Fed Boost Spurs Stocks To 2010 Highs

[thundley4]

The Federal Reserve wanted to push interest rates lower and jump-start financial markets with its $600 billion economic stimulus plan. So far the Fed is getting the results it wants.

Long-term interest rates sank and stocks indexes hit new highs Thursday, a day after the Fed announced its massive bond-buying plan. The Dow Jones industrial average soared more than 220 points, reaching another high for the year. All three main stock indexes have now reached 2010 highs this week.

After five straight days of gains, the Dow Jones industrial average returned to levels last seen in early September 2008, before the collapse of Lehman Brothers and the worst days of the financial crisis.

"Much of today's gains comes as a result of the government pumping money into the market," said Joe Kinahan, the chief derivatives strategist at TD Ameritrade.

NPR

NPR totally ignores any affect that the election may have had on the DOW.  I believe the election caused more of the jump that what the fed did.

[ColonialMarine0431]

NPR's analysis is that of a simpleton.

This one I read at CNNMoney.com is much better. Even though CNN News is biased, their financial reporting is pretty decent.

"QE2 (Quantitative Easing-essentially printing money, which leads to inflation. My words) is hitting the market big time," said Peter Tuz, president at Chase Investment Counsel. "The rally really took off overnight with global markets and commodities, then spread to the U.S., and now we're seeing it just take off."

"I think investors are all over the place with their feelings," said J. Bryant Evans, a portfolio manager at Cozad Asset Management. "There's a lot of polarity about whether we even need quantitative easing at this point or whether it's a hindrance."

The end to political uncertainty about the midterm elections -- which resulted in a widely expected Republican victory -- has also given stocks a boost, he said.

"The issue of what was going to happen during the election has been resolved, and a less regulatory, more business-friendly political environment has developed," said Evans. "A lot of it should have been built in to the market already, but what was not built in was the resolution of uncertainty."

News that the Obama administration is open to extending tax cuts to all income brackets provided yet another catalyst to the market's upward trajectory on Thursday.

"That's fuel to the fire," said Tuz. "It gives people the sense that the direction the country took with the election is going to result in positive change -- if you regard stable tax rates as positive change."

http://money.cnn.com/2010/11/04/markets/markets_newyork/index.htm

Gold and commodities, two things investors run to when inflation is feared, also jumped. Oil jumped as well.

[true_blood]

Gold and commodities, two things investors run to when inflation is feared, also jumped. Oil jumped as well.

Very true. Food, the other commodity is also going to be on the rise.
This QE 2.0 makes me very nervous.

[thundley4]

Very true. Food, the other commodity is also going to be on the rise.
This QE 2.0 makes me very nervous.

Food prices are already going up.  Gas at the local station jumped over $.10/gal from yesterday to today.

[ColonialMarine0431]

Most people don't think of inflation when they hear news like this. They will in a few months if, say, a loaf of bread or a jar of peanut jely that used to be $X is now $X.45.

[thundley4]

Beck is going to be getting into the whole coming inflation thing next week.

[ColonialMarine0431]

Not to thread hi-jack, but someone told me that when they were watching Beck the other day they saw an ad about a documentary or special coming up about George Soros soon on FOX. Anybody know about this?

[thundley4]

Not to thread hi-jack, but someone told me that when they were watching Beck the other day they saw an ad about a documentary or special coming up about George Soros soon on FOX. Anybody know about this?

I don't know about a special, but it may have been a part of his regular show.

http://www.youtube.com/watch?v=5tJ1UCJ8on8

[ColonialMarine0431]

I don't know about a special, but it may have been a part of his regular show.

http://www.youtube.com/watch?v=5tJ1UCJ8on8

I think I found it.

http://mediamatters.org/mmtv/201011020046

[true_blood]

Not to thread hi-jack, but someone told me that when they were watching Beck the other day they saw an ad about a documentary or special coming up about George Soros soon on FOX. Anybody know about this?

It will be on Tuesday November 9.
He's had some great shows lately. If you didn't see the show yesterday, the 4th or today, the 5th, you should check them out on youtube.com. Very informative.
Today's show was strictly, "hypothetical", but shows you what "could" happen. Gotta love that quantitative easing.