Despite lukewarm earnings announcements and disappointing economic data, the markets have been remarkably resilient.Perhaps sentiment has already been too low. Or may it’s the prospect of more easing from the Federal Reserve.
But whatever the case, the market’s resilience in the face of bad news has been notable.
Art Cashin wrote about it in this morning’s Cashin’s Comments:
Rumormongers Fail To Get On Base Despite Many At Bats – One of the interesting features of Wednesday’s session was an incredible number of rumours that popped up but never took hold nor showed market impact.
The largest number of rumours seemed to relate to Syria in the wake of the bombing that killed several cabinet ministers.
Assad was said to have fled to a coastal town in preparation to escape under Russian protection. Others claimed Russia had a ship and several thousand marines off shore – not to protect Assad, but to seize chemical weapons should the regime collapse. That would be to keep them out of the hands of Chechnya’s Muslim rebels.
A flurry of other rumours had Syrian rebels fleeing into neighbouring states, pursued by Assad’s troops and destabilizing neighbouring governments.
There were other rumours around the bus bombing in Bulgaria. When Netanyahu blamed Iran, it reignited last week’s rumours of Israel activating a clandestine airbase in Azerbaijan from which they could launch a bunker busting raid on Iran.
There were also contentions that Iran, feeling more isolated by the imminent fall of its ally in Syria, might double down on its nuclear effort.
Those last two rumours may have been part of the boost in oil that had begun on supply data.
The rumormongers even branched out into Egypt, China and Brussels. Amazingly, all without a scintilla of noticeable impact on the markets. A rare no-hitter for the mongers.