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The article reports that stock markets in the U.S. and abroad rose sharply on news that Germany might not insist Greece restructure its debt as a condition of receiving more financial assistance from Europe. Investors have feared that a restructuring could exacerbate debt crises in other struggling nations including Portugal, Spain, and Ireland.

The article discusses a return to financial markets of trading activity characterized by short-term movements determined by investor attitudes toward risk, a pattern much in evidence during 2010. Investors seeking to embrace risk have been buying stocks, while U.S. Treasury bonds are a popular refuge for those fleeing risk.

The article discusses implications of the U.S. Federal Reserve's decision to buy $600 billion in U.S. government securities over an eight-month period. An anticipated decline in yields could prompt investors to move funds from government bonds into riskier assets including stocks. Prices in futures markets indicate investors don't expect the Fed to start raising interest rates before June, 2012.

The article discusses the waning market impact of expectations that the U.S. Federal Reserve will announce a program to purchase U.S. government bonds on November 3, 2010. Stock prices rose during the several weeks leading up to November, but have begun to decline some as published reports indicate the program might not be as large as once thought.

The article discusses the investing climate two years after the collapse of investment bank Lehman Brothers Holdings Inc. in September 2008. Investors have gravitated towards U.S. Treasury bonds and other securities that provide reliable income streams. Investments in emerging markets have also gained in popularity. Conversely, holdings of equities in developed countries have declined by over $200 billion.

The article discusses the strong performance of bonds in comparison to stocks. While some believe this suggests stocks have become attractively priced, others think depressed stock prices reflect pessimism about the U.S. economy. A decline in private-sector borrowing could bode ill for the economy, and hence stocks.

The article reports that sales by hedge funds have contributed to recent sharp declines in security, currency, and commodity markets. Investments in commodities, high-yielding currencies, and stocks had been informed by the view that global economies would continue to recover. Factors including a debt crisis in Greece have called that view into question.

The article discusses the rising stock market. Over a three-month period the Dow Jones Industrial Average has gained about 34%. In addition to stock purchases by money managers, government efforts to revive the economy have also contributed to the rise, as some government funds injected into the economy have been invested in financial markets.

The article discusses implications for the stock market of the U.S. government's takeover of Fannie Mae and Freddie Mac. Although stocks could get a short-term boost, they will still be vulnerable to news stemming from a deteriorating housing market in the U.S. Bruce McCain of Key Private Bank believes more needs to be done to increase the banking system's liquidity.

The article discusses how correlations between certain types of investments have been breaking down. The expected relationships between such pairings as energy stocks and financial stocks, and oil prices and the U.S. dollar have not come to fruition in recent market action. Paul Chappell of currency-trading firm C-View, notes that correlations are usually strongest over short periods of time.

The article discusses investors' tepid response to interest rate cuts by the U.S. Federal Reserve. During the week of January 21, 2008 the Federal Reserve enacted the largest rate cut since 1982, yet stocks have not responded favorably. Some believe that problems facing U.S. financial markets are too big for rate cuts to deal with quickly.

This article reports that stock traders are concerned about the closing of stock and commodities markets on Good Friday 2010 because it is a day that bonds can be traded, and it is also the day that the government releases its jobs report for March.

The article explains why a recent recovery in the stock market is unlikely to discourage U.S. consumers from increasing their savings. Although rising stock prices have helped boost household net worth, that figure has still declined some $12 trillion over a two-year period. With household debt at over 120% of disposable income, consumers will probably continue their efforts at paying it down.

The article discusses jobless claims in the U.S. and stock in Tiffany & Co. Although economists expect weekly claims to fall below 500,000 for the first time since January, 2009, that figure suggests job creation in the U.S. economy continues to be weak. Having risen in value more than 100% during 2009, shares of Tiffany could continue to climb if the firm offers an optimistic outlook during a quarterly earnings report.

The article compares and contrasts present economic conditions with those of October, 1983. Common features include high unemployment in the U.S. and a rising stock market. In 1983 stocks were cheaper than they are today, though, and the Federal Reserve had much more room to cut interest rates. Household debt was much lower than it is today.

The article discusses the share performance of dry-bulk shipping firms and what that suggests about the state of the economy. Although one index of commodity prices has risen over 40% since March, 2009, shipping stocks have not performed nearly as well. The disparity suggests global demand may not be as strong as some think.

The article discusses prospects for Caterpillar Inc. Although Caterpillar stock's healthy gains during 2009 make it vulnerable to a correction, the long-term outlook appears promising. A weak U.S. dollar helps Caterpillar gain sales overseas, while rising commodity prices create demand for the firm's mining equipment.

The article discusses value lost in the Standard & Poor's 500 (S&P 500) stocks. Since October 2007 shares in the S&P 500 have fallen by a combined $4.8 trillion. Of that figure firms in the financial sector account for over 25%. Since the collapse of Lehman Brothers in September of 2008, shares of companies in the energy sector have declined by about a half-trillion dollars.

The article discusses potential market-moving news for the week of July 26, 2009. Although almost 30% of firms in the Standard & Poor's 500 will issue quarterly results, these could be overshadowed by a raft of economic statistics including those on new-home sales, consumer confidence, and orders for durable goods.

The article discusses the stock market. Although shares have risen sharply amid a current bull market, corporate earnings may need to start showing improvement before stocks rise much higher. A troubled banking sector and frugal consumers could exert downward pressure on earnings, though. John Truschel of Boston Company Asset Management does not believe earnings will rebound strongly any time soon.

The article discusses investors' reactions to policy decisions by the U.S. Federal Reserve. Treasury bonds rallied sharply in March, 2009 after the Fed said it would buy up to $300 billion of them. Stocks have risen in response to several recent Fed decisions. It is unclear what the Fed will announce at its June 24, 2009 meeting.

The article discusses whether recent movement in the Dow Jones Transportation Average (DJTA) presages a bull market. Although some technical analysts say it does, the DJTA has falsely signaled a stock-market rally before. Although data on loads for railroad cars recently reached their highest levels in 9 weeks, they continue to follow a saw-toothed pattern with a distinct downward trend.

The article discusses private-equity and hedge-fund firms Fortress Investment Group and Blackstone Group. After going public in 2007, the shares of both companies have declined over 60% in value. However, hedge funds have outperformed stocks since an ongoing financial crisis began, suggesting that Fortress and Blackstone could enjoy improved performance in the future.

The article discusses prospects for Exxon Mobil and Chevron. Both are expected to reports substantial declines in earnings for the first quarter of 2009. Shares of both are underperforming the Dow Jones Industrial Average as investors have apparently shown more interest in riskier stocks, in the view of analyst Fadel Gheit.

The article discusses technology stocks. During the week of April 20, 2009 several firms will report quarterly earnings including Apple Inc., Amazon.com, and International Business Machines. According to one survey technology shares are very popular with managers of global funds. During 2009 shares of Apple and Google Inc. have risen 45% and 28%, respectively.

The article discusses rallies amid an ongoing bear market in stocks. Since September, 2007 there have been three separate intervals where the Standard & Poor's 500 stocks gained at least 15%. Such volatility is typical in bear markets, although rallies during 2007-2008 have been notably brief. In historical terms stocks are inexpensive, although they could get cheaper still.

The article discusses signs that the Dow Jones Industrial Average (DJIA) could be due for an upward move. That the DJIA has fallen 32.6% below its 200-day moving average -- a level rarely achieved -- suggests it could rally soon. Trader Michael Panzner thinks a near-term "bounce" could occur soon, although he continues to be pessimistic for the long term.

The article discusses corporate debt in the U.S. Although new issues of investment-grade debt were robust in December of 2008, during 2009 over $750 billion of old corporate debt will become due. Much of this will have to be refinanced, and at interest rates substantially higher than before. Defaults from firms unable to refinance could help keep stock prices down.

The article discusses prospects for financial stocks in 2009. Financials significantly underperformed the Standard & Poor's 500 index in 2008, and several factors including a recession in the U.S. and falling long-term interest rates continue to present challenges. Bill King of M. Ramsey King Securities is skeptical that bank lending will be robust in 2009.

The article discusses divergent behavior between credit and equity markets. Since mid-December, 2008 spreads between junk bonds and U.S. Treasury bonds have narrowed, suggesting that risk aversion among lenders has decreased. However, stock prices have failed to respond positively to this development. Several possible explanations are offered.

The article discusses the difference between firms' operating earnings and net income. The latter includes all revenues and expenses, whereas the former strips out non-recurring items, which can have a sizable, negative impact during recessions. In terms of valuation, stocks in late 2008 appear cheap relative to operating earnings, but expensive when reckoned in terms of net income.

The article discusses shares of FedEx Corp. as a bellwether for stocks. Shares of transportation companies tend to rise prior to a recession's end, and FedEx's have appreciated almost 13% since November, 2008. However, continued difficult economic conditions marked by corporate cost-cutting and tight credit markets suggest gains in FedEx could be premature.

The article discusses the market outlook for the U.S. as inferred from the prices of stocks and bonds. Although the earnings yield for stocks seems reasonable relative to bond yields, that yield is based on estimated forward earnings. If those estimates prove too optimistic, stocks could experience a substantial decline before their earnings yield is once more aligned with bond yields.

The article discusses the prospects for the stock market. Although economic data to be released the week of November 2, 2008 will likely confirm continued economic weakness in the U.S., stock prices have been pushed so far down that they could well continue a recent rally. However, Brian Reynolds of WJB Capital Group believes any gains by stocks would constitute a bounce within a broader bear market.

The article discusses earnings prospects for oil companies. BP, Exxon Mobil, Royal Dutch Shell, and Chevron are expected to report cumulative net income of $35 billion for the third quarter of 2008. Falling oil prices will likely reduce profits for the fourth quarter, although analyst Jason Gammel believes stock prices for major oil companies more than reflect that decline.

The article discusses the significance of a massive selloff in stocks on September 29, 2008. Although shares recovered some the following day, trading volume and the number of issues participating in the advance were relatively weak. With credit markets in difficult circumstances, it is not likely that stocks can enjoy a sustained rally any time soon.

The article discusses implications for stocks of a 9% decline in the technology-laden Nasdaq Composite index on September 29, 2008. Technology stocks had fared relatively well up to that point. The revelation that technology firms are not impervious to credit market turmoil in the U.S. could indicate difficult days ahead for the broader market.

The article discusses seemingly contradictory signals being given by the stock and bond markets. Since July 15, 2008 shares have risen in price even as spreads between corporate bonds and the 10-year U.S. have increased. Some analysts believe widening spreads reflect corporate deleveraging rather than expectations for a worsening economy.

The article discusses the disconnect between stock prices and corporate earnings. Historically share price movements reflect earnings developments six months in advance, but the relationship seems to be breaking down. Contributing factors include hedge funds concerned with short-term results, and growing numbers of firms that don't offer earnings guidance.

The article discusses whether stock markets have reached a bottom and are poised to move upward again. At the nadir of previous bear markets, a volatility index tracked by the Chicago Board Options Exchange surpassed 35. That this index stood at just 22 on July 29, 2008 could indicate a sharply-defined market bottom may not materialize.

The article discusses the nature of earnings reports issued for the second quarter of 2008 as of July 28, 2008. Results suggest that companies in the Standard & Poor's 500 index will see earnings per share fall an average of 17.9%. Bank earnings have been particularly weak, while energy companies have reported strong profits.

The article notes a discrepancy in opinion between security analysts and investors concerning Honeywell International. Analysts anticipate that the firm will report 22% earnings growth for the second quarter of 2008. However, shares of Honeywell have lost 17% of their value during the past two months.

The article criticizes commentary by U.S. law makers aimed at speculators and short-sellers. Research performed by Owen Lamont indicates markets can get over-priced if the actions of short sellers are curtailed. The author also notes that, when technology stocks soared in price on the strength of speculation during the late 1990s, few complained.

The article discusses shares of General Electric Co. (GE). Stock in GE has appreciated little since July of 1998, and was punished severely by investors when the firm failed to meet analysts' expectations with its earnings report released in April, 2008. Any improvement in GE's share performance may have to await better overall economic conditions.

The article discusses the recent, superior investment performance of "momentum" strategies whereby investors purchase stocks that have enjoyed healthy price increases. Shares of firms that deal in commodities have done particularly well but, the author notes, could be vulnerable to a rapid reversal.

The article discusses the role of the U.S. Federal Reserve in creating financial "bubbles." Some believe the failure of the Fed to sharply raise interest rates at opportune moments has helped create bubbles first in technology stocks, then in housing and commodities. Although rising commodity prices have provoked higher inflation, the Fed indicated on June 25, 2008 it was in no rush to raise rates.

The article discusses implications of poor stock market performance by financial stocks. Since a market high of October, 2007, financial stocks have declined 30% in value. Some analysts assert that, given the large number of financial firms and their importance to the economy, it is unlikely that stocks in general can rise much if financial stocks are not also doing well.

The article discusses recent stock market activity as of March 10, 2008. Several major indices have again approached lows that occurred during a selloff in January. Selling since then has been brisk, although not marked by panic. Options traders are pursuing a course of action consistent with expectations that stocks could be headed lower.

The article discusses earnings reported by technology companies for the fourth quarter of 2007. Technology firms in the Standard & Poor's 500 (S&P 500) index seem poised to collectively register a 26% gain over the year-ago quarter's earnings. However investors seem to remain skeptical, given that the Nasdaq has not fared as well recently as the Dow Jones Industrial Average or the S&P 500 index.