There was another big drawdown for crude according to the EIA.  This latest sign of demand dovetails nicely with production declining to 9.0 million b/d from 9.7 million a year earlier if you’re bullish on crude or like the idea of it as an economic proxy showing signs of resolve, even improvement.

The news probably adds fuel to the fire (pun initially not intended, then decided it was cute) for the Fed to hike rates, but the message of the markets is it’s not a big deal if the data backs it up.  Some data is backing it up, although not the most important data, that would be jobs and wages.  On that note, maybe the market is rejoicing in the knowledge it could have its cake and eat it, too.

That cake: some positive signs that could help corporate bottom lines and share prices but not upset the accommodation applecart too much.

IBM

I love the action in IBM.  Not just today, but immediately after that disastrous earnings report that showed another top line decrease in revenue.  The truth is, I wasn’t as down on the numbers as much as the street, and I want to see management get more aggressive with their cash other than buying back stock.  Today's Hewlett Packard / CSC deal could spark the C-suite at IBM to stop playing small ball.  I like the direction of their acquisition spree, but we need to see some big formidable names.

If you don’t own the stock, I love the risk-reward here, and think this will be one of the biggest second half winners on the Dow.

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