Wait, that doesn't sound right?
Maybe companies like Coke, IBM and McDonald's aren't representative enough to gauge what's going on in the global economy? No, that's exactly why they represent 10% of the Dow Industrial Average.
So if America's largest industrial companies are showing signs of distress how do we explain today's buy everything strategy?
I alluded to the drivers in the morning but here's my summary:
* Stocks were weak after the release of questionable Chinese GDP data.
* Suddenly a rumor emerged in a Reuters story that the ECB could begin buying bonds again.
* This rumor was quickly refuted in the Financial Times but the damage was done as stocks were now above technically important levels.
* This led to further program buying throughout the day which never relented.
So to recap, stocks fell 9-10% to begin the month on fears that the global economy was faltering (seems to be evidenced in reports from IBM, Coke, McDonald's and others). A steady stream of leaks and rumors from the Fed, and the ECB have sparked stocks and caused them to soar 7% not in a year, quarter or month but in the past 4.5 days.
As Goldman Sachs noted tonight - "has the market, like the hare in Alice in Wonderland, gone mad?"
We shall see.