Markets responded to better than expected earnings from Best Buy, a blow-out Treasury auction and Geithner’s Congressional testimony.
The Best Buy news evidenced consumers still thirsty for electronic gadgets and entertainment. I was in our local store yesterday and didn’t notice huge crowds, but the place did have four cashiers. That is probably two more than I witnessed in February. Entertainment expenses go higher when consumers restrict themselves of other goods, like clothes, cars, etc.
Geithner seemed like a changed man today. He spoke forcibly, with intelligence and departed a cohesive message. His arguments for central clearing of derivatives, registration of hedge funds and a sharper look at all financial instruments went over well. How he can put up with this huge committee is beyond me. But Barney does keep things moving along.
Some pundits are now thinking the S&P could reach 1000 during this rally. Closing today at 832, that could be optimistic.
It certainly appears the trillions of under invested dollars are finding a home in equities. I’ll go with the flow.
