The Market Equilibrium Puzzle

This Friday we were treated to another Stupid Market Trick. The first-look US GDP number was announced, and at 2.2% was much weaker than the consensus of 2.5%, but after a brief sell-off the market rallied. The gains were not huge. The S&P rose a small 0.24%, and the Dow even less with a 0.18% gain, but the Nasdaq advanced by 0.61%--not bad for an economy that falls well short of expectations. The composition of the number wasn't any better than it seemed--in fact, the bear-tilting

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