A strong profit report from sports giant Nike has juiced the overall market with indexes up over 1% to start the day. Usually one stock doesn't move a market, yet Nike's better than expected results remind us that perhaps the US and even global economies are not as bad as reflected in the last six weeks of trading. Adding to investor optimism is that 2nd quarter GDP was revised to an impressive 3.9% rate of growth, higher than projected estimates. Some of the shift from the negative momentum to the positive might be that Federal Chair Janet Yellen clarified her stance on raising interest rates later in the year. She is definitely in the camp that sees a strong economy that warrants a small increase later this year. That provides relief to investors and analysts in that it removes the muddled uncertainty that came with last week's Federal Reserve decision to leave rates unchanged. It would seem that this rally is the opening to what might be a resurgence of bull market enthusiasm. Oil is steady while gold is giving back some of yesterday's impressive gain. Interest rates are moving up based on Yellen comments.
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