Kudlow - The Business of America is Business

Larry Kudlow

Profits up, rates down, tax cuts, and a stock rally. Corporate profits are at all-time highs and bond rates in the Treasury market are virtually at record lows. That’s a good combination for stocks, and it helped trigger a 255 point rally in Wednesday’s trading. What’s more, a surprisingly positive read on the ISM August manufacturing report delivered a strong blow to the double-dip recession pessimism that has plagued investors for many months. Without question, the jobs picture is going to remain cloudy. There’s just too much uncertainty over the economy and the tax-and-regulatory threats coming out of Washington. Businesses can’t be sure about the costs of hiring. Meanwhile, over in housing -- our other weakest sector -- an inventory glut threatens further price declines. Read more here:

Kudlow - The Business of America is Business