We didn’t hear all that much to like in Bernanke’s testimony today. It still sounds like the Fed is viewing the economy through rose-coloured glasses. We weren’t excited that their stress test “worst case scenario” looks to be comfortably within what’s expect, if not even slightly optimistic. But alas, the market liked the dribs of we don’t want nationalization talk, and led by the financials stocks are up solidly. After yesterday’s 3.4% declines, stocks are up over 2.5%.
Financials are soaring, with the XLF up over 8%. Citigroup (C) and Bank of America (BAC) are both up in the teens percentage-wise, but only off of low-low bases. We’ve seen rallies like this before, and nothing about this suggests this is all that different.
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