"On Wall Street, bad may be the new good when it comes to economic data.
Investors translated a grim September jobs report as a welcome sign that central banks might rush to inject additional stimulus into the economy. It's a twist of logic as Wall Street now views negative economic snapshots as a positive for the stock market.
The Labor Department report was the catalyst for the stock market as the Dow Jones Industrial Average closed above 11000 on Friday for the first time since early May. There are building expectations that the Federal Reserve, Bank of England and perhaps the Bank of Japan might embark on a second round of quantitative easing—dubbed by investors as "QE2"—to keep the recovery going.
George Stahl explains why a weak jobs report actually helped stocks advance today, pushing the Dow back above the 11,000 level for the first time since May.
That means Wall Street has been viewing every negative economic report as another reason to snap up stocks."
No comments:
Post a Comment