large banks would need to rise less than expected. The Fed gave trading desks another round of POMO($4.5B). Late in the day there was a comment that a debt ceiling deal was within reach but republicans had to compromise on taxes.
Commodities were weaker which was surprising. Bonds sold-off as they hit resistance.
Today we expect some housing data and Consumer Confidence data.