[US STOCK CLOSE] The majo
By[US STOCK CLOSE] The major indices posted solid gains, with bulls
charged up on better US capex demand signs. Gains were seen across all the
major sectors, led by energy, tech and industrials amid 4% rise in core
orders for capital goods as key proxy for business capex. That saw oil
rebound over $ 76 while tech gained on possible AMD as buy-target of
Oracle. The net flow lifted the S&P and Nasdaq over 2%, the Dow gained
1.9%. The buying sentiment was also fueled by better German Ifo biz
sentiment survey. Smaller gains were seen in telecom, utilities as Tsy
yields backed up from their lows. Mkt internals showed up-stocks swamped
losers by a wide margin but volume ran below norm, suggesting more spec
day-trading and short-covering than major funds in m/t allocation shift.
19:25 GMT – [US SPEAKERS' CORNER] Fed Chrm Bernanke speaking today after mkt
close on "Implications of Financial Crisis for Economics". Key to see if
he offers any color to FOMC meeting on their concern inflation is too
low. Richmond's Lacker does not seem to share that view, saying today a
1.5% inflation rate in his view is consistent with Fed's price stability
goal, also noting low inflation can persist for a while without leading to
deflation risk. Next week, Chrm Bernanke also testifies implementing new
financial regs along with other key regulators. There will be number of
other Fed officials next week to offer any add color on FOMC statement –
current voters Rosengren (Boston) and NY's Dudley along with Philly's
Plosser, Dallas' Fisher, Minn's Kocherlakota and Atlanta's Lockhart
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