Bloomberg reports, “U.S. Stocks Rise for Week as Data Bolster Growth Optimism.”
U.S. stocks rose for a second straight week, with benchmark indexes reaching all-time highs, as data from durable goods to housing and employment fueled optimism that the world’s largest economy is strengthening.
Alcoa Inc. and Freeport-McMoRan Copper & Gold Inc. advanced at least 5.1 percent, pacing gains among commodity producers. Homebuilders rallied 5.5 percent as a group after sales of new homes topped forecasts. Apple Inc. added 2 percent after striking a deal to sell its iPhones through China Mobile Ltd. Twitter Inc. (TWTR) surged 6.2 percent amid optimism that the company has room to expand sales in digital advertising.
The Standard & Poor’s 500 Index (SPX) climbed 1.3 percent to 1,841.40 in the holiday-shortened week, setting a record on Dec. 26. The Dow Jones Industrial Average (INDU) added 257.27 points, or 1.6 percent, to 16,478.41. The U.S. market was closed Dec. 25 for the Christmas holiday.
The Twitter news is already outdated, even though I found this story on the front page of the Bloomberg site. The stock’s value sank 13 percent in a day.
But Americans don’t seem to care about the Twitter’s rise or fall or about the rest of the “good news” from the stock market. They think the economy is still bad.
From the Washington Times’ political blog: “Most Americans think economy is bad and don’t see it improving next year.”
The majority of Americans said the economy is still hurting and they weren’t optimistic for it to get any better in the next year, a CNN/ORC International poll released Friday found.
Nearly 70 percent of poll respondents said the economy was still in bad shape and slightly less at 66 percent said the only economic news they’d heard recently was bad news. A little more than 50 percent of those polled said they didn’t expect much improvement and still thought the economy would be suffering a year from now.
Only 32 percent rated the economy as good, the poll found.
I have a hard time believing that “the only economic news” some have really heard is bad news. I suspect they don’t bother to pay attention to the “good news,” or remember it, because they recognize it as the propaganda that it is.
As I’ve pointed out several times recently, the stock market is rigged by the Federal Reserve’s QE so that Wall Street makes big gains while the economy stagnates for the rest of us. Meanwhile, the Democrats ignore the cause and demand spread-the-wealth schemes to address the income inequality they are manufacturing.
Our economy is being run into the ground. No one should be optimistic about it.