Are the Stocks Up Today Because of the ME Violence?

[stepnw1f]

if so, we are manufacturing war for profit.

[HysteryDiagnosis]

1. Something you might enjoy.....

www.addictedtowar.com

[AlCzervik]

2. some earnings came out, the tech sector is helping the market

as well as oil dropping a bit. The market doesn't seem to give a shit about anything going on in the world for than say a few trading cycles.

[berni_mccoy]

3. The markets were up today because the Fed said the economy was stabilizing

and inflation was in check (ergo, no more rate hikes) and investors bought it.

[Selatius]

6. I wonder what is included and excluded in the measure of inflation

Because if they don't include the cost of fuel and the cost of housing, the number would appear to be lower than what reality suggests.

[berni_mccoy]

8. Cost of fuel is not included and neither is housing

Part of the rational is that the cost of fuel affects the cost of everything (mfg, distribution), so it is already counted. But a big part of fuel cost that is not factored into inflation and probably should be is cost of transporting people (i.e. worker commuting).

I'm not sure of the rational to not count housing other than once you lock in, it is typically a fixed cost and doesn't increase (unless you've purchased a variable rate mortgage or keep refinancing).

[sendero]

4. No...

.. they are up because Bernanke came out with a statement that was interpreted as "I'm done with the interest rate hikes for now".

Now, the REASON he is done with the hikes is that they seem to be working, the economy is slowing down. One could reasonably ask "how is an economic slowdown good for stocks?".

Well, it is good for stocks because rising interest rates:

1) make business more expensive to do, squeezing profits and forcing price increases that reduce sales and

2) higher interest rates in money markets, savings, CDs and the like make them more attractive investments and pull money away from stocks.

I say all of this as a reminder that the stock market is not any kind of indicator of economic health for the masses.

[Clarkie1]

5. Nope. nt

[Warpy]

7. No, they're up because Bernanke lied about inflation

again and said it wasn't happening.

I think most investors must take their brains out and put them in the fridge in case some day they might feel the need to play with them.

[On the Road]

9. Technical Move Up

Oversold. Rise within the channel. Also a feeling that stocks had overreacted to the Middle East war -- that the destruction in Lebanon would not hurt the US economy all that much.

Don't know what the future holds. But I wouldn't be in the market for more than a day or two.