COMMENTARY | COLUMNISTS | GEORGE CHAMBERLIN

George Chamberlin's Money in the Morning

Much to the disappointment of the permabears, the stock markets staged a strong rally yesterday. The Dow industrials rose 619 points, snapping a six-session losing streak. The gain was 4 percent, the biggest one-day increase in four years. The rally was led by tech stocks including Apple (up 6 percent), Google (up 8 percent), and even Qualcomm (up 5 percent). It looks like the rally will be extended today thanks to an overnight rally in the Asian markets after a massive infusion of funds into the economy by the Chinese government.

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Of course, the folks at MarketWatch.com, owned by the Wall Street Journal, would like you to think the rally was just a pause in the complete collapse of the financial markets. Consider headlines on the website saying, "Why stock market correction isn't over," and, "This steep market swell may be dangerous to ride out."

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A couple of economic reports this morning provide evidence the U.S. economy is head and shoulders stronger than the rest of the world. The Labor Department reported initial claims for jobless benefits fell by 6,000 in the past week to 271,000. It marks 25 weeks in a row the number has been below 300K, the longest such streak in 15 years.

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Even more impressive, the Department of Commerce has issued a revised report on economic growth in the second quarter of 2015 and it shows a real pickup in momentum. Originally the report said the gross domestic product had gained 2.3 percent in Q2 but revised the number to 3.7 percent thanks to not only higher consumer spending but also business investments in buildings and equipment that were also sharply higher. The GDP numbers show the economy snapped back sharply from a weak first quarter held in check by unusually harsh winter weather.

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Another big drop in mortgage rates. Freddie Mac says the average rate on the 30-year fixed-rate dropped to 3.84 percent in the past week, down from 3.93 percent in the past week and the lowest level since May.
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Keep it up guys. The Little League kids from Sweetwater Valley will re-play the team it lost to on Sunday from Pearland, Texas tonight. A win will put the Bonita boys in the LLWS championship game.
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The best men golfers in the world tee it up today in the first round of the FedEx Cup championship, a series of events that ultimately will pay one golfer $10 million. The Barclays will be played in New Jersey with some interesting pairing. The biggest crowd will be following the three biggest stars in the game with Jordan Spieth, Jason Day and Bubba Watson grouped together. Also worth watching will be Rickie Fowler of Temecula playing with Charley Hoffman who learned his golfing skills while growing up in Poway.

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