The stock market is doing quite nicely today with the S&P and Dow both up about 1.4% and the NASDAQ Composite up over 2%. 

Intel’s better than expected earnings and decent guidance for the PC market are likely stoking the market’s gains.  This news is in contrast to GE’s disappointment last week and once again may suggest that the weaker economic news in general may largely be centered within the credit and financial markets.  While one company’s earnings report is never the end all be all for the markets, Intel’s news is certainly being welcomed with much greater appreciation than GE’s report was last week.

In addition to Intel’s news, the CPI also came out this morning and was tamer than yesterday’s higher than expected PPI report.  This suggests that the higher prices being paid by manufacturers and producers are not, at least at the moment, being passed on to consumers in terms of higher prices, with the exception of energy and food.  For the moment, this is good news, but it may also suggest that manufacturer’s are having to eat their higher costs which may result in reduced profit margins in the absence of continued productivity gains.

All in all, it’s a good day.  Thank you Intel.