Investors are shrugging off worries of a future rate hike and stocks are up big to begin the day. The US dollar is down against most foreign currencies and the price of oil and gold are benefitting, both up solidly as well. International economic data has been generally upbeat with Europe's economy showing signs of recovery. Asia stocks are mixed. Problems continue to persist, but the market bears seem to be taking an early summer holiday, ignoring Greece, ignoring rising yields and also the foregone conclusion that the Federal Reserve will raise interest rates sooner than later. One key data point with a 'good news is bad news' implication is the fact that wages in the US grew by 5% in the first quarter of 2015. The Federal Reserve Bank has been looking at wage growth as a factor to determine when to pull the trigger of raising rates and this number points to a sooner than later rate hike strategy. Therefore, we might see the market give up some gains as the day wears on since the reason for this morning's rally is somewhat of a mystery.
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