Up to this point investors are seeing better than anticipated second quarter earnings. Optimism is back and the markets have shown gains.
The articles are in agreement about a modest return to normalcy from the severe credit crunch of a few months ago. This is good news.
When you combine a return of easier bank inter lending and better than expected second quarter reports, there is a renewed interest in equities. Money is moving back into the stock market.
We know the bad news, the foreclosures, the unemployment. Still the economic climate is improving and a much greater disaster is no longer feared.
Reuters: Stars align for easing of U.S. credit crunch
"There was pricing of tremendous systemic risk in the marketplace at the beginning of the year...A lot of that has been taken out of the market and that risk has also come down dramatically."Reuters: Futures edge up on earnings; jobs data on tap
"Earnings could get choppy as this reporting season continues because the production side is stronger than the consumption side, and production-oriented companies tend to report sooner than consumer-oriented ones..."
...investors will look for clues on whether the pace of job cuts is slowing when the Labor Department releases first-time claims for jobless benefits for last week at 8:30 a.m. EST
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