Dow jumps on Bernanke Federal Reserve expectations … or Walker’s Wisconsin win

Yesterday, the Dow Jones jumped 2.37 percent and two media reports I heard late in the day specifically mentioned “expectations” about Federal Reserve Chairman Ben Bernanke’s testimony scheduled today … not the Gov. Scott Walker (R-Wisc.) [big] win the day before.

I don’t know much about the markets, but I do understand they react to current news and expectations for the future. My question is why – and I just saw this on referenced again on NBC’s Today Show at 7 a.m. ET – the media is referencing what Bernanke might say or do today in reference to the 2.37 percent Dow jump yesterday?

Since the Fed already has interest rates at historic lows, why not suggest Walker’s [big] win on Tuesday could be an indicator President Obama will not be elected for a second term … and the markets like it? That’s my speculation … how about you? Here is how the Associated Press explained the market jump. My emphasis in bold.

The Dow Jones industrial average surged 286 points Wednesday, its best day this year.

The rally started early and gathered force in the afternoon. The charge turned the Dow positive for 2012 and erased the biggest loss of the year less than a week after it happened: the 275-point plunge set off by a dismal U.S. jobs report on Friday.

The Dow gained 2.4 percent to close at 12,414.79.

The big jump followed weeks of losses. Hope that European officials would find ways to ease the region’s debt crisis helped launch the rally. News reports said Germany and European Union officials were considering a plan to lend money from the European bailout fund to help rescue Spain’s hobbled banks.

Jeff Kleintop, chief market strategist at LPL Financial, said the market appeared to be turning on rumors and speculation. But the chatter was enough to convince some traders that the worst was over for now.

If the Associated Press can speculate and “hope” European officials will get their act together (good luck), I can speculate Walker was the reason for the US market jump yesterday, and I think my reasoning has a better foundation. I’m confused I seem to be the only one suggesting this. (There may be other conservative writers suggesting the same thing … but I did a quick search on my news reader for articles including the words walker and dow and got no results.)

Meanwhile, CNN hits the news bias ball out of the park with the following headline.

Or maybe … Walker’s victory could bring more efforts to strengthen the state’s economy.

These are deliberate decisions being made by news journalists and editors. They needed to look for an explanation for the stock market jump in the United States, and instead of speculating Walker’s win had something to do with it, they speculate Europe’s economy might improve at some point … so therefore the Dow jumped 2.37 percent? Come on now…

Then you have the CNN Walker headline.

Can this be any more obvious?

10 replies
  1. Jeff S
    Jeff S says:

    Isn’t it interesting that when they were talking about Wisconsin’s? reduction in unemployment from 7.7% to 6.7% the left tried to sweep it under the rug by saying well people have left Wisconsin compromising taht data but when talking about the wonderful umemployment rate trend for the country.?

    However, maybe Wall Street is seeing?the results?in Wisconsin as a signal that things will begin to improve starting in Nov.? The people in Wisconsin have seen an?improvement in the states economy over the last 18 months reduction in taxes and didn’t want to change ship.???

    Wall Street looks at trends and in ’08 they gave more money to zero than McCain, and reports are that they are giving more money this year to Romney than BO.?
    The next question would then be, should the election go in November the way we expect it, who will get presidential pardons in January.

    • stinkfoot
      stinkfoot says:

      Funny how data is compromised by a supposed mass exodus from an area yet not compromised when people give up looking or their benefits run out.? Unemployment is no longer reported straight up- it’s spun- not to inform us of anything but in pursuit of a political end- and deliberately misrepresenting the situation tom do so.? A drop in the u3 rate is often not a good sign but the incumbents are? going to great lengths to try and convince us differently.? This does not reflect any level of concern for the people whose lives and livelihoods have been destroyed.

  2. Dimsdale
    Dimsdale says:

    My thoughts exactly!? There was no other significant event on June 5/6 to cause this.? The prospect of Bernanke dropping money we borrow from China on Europe, never to be seen again, can’t be a big incentive to invest.
    ?
    Wisconsin is the light at the end of the long dark Democrat economic tunnel.? Hotair has an interesting link to the pre- and post recall election coverage at PMSNBC, noting how it went from “the most important election evah, and will affect everything from dogcatcher to president” to “it is just a recall election and unimportant” etc.
    ?
    Isn’t that like a hooker saying “don’t mind the sores, they mean nothing?”?? LOLOL!

  3. dairyair
    dairyair says:

    Nice job, Steve! I’m embarrassed it didn’t occur to me. And as Stinkfoot noted, it’s all spin with the lame-stream media.

  4. ricbee
    ricbee says:

    The “Dow” moves only as a result of market manipulation. Has anything changed in the world economically since yesterday?

  5. JBS
    JBS says:

    Conversely, if what’s-his-name had won, the Regime would have blanketed the mainly-lame stream media crowing of the populist mandate they had been handed.
    Because the Regime didn’t win (Zero only Tweeted his support), they and the LSM want everyone to believe that there is no connection with anything, any thought that there is any connection with Walker is heaacy and,

    • JBS
      JBS says:

      ?
      (“D’ooh, stupid fingers!”) . . . heresy and, any agreement that Walker’s win means anything other than nothing will only get you declared dead (or at least irrelevant) by the DNC & the Regime.
      ?

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