The markets were relatively flat today as they bounced up and down but ended higher by about 1/2%. Companies keep reporting mostly negative news. Investors are assuming the worst so perhaps stocks need to see dire news to aggressively sell.
On the economic front, the leading indicators advanced .3% which was way above the expectations of a .2% decline. This was topped off with a bigger than expected rise in existing home sales. Perhaps the economy will start to see some positive tea leaves but most companies don't see the light at the end of the tunnel.
Early this evening perhaps brought the news the markets need. Treasury Secretary Geithner was confirmed and sworn in. The Obama administration can now move forward with a stimulus package as it tries to jump start the morbid economy. More companies should report dismal earnings and bleak futures and weak economic news will likely persist but the prospects of a stimulus package and a cleaning up of the financial industry mess could give us a little bit of the Obama rally everyone is hoping for.
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