This was a very constructive day. Star of the show was home builders, up double digits as mortgage rates dropped to 5.5 percent, down a half point. At the end of the day CNBC confirmed that the Treasury Department was considering a plan to revitalize the home market by reducing mortgage rates for new home loans. the hope: get rates as low as 4.5 percent.
Another positive sign: not only did financials rally, but so did consumer names like Coke and McDonald's . For the past two months, most up days would see consumer stocks sell off, and vice-versa. Broad rally like this, with consumers and financials up, is an encouraging sign.
They also drove up prices for retailers, who are anticipating a terrible series of November same store sales reports tomorrow. The question is whether the market has sufficiently discounted the bad news.
Finally, commodity companies got real, finally acknowledging that demand had dropped significantly:
Schlumberger : earnings below expectations
Anadarko Petroleum : 2008 production lower due to hurricanes
Freeport McMoran : suspended their dividend, cut capital expenditures and lowered their copper output as copper prices have dropped.
Alpha Natural Resources : shipping less coal on steel declines
Maybe he'll be right this time. Bill Miller says the market has bottomed! The famed Legg Mason Value Trust head says the stock market has bottomed!
Never mind he is down more than 60 percent this year. What's really bugging traders is he made the same call--in April!
In case you're too lazy to check it out, the headline says, "Legg Mason's Miller sees recovery for stocks; 'Worst is behind us,' famed fund manager tells beleaguered shareholders."
That was April 23rd. Since then, his Value Trust has dropped 50 percent.
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