Closing Bell: 08.29.07

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Closing Bell brought to you by Financial Times.
The market has been conditioned in this August stretch to reward the absence of apocalyptic news with large rallies. Today was no different!
-No hedge fund combusted (ok, Basis Capital admitted they were very badly burned, and Cheyne Capital needs a couple skin grafts)
-Every third fixed income trader at JPMorgan did not get shot (happened, a bit graphic)
-There was no flight to quality in giant diamond-covered skull investments (ok, so that also happened)
We cry uncle… we admit it (along with most market analysts), we’re as confused as you are.
It seems so many institutions were clicking their heels and wishing for a Fed rate cut in September that everyone drank the Kool-Aid and the major U.S. indexes were all up close to 2%. The Dow finished up 1.9%, the Nasdaq was up 2.5% on the day and the S&P 500 rose 2.2%.
Major news on the day included Altria trying to quit smoking (up 1%), Apple coyly announcing that they are going to announce something (up 6%), Big Lots getting bigger and lottier with a 4x profit surge (up 10%) and more ratings cuts for home-builders.
More hard core market pornography from FT Alphaville.

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