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Tuesday, May 26, 2009

Nikkei Opens Higher On Wednesday

The DOW gained 196 and the S&P gained 23.

"Consumer confidence" showed a big boost (whatever that means) and consequently investors freaked and traded like piranhas feasting on a pig (that is a horrible analogy).

What is consumer confidence?

From Wiki - "the degree of optimism on the state of the economy that consumers are expressing through their activities of savings and spending."

Based on this definition, people are saving and spending more money. Who are these people? Also how do these spending and saving people compensate for the millions who are now without jobs and incomes. That's a lot of spending and saving...

Reuters: Nikkei up as U.S. consumer confidence improves
...consumer attitudes jumped to 54.9 in May from a revised 40.8 in April, well above forecasts centered around 42.0, helping push U.S. stocks more than 2 percent higher.

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