There's pent up optimism that the next couple of quarters should be OK for corporate America and the economy because the interest-rate environment has stabilized.
I think what you have is a manic market. The market reacts differently to the news each day. One day it's sure of a strong economy and controlled inflation; the next day, it reads higher rates from the Fed.
I think it's the same old story: The economy certainly surprises us by how resilient it is. It's also a question of how the market interprets those numbers. I think it'd rather see a stronger economy with higher interest rates.
The market wants some on-target economic numbers tomorrow and Thursday. We want an equilibrium in the economy. If the numbers are too strong or weak, the interest rate debate would rage on. The numbers need to show moderation.
The market is concerned with the housing numbers. There seems to be a trend setting in. Housing and the consumer have been the engines of the economy and if that's slowing or fading quickly, there are going to be ramifications for the market.
(Commodities prices rising) would certainly seep through the economy, and the Fed is going to hike rates to keep that inflation under control.
It certainly has been an up week overall. The market is stepping back and looking at the fact that inflation is in check, we are near the end of the rates-tightening cycle and the economy is growing.
Given the rise we saw, it shows you the importance of interest rates and what the Fed thinks. This gives us hope that the Fed will be sensitive to the economy and we can get back to that nice 'Goldilocks' economy where growth is just right.
It shows you the importance of interest rates and what the Fed thinks. This gives us hope that the Fed will be sensitive to the economy and we can get back to that nice 'Goldilocks' economy where growth is just right.