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Dow Hits 52-Week High; Cloud Companies Strong

The Dow Industrials is the first major index to pass its recent 52-week intraday high. The old intraday high was 12,450.93 on April 6; we are now above that. As of 11am ET, we are also above the old closing high of 12,426.75 on April 6.

Three factors driving today's rally:

1) solid demand for a Spanish bond auction had helped Europe and U.S. futures pre-open;

2) a weak dollar helping commodities and commodity stocks;

3) evidence of demand improving across many sectors — from Intel , United Technologies , CSX , Freeport McMoRan , VMware, and others.

Elsewhere:

Cloud lovers, rejoice. Cloud/web hosting companies all strong this morning on the back of VMware reporting much better top and bottom line numbers...revenue guidance was also raised. How strong was business? Billings — the key metric — were up 44 percent year over year, about twice consensus.

Cloud computing is continuing to spread, and the next area of growth appears to be the federal government. The experts in charge of the federal government's IT programs are planning to shift 25 percent of the government's $80 billion in annual IT spending to cloud computing, according to InformationWeek.

For more on how the federal government is going to cloud computing in a big way, check out this article.

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