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Stocks rallied strongly today, with the Dow Jones industrials ($INDU) crossing 12,000 and the the Standard & Poor's 500 Index ($INX) topping the psychologically important 1,300 level, as a report showed U.S. manufacturing expanding at the fastest rate since 1974.
With today's gains, the market has recovered all of Friday's losses. In addition to the bullish report from the Institute of Supply Manufacturing, the rally was fueled by better-than-expected earnings. And General Motors (GM) reported better-than-expected February sales, boosting auto shares generally.
The rally comes as protesters continued to call for Egyptian President Hosni Mubarak to step aside. Egypt's economy appears to be basically frozen. But the Suez Canal was operating normally, and there were reports more traffic than usual was going through the key waterway.
source
Yesterdays strong Chicago Purchasing Managers report shows that economic recovery is well under way, even though there is yet to be a significant amount of inflation that would normally occur in such an environment.
There is good news from GM, BP, and UPS, which was a catylist for this mornings move that was nearly straight up to the key technical level.
So much for the tired cliche of "Obama is destroying our economy".