Bad Economic News Pushes Up The Stock Market

Despite a spate of bad economic news, the equity markets continued their upward climb. I don’t know if it means anything but I never discount markets either, so maybe there is some sense that corners are being turned.

Here, however, from Market Watch is a synopsis of the data that came out today:

Stocks had slumped in morning trades after the Commerce Department reported orders for U.S.-made durables fell 6.2% in October, the largest decline in two years. Economists surveyed by MarketWatch had expected a drop of 2.5%. Read story.

Other early data included a 1% decline in consumer spending last month, the biggest drop since September 2001. See details.

First-time filings for unemployment benefits fell in the latest week, but the four-week average jumped to a 25-year high. Read Economic Report.

Another report from the Commerce Department had the sales of new homes declining an estimated 5.3% in October to a seasonally adjusted annual rate of 433,000, the lowest level since 1991. Read more.

Not surprisingly, consumer sentiment worsened in November, as job losses, falling incomes and evaporating household wealth made Americans feel bleaker than the month before. See story.

Those are numbers that suggest an economy in deep trouble but as the pundits keep reminding us, the market is forward looking.

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