It’s almost a joke at this point. No, it is a joke. Nothing can stop this rally.
But first, the scoreboard:
S&P 500: +9.11
And now,t he top stories:
- Things started off dark enough. Shanghai fell, India collapsed (again) in the late moments of the trading day, and then to top it off, the People’s Bank of China hiked reserve requirements once again.
- That led to equity weakness in Europe and the US (though the euro went absolutely berserk again overnight. Also yield spreads continued to come in).
- Things just kept getting worse and worse in the US until 8:30, when we got CPI and December retail data, and then the hilarity came. The numbers all came in weak and stagflationary, and yet that’s exactly when stocks started turning around.
- And then the rest, you know, is history. Stocks turned around, and then we got solid factory production and capacity utilization numbers, and it was all off to the races from there.
- We did have some earnings: Yesterday’s Intel earnings helped buoy the NASDAQ a bit. JPM reported strong earnings early on, and initially jumped, though it then slid. Late in the day we got word that BP would be selling a stake to the Russians, prompting that to pop. Oh, and gold got totally shellacked.
- Anyway, after today, we stand by this.