Posted on 12/01/2010 1:30:27 PM PST by ChicagoConservative27
Stocks were up more than 2% Wednesday, with the Dow Jones Industrial Average ($INDU) holding a 200-point gain as an increase in private-sector employment and speculation that the European Central Bank will enact measures to contain the eurozone debt crisis when policymakers meet Thursday. At 1:16 p.m. ET, the Dow was up by 254 points, or 2.3%, at 11,260. The S&P 500 ($INX) was gaining 27 points, or 2.3%, at 1,207, and the Nasdaq ($COMPX) was ahead by 59 points, or 2.4%, at 2,557. "The market was slated to open higher on two factors: China’s manufacturing sector grew and we had less of a hectic day in the foreign exchange markets,” said Peter Cardillo, chief market economist at Avalon Partners. “It appears that some of the comments that (ECB President Jean-Claude) Trichet made to try and calm the markets helped a little bit. But markets really added to gains after the ADP report, which was quite encouraging.”
(Excerpt) Read more at articles.moneycentral.msn.com ...
I don’t trust any of this.
It’s all a fantasy!
Skittles and Unicorns! Gee, ain’t life great!
LLS
One way to “trust” it is to take the increase as signifying that many believe the FRB is now tied to the ECB such that both are on a worldwide mission to destroy all bondholders, leaving stocks comparatively more attractive. In a hyperinflation, you are at least left owning something real at the end of the day when you hold stock in something real. Bondholders just have a worthless piece of paper.
Of course the stock market is happy - it benefits from artificially low interest rates and a flood of cash from banks, hedge funds and private equity dealers. For this to work, you must maintain the belief that our national debt is meaningless and that skyrocketing commodity prices will not translate into higher prices for finished goods.
Skittles, anyone? The unicorns were particularly productive today.
A lot of companies listed on U.S. stock markets are actually attractively priced for investors, but their values have been suppressed by investors selling off in anticipation of an adverse tax climate starting on January 1st. If there is some certainty about resolving the dividend and capital gains tax picture for next year, I think there's a large UPSIDE for U.S. stocks.
Neither do I. 93,000 total private sector jobs gained during the holiday season may mostly be seasonal hiring, but we won’t know for sure until the end of January.
However, layoffs in November were 28 percent higher than in October, the biggest increase in eight months, global outplacement consultancy Challenger, Gray & Christmas reported. The biggest number of layoffs were in the nonprofit sector.
http://www.cnbc.com/id/40458392
Seasonal hiring?
I’m certain of it.
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