Stocks were moving sideways...until midday, when famously bearish economist Nouriel Roubinicame out and said that the "worst is behind us in terms of economic and financial conditions." The Dow rallied over 100 points on that news...
A rally on that? But Roubini was famously bearish at the right moment several years ago, and is widely followed. Roubini less bearish is notable news.
More notable is the slow trickle of modestly positive news this week...from Intel and GoldmanSachs on earnings, and from economic news like Industrial Production, which declined less than expected. True...some companies like Marriott are disappointing, but that is a sector that few are expecting big moves from.
And what about CIT ? The government has given up its $2.3 billion investment, told them there would be no more money, and the Street....yawns.
The bottom line: the market jolts upward whenever there is a modicum of good news, but drops very little on disappointing news.
The Dow is now up 7 percent this week, its' best streak since the March lows.
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