I'm talking about the stock market, which posted overall gains the last couple of weeks. It picked up nearly 500 points on Monday, then it lost 115 points yesterday. Today, the Dow Jones gained 1.2%, and S&P and Nasdaq picked up just under 1% each.
At the moment, it seems likely that the markets won't take the kind of hits that would be needed on Thursday and Friday to wipe out the overall gains in all three for the week.
As I've said many times before, I'm no economist. I don't know what this means. Does it mean the economy is starting to turn around? Will consumers start spending again, which will encourage employers to hire more people? Or will it prove to be a temporary reversal, followed by a steeper slide?
CNN's Alexandra Twin reports that "[a] pair of better–than–expected economic reports added to optimism that the economy is getting closer to stabilizing:"
- New home sales and
- durable goods orders.
But that's the thing, isn't it? Until it comes to pass, it's all theoretical.