Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  FASB Surrenders on M2M, Stocks Rise
We don't know exactly why the stock market turned around yesterday, but it sure looks like FASB's surrender on mark-to-market accounting had a role.  At about 1:30 pm central time, the Dow was down 78 points and the S&P 500 was down 9.6 points.  But, at the end of the trading day, just a few hours later, the Dow closed down just 3 points and the S&P 500 was up 0.5 points.

The FASB news did not hit the WSJ or Bloomberg until after the market closed, but the decision was announced sometime around mid-day.  It's not a perfect match on a minute-by-minute basis, but is sure seems too coincidental to ignore.

The announcement of a House hearing, in Barney Frank's Committee, to address mark-to-market accounting, back on March 9, 2009 was the bottom of the stock market and the recession.  So, yesterday's stock market action would not be the first time good news on mark-to-market accounting led to a turnaround in stocks.

Click here to view the Bloomberg article.
Posted on Wednesday, January 26, 2011 @ 8:41 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.