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Stocks rally as Beige Book shows expanding economy

  • Stocks finished higher for a second straight session, with the Dow jumping nearly 100 points, after the Fed's Beige Book showed the U.S. economy grew at a "modest to moderate" pace in July and August.
  • The Senate Foreign Relations Committee passed authorization for use of military force in Syria, clearing the way for a vote in the full Senate, likely next week.
  • Ford (+3.5%) and GM (+5%) rallied as U.S. light vehicle sales recorded their strongest month in more than six years.
  • Crude oil futures slipped 1.2% to $107.23 after rising sharply in previous sessions, while gold fell 1.6% to $1,390.
  • The yield on 10-year Treasurys rose to 2.899% as prices fell.
Comments (8)
  • Moon Kil Woong
    , contributor
    Comments (11015) | Send Message
     
    Bubblicious. I thought that went out of style in 2007 but I seem to be wrong. We will see how high it will go this time as the greater fool theory rules the market.
    4 Sep 2013, 06:51 PM Reply Like
  • optionsexpert
    , contributor
    Comments (279) | Send Message
     
    Is it a bubble if it doesn't burst?
    4 Sep 2013, 08:46 PM Reply Like
  • American in Paris
    , contributor
    Comments (5504) | Send Message
     
    The US economy is not at all bubbly. There is plenty of excess capacity. Inflation is under 2%. Little in the way of the wage pressures. Low natural gas prices.
    5 Sep 2013, 03:05 AM Reply Like
  • American in Paris
    , contributor
    Comments (5504) | Send Message
     
    It is not a bubble. Asset prices are not inflated. Moon simply repeats the same thing over and over again.
    5 Sep 2013, 03:06 AM Reply Like
  • Morrison Marketing
    , contributor
    Comments (96) | Send Message
     
    Moon, this economic miracle is the result of sound money, low taxes and low regulations. The formation of businesses is free flowing and the citizens are educated and responsive to the current demand for labor.

     

    We are growing at 3% a year and the guys in CNBC say no inflation trouble because somehow all those monetary rules and law do not matter anymore.

     

    I am tired of you being a party pooper and saying all this "Bubble" non-sense, this is COMPLETELY different than the housing bubble. We all know that this market is driven by a sound foundation and keen ties. Bernanke has said many times that it is not a bubble and he is the Fed chairman. That is the #1 bobble head of the group, he uses big words and is the chairman!

     

    The CPI, GDP and U/e are 100% truth and they say all is well.

     

    Gosh, gee wilikers, you guys act like these professional economists, whos job it is to study economics, cannot predict a massive market meltdown. If there was a slowing down expected, we would hear about it on CNBC in a fair and balanced way.

     

    And so what that the Debt is like 17 trillion, we can print that easy, in a day, problem solved.

     

    Moon just does not understand economics. He must have voted fro George Bush. He does not care about the poor and blah blah blah.. Womans rights... Low inflation... We need to go to war with Syria... He wants high interest rates and those greedy Republicans to cut medicaid.

     

    (I am being sarcastic Moon)
    5 Sep 2013, 08:39 AM Reply Like
  • dnorm1234
    , contributor
    Comments (828) | Send Message
     
    >And so what that the Debt is like 17 trillion, we can print that easy, in a day, problem solved.

     

    And income is $15 trillion.

     

    I know a guy with $10,000 in debt, and another with $500,000 in debt. Which one is in trouble?
    5 Sep 2013, 08:58 AM Reply Like
  • Morrison Marketing
    , contributor
    Comments (96) | Send Message
     
    Man, I just look around and see the growth. Low unemployment, drastic falling prices in consumer goods and increasing hours worked per week and real wages.

     

    The $85 billion is not needed anymore, we can start tapering.

     

    Banks have been making so many good loans, with down payments and high credit scores for mortgages.

     

    The growth is really in the air.

     

    And if you have not figured it out, American in Paris is absolutely right. Inflation is only 2% a year, that is why every company in the S&P 500 is not citing inflation as a concern for their costs and those price tags at Wal Mart sure are dropping.

     

    Blah Blah Blah. Lets go to war, there is not problem there. Obama is keeping us safe from chemical weapon users. Could you imagine someone using chemical weapons? How uncivilized. Everyone knows that the way you kill someone really matters and the fact that it happens around the world daily is not of concern.
    5 Sep 2013, 08:27 AM Reply Like
  • dnorm1234
    , contributor
    Comments (828) | Send Message
     
    It's a recovery, we aren't recovered. There is no instantaneous leap to boom times. It takes time. And the data, at least to me and others, says we're in the early stages of that. If you're going to wait until the economy is on absolute fire before you acknowledge that, you're likely to miss most of the upside. But, that's how the public tends to go.

     

    Keep investing like the apocalypse is around the corner if you want; that's your prerogative. Keep us updated on your results.
    5 Sep 2013, 08:50 AM Reply Like
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