Stock Markets Exposed

Do you know why the stock market goes up today despite all the bad news on economy?

With all the write downs and losses on the collaterized debt obligation, the stock market still go up about 30 point this morning, where comes the money, does it come from the investment bankers who draw money from the Federal discount window? It is taxpayers' money. The FED is irresponsible to put taxpayers' money to the drain.

Public Comments

1. The stock market always fluctuates. The price of every stock varies individually. One of the reasons the price of stocks goes up in general, is that the value of the dollar goes down.
2. Always keep in mind what market index you are referring to when judging 'stock market' performance. There are only 30 companies in the Dow Jones Industrial Average and if only one or two are up a large amount on a day when the rest of the stocks are slightly down, this could skew the numbers to look like a positive day. The S&P 500 is an index of the 500 largest market capitilized companies publicly traded. The S&P is currently heavy in the financial sector. As the burden of the credit crunch lightens and the financial sector rebounds, there is a distinct possibility that the S&P 500 will be positive then other sectors are down. The NASDAQ is technology heavy and will generally move with the tech heavies Google, Microsoft, Apple and the like.
3. Man, neither of those answers covered the question at all. and it's a question many investors have been baffled by- with the USA approaching a recession why are equities going up? At best, we can label it as a "dead cat bounce", meaning this is just a minor raise on what will ultimately be a very bearish period for the market.
4. Yes, it's because the economy isn't as bad as the Democrats want you to think it is. When Oil is up and the dollar is up, and gold barely moves; that's a good thing. When the Fed motions there will be no further tax cuts and the financials go up, it's a good thing. When a financial institution reports bad earnings, let alone terrible earnings and the stock as well as the market blow it off, the economy is still growing, it's a good thing, it scares the Democrats. Bulls rule, bears beware.
5. Because the stock market is a prediction of what will happen in the next 6 months, not what is happening today. With stimulus checks in the hands of people, they are going on a spending holiday, which means that retail stocks will benefit. Also, people will go on vacation, which means they'll fly, stay in hotels, eat out, which will stimulate the economy.