Stock Index Futures Lifting Post Bernanke Speech

Ben to the rescue? S&P futures are up nearly 10 points, to 1480, Thursday night on the heels of Ben's speech. Fox Business Channel has the full transcript and video. Our favorite excerpt is as follows:

The incoming data on economic activity and prices will help to shape the Committees outlook for the economy; however, the outlook has also been importantly affected over the past month by renewed turbulence in financial markets, which has partially reversed the improvement that occurred in September and October. Investors have focused on continued credit losses and write-downs across a number of financial institutions, prompted in many cases by credit-rating agencies downgrades of securities backed by residential mortgages. The fresh wave of investor concern has contributed in recent weeks to a decline in equity values, a widening of risk spreads for many credit products (not only those related to housing), and increased short-term funding pressures. These developments have resulted in a further tightening in financial conditions, which has the potential to impose additional restraint on activity in housing markets and in other credit-sensitive sectors. Needless to say, the Federal Reserve is following the evolution of financial conditions carefully, with particular attention to the question of how strains in financial markets might affect the broader economy. Transcript

Home sales hitting 30-year lows, unemployment claims are jumping and the White House is throwing in the towel and calling for a decelerating economy. Economists are starting to handicap the recession odds unfavorably for the home team. Bill Gross was right, as usual, and Ben still has some work to do to catch up with the bond market vigilantes. Lets see if the gains hold into Friday's open.

Video after the jump

Bernanke’s Speech, Charlotte Chamber of Commerce
Fox Business

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