Market Bounces Ahead of President's Speech
Now you know why I don't like strong market opens. Again today, the market opened on a very strong note, but it has since faded. This erodes confidence. Of course, we have the President speaking today, where he will announce his fiscal stimulus package. Let's hope it's something substantial.
I still hold that the Fed could have avoided the need for a big fiscal stimulus package if they had just acted sooner with bigger rate cuts. And you don't have to e-mail me and tell me that that would have spurred more inflation and a weaker dollar. I'm sure the hundreds of thousands of people that have or will lose their job would take that tradeoff.
GE reported solid earnings this morning, and that is what really helped boost the market. IBM also saw a nice reaction to its earnings, even though it already told us they would be good.
Asian markets also bounced overnight. The 10-year yield is steady at the low level of 3.64%. And oil is a bit higher this morning, which is helping some energy stocks.
C'mon, Bushy, say something good for once...