The U.S. markets continues its gain for 3 days!… Yesterday big time. The Dow rose 331 points, or nearly 2.6%, to its second-best single-day jump of the year. The S&P 500 followed suit, adding 2.9%. The Nasdaq outperformed nearly all sectors… launching 3.2%.
Coupled with Tuesday’s gains, markets staged their best two-day performance since October 2002.
But Goldman Sachs wants even more… “The increased risk of recession is likely to lead the FOMC to cut its federal funds rate target to 3% by mid-2008,” Goldman Sachs wrote to its investors recently, with a more temperate approach to a similar request made in Cramer’s now infamous tantrum this summer. “We believe such aggressive action is necessary to counteract the effects of the housing downturn and the associated credit crunch.”
The way things are going, their wish is the Fed’s command.
Yet according to ebullient quants at the Bureau of Labor Statistics, everything’s just peachy. Gross domestic product (GDP) in the third quarter grew at an unanticipated rate of 4.9% , they crowed this morning.
That rate beats the government’s own forecast by a full 1% and marks the strongest quarterly economic growth since the same quarter in 2003, and the second-best GDP reading since the height of the tech boom in early 2000.
Peachy. These numbers seem so clearly disconnected from reality… oy. We’ll follow up tomorrow.
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