[Southack]

"Neil Cavuto explained that because oil/gas are so high ($72) that the market sees this bad news as good news that the Fed won't raise interest rates anymore. Bad news os good news today. Confused?"

The official reasons for market rallies seldom align with reality. Cavuto is giving you the official version.

The real reason for the market rally today is that there is a rumor going around that China's President Hu is going to announce a major revaluation of the Yuan when he meets with President Bush while both are here in primetime.

[durasell]

When?

[Alberta's Child]

There was a great article on that topic posted here last week. It was quite fascinating, in that it suggested that allowing the yuan to float freely against the dollar would have some serious adverse consequences in the U.S. -- mainly because the yuan would likely decline against the dollar in the long term.

[Mo1]

The real reason for the market rally today is that there is a rumor going around that China's President Hu is going to announce a major revaluation of the Yuan when he meets with President Bush while both are here in primetime.

In English .. what does that mean to us?

[SAJ]

That'd be nice, if true. Not holding m'breath, though.

[familyop]

"The real reason for the market rally today is that there is a rumor going around that China's President Hu is going to announce a major revaluation of the Yuan when he meets with President Bush while both are here in primetime."

That's good news. Getting to know the Bogeyman (fear of competition and fear of future dollar instability surprises) can inspire more short-term confidence. A little more courage and calm could make the long term ride better, too. It would be nice if more investors would let it ride. Too many knee-jerk rate hikes haven't done much more than lower value in friendly countries relative to ours and doesn't really make us all richer in the long term.

[Dog Gone]

The real reason for the market rally today is that there is a rumor going around that China's President Hu is going to announce a major revaluation of the Yuan when he meets with President Bush while both are here in primetime.

Whoa, that would be big!

[billhilly]

"The real reason for the market rally today is that there is a rumor going around that China's President Hu is going to announce a major revaluation of the Yuan when he meets with President Bush while both are here in primetime."

And the market has one of it's better days on a rumor?

[Moonman62]

The real reason for the market rally today is that there is a rumor going around that China's President Hu is going to announce a major revaluation of the Yuan when he meets with President Bush while both are here in primetime.

The PPI came in low this morning. That is related to possible future Fed action, and it was the reason for the rally today. You're right that the reason given for rallies is usually nothing more than a Ouija board type guess.

[groanup]

The real reason for the market rally today...

PPI came in lower than expected. Bond market rallied early on the news. Later the Federal Open Market Committee release minutes from its March meeting. New wording indicating the end of rate hikes may be near. Bullish, bullish, bullish with a lot of shorts in the market.

As for your rumor it didn't do all that much to the dollar. As they say: buy it on rumor sell it on news.