That is huge news for stocks because the whole downward movement of stocks the past week was due to the fed official from Dallas saying that QE was ending. Now Bernanke says otherwise. Confusing? Indeed. But Big Ben always gets his way with the Fed Committee, so QE is back on the table. This combined with a positive US consumer sentiment figure this morning (which flies in the face of the higher payroll tax and spiking fuel prices) provided a huge head fake for the markets which were heading lower this am. Housing sales was also a good figure. Sure, we have the exogenous events of Friday's Congress spending cuts and the Italy mess but the US economy keeps moving higher and stocks have QE. That's my take for today, anyway.
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