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The economy is garbage, and still we hit new highs!But first, the scoreboard:
S&P 500: +4.99
And now, the top stories:
- Obviously the dominant theme of the last 24+ hours has been the Bernanke press conference, which has widely been seen as very dovish, sending the dollar diving and the precious metals surging, along with other commodities and of course commodities.
- That lead into another strong night in Japan, where stocks have now completely erased their post-Fukushima woes. China, meanwhile, had a very ugly night.
- Nothing happened in Europe, so we’ll skip right over it.
- The early going was all about US economic anticipation. GDP came in very weak, as expected, thanks to a huge falloff in defence spending. Initial claims continue to be mediocre, surging again to its third straight week above 400K.
- This morning we also got some ho-hum earnings reports. The oil earnings that everyone has been hyping have just been OK. P&G fell thanks to rising commodity costs — one of the first big companies to see serious margin crimpage. Pepsi also took a hit for similar reasons.
- The early going was filled with people screaming about STAGFLATION. Stocks were down. Oil was up. Silver seemed headed back to $50.
- And yet! It all settled out to the favour of the bulls, mostly. Commodities came off their highs, and yet the markets still had a great day. Markets are pretty funny.
- Still, the economy really is still looking horrible. Click here for a full guide to how bad the recovery has been >