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So what explains today's big rally, with the Dow now up ~200? Apple is rebounding, but its fall...

So what explains today's big rally, with the Dow now up ~200? Apple is rebounding, but its fall yesterday didn’t hurt the broader averages much. Banks are cranking up the dividends, but earnings are mostly lower Y/Y. Spain auctioned off short-term debt, but it had to pay through the nose. Maybe it's technical, as the S&P moved above its 50-day MA, or maybe it's history: stocks typically rally after Tax Day.
Comments (10)
  • Oversold bounce. Interest rates are still in place, cheap money. Operation Twist still in place. The Fed has tilted the markets up with as much leverage as they can.
    17 Apr 2012, 02:25 PM Reply Like
  • A better explanation is that the double dip recession idea is now completely discredited. US manufacturing rose 10.4% year over year during 1Q12.



    "Production at U.S. factories dropped in March for the first time in four months as the industry cooled following the strongest surge in three decades.


    Manufacturing, which makes up about 75 percent of industrial output, decreased 0.2 percent last month as appliance and furniture makers cut back, data from the Federal Reserve showed today in Washington. The decline followed a revised 3.4 percent gain from December through February that marked the biggest three-month jump since March 1984."
    17 Apr 2012, 03:44 PM Reply Like
  • AIP,


    I read the story. A good link. Where does it say the 10.4% figure you are quoting?


    I can't find it in there. The first sentence in the quote is interesting because why didn't it keep going up?


    The recent slowdown probably reflects the end of the 100% expensing tax credit that ended in December. Demand was pulled forward and restocking was done in Q1. The current demand seems to have gone down from that peak based upon the last month's numbers and the recent durable good's orders.


    We'll see if there is a rebound in April but most of the recent numbers are showing trend growth slowing but I agree a recession seems very remote at this time.
    17 Apr 2012, 03:58 PM Reply Like
  • Wind shift and faerie dust. Enjoy it while it lasts and celebrate by taking some profits here and there.
    17 Apr 2012, 02:25 PM Reply Like
  • The Rise of The Machines.
    17 Apr 2012, 02:27 PM Reply Like
  • Low volume and what there is of volume is only going towards a few large caps. Hardly a recovery.
    17 Apr 2012, 02:27 PM Reply Like
  • probably evil speculators or rich republicans or "big" oil
    17 Apr 2012, 02:28 PM Reply Like
  • notice its the first time in months that bob pisani and bill griffith are not heralding the robust obama recovery;
    look at treasuries
    17 Apr 2012, 02:30 PM Reply Like
  • I bet none of us on this board are investing in this market...we are just watching from the the games being played...up today by 200....down tomorrow by 200....the HFT computers own this market..
    17 Apr 2012, 02:58 PM Reply Like
  • I guess is just trading. Not good news from China, maybe is anticipation to a regulators reaction to europe's problem. Keep the currency printer running guys... hard to time the market but things do look pretty uggly in the old continent.
    17 Apr 2012, 03:05 PM Reply Like
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