Continuing talk over strong results at Intel and the prospect of improving PC demand continued to push the stock market higher where the S&P 500 rose nearly 1 percent to just over 940. IBM and Google added to the upbeat run of earnings, both easily beating estimates in news after the close.
Economic data was mixed: big improvements in jobless claims were dismissed as seasonal quirks tied to GM and Chrysler; Treasury International Capital data showed a net outflow of foreign investment but Chinese investment in Treasuries continues to rise; the Philadelphia manufacturing sector is improving for the most part but very slowly. Perhaps the clearest news was a solid gain in the housing market index which more and more is pointing to recovery for the sector.
Reports that CIT Group, refused a bailout and poisoned by toxic assets, will file for bankruptcy tomorrow had little effect on the market. Talk was optimistic, noting that the government must be confident that the financial sector and economy can comfortably absorb the failure. A member of the S&P 500, CIT is a major business lender, or at least apparently was