re: Stock Market

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Stock Market
Why is the stock market rising in past couple days?

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Actually the stock market was down significantly the last 3 business days prior to today with a notable increase today. The following is Morningstars Midday market report/perspective:
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U.S. Market
Stocks followed Europe higher at open and remained in the black at midday following statements from the European Central Bank as well as the implied possibility of more stimulus activity in the United States.

The ECB kept its key lending rate unchanged at 1%, which was expected, but the central bank's president Mario Draghi said the eurozone faces an elevated level of downsize economic risks, though he deferred any indication that the ECB would be willing to further assist struggling eurozone countries, particularly Spain and its banks, in the near term. With that said, he did indicate the ECB will continue lending banks as much capital as needed for up to three months and also that some ECB officials support a cut to the lending rate, which has remained constant during the last six months. Draghi also suggested that inflation will likel y stay higher than 2.0% for the year, while the eurozone economy is still on track to lose 0.1% as previously forecast. However, his outlook for 2013 only decreased slightly to expected growth of 1.0%.

Meanwhile, Federal Reserve Bank of Atlanta president Dennis Lockhart suggested that growth in the U.S. is no longer realistic and that the Federal Open Market Committee needs to be prepared to take action. This led to speculation that more accommodative activity could occur in the near term. More focus will be on the release of the Fed's Beige Book this afternoon.

Separately, U.S. nonfarm business productivity declined at a 0.9% annual rate for the first quarter of this year, a downward revision from the 0.5% decline reported a month ago. Unit labor costs also saw a downward revision to a 1.3% increase from the previously reported 2.0% increase. The productivity revision was higher than expected, while the labor costs revision actually moved in the opposite direction than economists had forecast. The slowing productivity and labor costs numbers coincide with the weak employment numbers reported last week.