US stocks extended their gains into a second session as traders eyed the Fed for possible further stimulus. Loan data out of China also gave rise to the hopes of just a soft-landing for the country versus a hard. This will help the US economy deal with any recession that emerges out of Europe. Earnings season is also helping thanks to a significantly lowered bar. If you go in expecting nothing to beat, any beats are pleasant surprises.

European concerns also moderated after yields dropped across the region. Still a concern, but investors kind of shrugged off Europe in favor of earnings season and Fed hints of further stimulus. Or at the very least their accommodative monetary policies will be in place for quite a while yet.

All the major indices closed higher on the day. The Dow jumped 181, the Nasdaq 39 and the S%P 19. [Read more...]