The stock market staged its comeback pretty much on cue. It seems as soon as a little bearishness creeps into the market, an upside reversal is almost certain and quick to happen. The market was extremely oversold going into Tuesday's trading which allows almost any little good news to push up the market. Enter Wal-Mart...
Whatever Wal-Mart said was enough to start a wild frenzy of buying or at least that's what the media told everyone. We don't really think the Wal-Mart news had much to do with the big rally but WMT did move up on its own as well. The news from WMT could almost have been thought of as not very good news but that's beside the point. The media needed a reason for the rally and WMT seemed to be it...oh, well.
The news from Bank of America that came out in the morning, too, was not really very good either. BAC announced another $3 billion of losses due to the normal old news. The stock market thinks that the news is just more of the same with barely any consequences going into the future so BAC was up over 5%. Crazy.
Arithmetic index: 99.33
Market Cap index: 98.69