Massive Stock Market Rally Today!!!!!

04/18/06 | Misterrob

[misterrob]

Life is good!!!

Dow --11,268 + 194.99

S&P --1.307 + 22.32

NASDAQ --2,356 + 44.98!!!!!

[kinghorse]

@#$%%@#$ lousy economy!

[Republican Red]

Neil Cavuto explained that because oil/gas are so high ($72) that the market sees this bad news as good news that the Fed won't raise interest rates anymore. Bad news os good news today. Confused?

[Clemenza]

This is the worst economy since Hoover I tell ya! ITS ALL BUSH'S FAULT!

[Pukin Dog]

True, high oil prices are GREAT for the markets, but don't tell that to grandma before she fills up the minivan!

[Clemenza]

BTW: Greed aka rational self interest IS GOOD!

[West Coast Conservative]

WORST ECONOMY SINCE HOOOOVER!!!!!111one

[durasell]

Whatever happened to ole Ivan, anyway?

[DCPatriot]

If George W. Bush was a democrat, his approval ratings would be 88%.

The economy is roaring, we haven't had a terrorist attack since 9-11, and we're actually winning the war in Iraq.

God-d*mned MSM!

[buck61]

This is the worst economy since Hoover.
Yes it is, and it is all Bush's fault. (satire)

[Beagle8U]

Dang that Bush and his tax cuts ! / sarc.

[NeoCaveman]

Neil Cavuto explained that because oil/gas are so high ($72) that the market sees this bad news as good news that the Fed won't raise interest rates anymore. Bad news os good news today. Confused?

Also, sometimes Good news is bad news as it makes them fear the Fed will raise rates.

In short good news = good news unless it equals bad news, and bad news = bad news unless it equals good news.

Financial talking heads have the best job on earth. I envy them.

[Southack]

"Neil Cavuto explained that because oil/gas are so high ($72) that the market sees this bad news as good news that the Fed won't raise interest rates anymore. Bad news os good news today. Confused?"

The official reasons for market rallies seldom align with reality. Cavuto is giving you the official version.

The real reason for the market rally today is that there is a rumor going around that China's President Hu is going to announce a major revaluation of the Yuan when he meets with President Bush while both are here in primetime.

[Alberta's Child]

Oddly enough, high oil prices are actually counter-inflationary (contrary to popular wisdom). When fuel prices are high, overall demand for just about every product and service diminishes.

[durasell]

When?

[buck61]

It's Bush and all of those d*mn oil people.
Ford Motor Co. from last week. People will still purchase SUV
if oil passes four bucks a gallon.

[MplsSteve]

I drive a Saturn VUE and on Sunday, I filled it up in Wausau Wisconsin.

A full tank cost me $39.00! And I was pumping regular gas only.

The sticker shock definitely hit me. So, I beat up the clerk and drove away w/o paying.

OK, I lied about the last part! But the sticker shock did really hit home.

[mainepatsfan]

I'd love to be a fly on the wall in the network newsrooms as they figure out how to put a negative spin on this tonight.

[Wings-n-Wind]

Cha-chinnggg.....

Thank yeewwwwww....

[mainepatsfan]

Don't you think that argument is lost on gen X'ers?

[Alberta's Child]

There was a great article on that topic posted here last week. It was quite fascinating, in that it suggested that allowing the yuan to float freely against the dollar would have some serious adverse consequences in the U.S. -- mainly because the yuan would likely decline against the dollar in the long term.

[ran15]

Everyday on the news during the boom in the late 90's they'd have some average person who made it big in Clinton's economy.

Through this boom they've got each day a family who was middle class, but now is struggling. With no chance to find a job, because of Bush's economy. Yet unemployment today is lower then in the late 90's.

[SF Republican]

Gee, I wish Jimmy Carter was still in office! How I miss stagnation, inflation, 21% mtg rates, and especially Billy (actually I really do miss Billy).

[Harmless Teddy Bear]

[Savage Beast]

Hey, wait a minute! It's the worst economy since the Great Depression--everybody says so: The Democrats, the "Journalists", Democrats, Hollywood, "Journalists", Democrats--Everybody!

[Emmet Fitzhume]

I know.

More bad news for CNN/NYT/MSNBC and the other venomous dinosaurs.

The usual suspects are too busy hyping nonsensical news stories such as the non-existing Iraq civil war, bird flu, Treasonous Seven, etc...

As if those punks would report overwhelming success of the US economy under President Bush. Yeah, and I am Spiderman.

[Clemenza]

Ivan Boesky now lives a quiet life on a farm in (I think) the California Central coast. He has actually won state contests for flower growing, I kid you not!

[Mo1]

The real reason for the market rally today is that there is a rumor going around that China's President Hu is going to announce a major revaluation of the Yuan when he meets with President Bush while both are here in primetime.

In English .. what does that mean to us?

[Don Carlos]

don't tell that to grandma before she fills up the minivan!

Minivan, hell! I filled up my lawnmower gas can today, $14.15 for 5 gallons! I'm doing my fair share to boost the markets!

[NeoCaveman]

Oddly enough, high oil prices are actually counter-inflationary (contrary to popular wisdom).

A certain mortgage guy has been saying, for a year, that high oil prices are holding down interest rates. Kind of counterintuitive but many things are.

[Pukin Dog]

A Saturn?

Well, my Hummer fill up yesterday cost me $88, so be happy.

[Ernest_at_the_Beach]

Yeah for Big Blue.....

IBM Reports 2006 First-Quarter Results

*******************AN EXCERPT *****************************

 TUESDAY, APRIL 18,

-- Income from continuing operations of $1.7 billion, up 21 percent from first-quarter 2005.

-- Total revenues of $20.7 billion, down 10 percent as reported, up 4 percent when adjusting for currency and the impact of the divested PC business.

IBM today announced first-quarter 2006 diluted earnings per common share of $1.08 from continuing operations, compared with diluted earnings of $.85 per share in the first quarter of 2005, an increase of 27 percent. First-quarter income from continuing operations was $1.7 billion compared with $1.4 billion in the first quarter of 2005, an increase of 21 percent. Total revenues for the first quarter of 2006 of $20.7 billion decreased 10 percent (7 percent, adjusting for currency) from the first quarter of 2005, which includes revenue from the divested PC business. Excluding the PC revenue, revenues were flat (up 4 percent, adjusting for currency) compared with the first quarter of 2005.

[NeoCaveman]

People will still purchase SUV if oil passes four bucks a gallon.

I figure at $5 a gallon, I can buy the SUV I've wanted for 20 cents on the dollar.

[durasell]

That don't make'em like ole Ivan anymore. The Enron guys are a poor shadow of his brand of swashbuckling mischief.

Oddly, Henry Kravitz just keeps going.

[MplsSteve]

How much did you pay per gallon?

I paid $2.79.

That seemed to be the going rate in all of central and west-central Wisconsin.

[Ernest_at_the_Beach]

In English .. what does that mean to us?

Walmart prices may go up!

[Daus]

Well, my Hummer fill up yesterday cost me $88, so be happy.

Can you at least put regular octane in the Hummer?

My X5 needs the good stuff (so they say) AND it has a 22 gallon tank. :)

[Emmet Fitzhume]

[SAJ]

That'd be nice, if true. Not holding m'breath, though.

[Southack]

"In English .. what does that mean to us?"

The Chinese Yuan is deliberately (market-manipulated) undervalued versus the Dollar. That makes Chinese products unnaturally cheap.

The revalution of the Yuan, if the **rumor** is correct, would instantly make Chinese products more expensive...helping to cut our Current Account trade deficit, aiding our steel (well, heck, aiding all of our) exporters, etc.

The stock market would love it. U.S. employers would love it. U.S. workers would love it.

U.S. bond traders would sit up and take notice (or else take it on the chin), certainly.

[Pukin Dog]

Nope, premium only. It causes me physical pain every time I pass my local Arco.

[muawiyah]

And, best of all the RUSSELL 2000 is up 2.8%

What that means is that if the market could do that every trading day for the next year, you would have $1,000,000 for every $1 you had invested yesterday.

Obviously the market isn't going to do that every trading day.

I'd be happy to have it every 10th day.

[KarlInOhio]

Don't you think that argument is lost on gen X'ers?

Nope, I'm a gen Xer and I know what you mean. Hoovers are vacuum cleaners so it's making a reference to the economy sucking. < /joke>

[mainepatsfan]

Talk about an old play book.

[Daus]

In English .. what does that mean to us?

Some more background. As Southack says, it makes our products cheaper.

Revaluing the Yuan: Where Politics and Economics Collide

[muawiyah]

Get a smaller tank.

[KStorm]

Yeah, but I feel for my neighbor. :)

[familyop]

"The real reason for the market rally today is that there is a rumor going around that China's President Hu is going to announce a major revaluation of the Yuan when he meets with President Bush while both are here in primetime."

That's good news. Getting to know the Bogeyman (fear of competition and fear of future dollar instability surprises) can inspire more short-term confidence. A little more courage and calm could make the long term ride better, too. It would be nice if more investors would let it ride. Too many knee-jerk rate hikes haven't done much more than lower value in friendly countries relative to ours and doesn't really make us all richer in the long term.

[durasell]

On the other hand, if the yuan float is just cosmetic (like what they announced last year) or doesn't happen, then the market gives back the gains.

[Southack]

"I paid $2.79. That seemed to be the going rate in all of central and west-central Wisconsin."

$2.53 for regular at Costco last weekend in Alabama.