This whole feud has become quite funny and has exposed CNBC as the joke to which they are. But I digress…

Wall Street surged for a third straight day as the market recovers off of its lows of the bear market. the Dow rose 239.66, or 3.5 %, to 7,170.06. The Standard & Poor’s 500 index climbed 29.38, or 4.1 %, to 750.74. The Nasdaq composite index gained 54.46, or 4 %, to 1,426.10. Standard & Poor’s stripped General Electric (GE) of its AAA rating, citing the expectation for poor earnings at its finance unit, and assigned a “stable” outlook. Despite the news, the cut of only one grade sent the market higher as many thought the rating agency would downgrade the company further. In addition, the chairman of the independent Financial Accounting Standards Board (FASB) came out and stated that new guidelines will be set forth regarding the mark to market accounting rules that have hammered financial institutions.

Morning Outlook

After falling yesterday, markets overseas rallied to close out the week. Renewed hopes of additional stimulus measures sent Asian equities higher. Japan’s Nikkei 225 stock average jumped 371.03 points, or 5.2 %, to 7,569.28, and Hong Kong’s Hang Seng climbed 524.27 points, or 4.4 %, to 12,525.80. In Europe, the FTSE 100 index of leading British shares was up 62.70 points, or 1.7 %, at 3,774.76, while Germany’s DAX rose 36.85 points, or 0.9 %, to 3,993.07. France’s CAC-40 was up 42.72 points, or 1.6 %, to 2,736.97.

Here in the U.S., the rally looks to be sustained for the 4th straight day. Dow futures rose 79, or 1.1 %, to 7,195. Standard & Poor’s 500 index futures jumped 8, or 1.1 %, to 756.40, while Nasdaq 100 index futures rose 3, or 0.3 %, to 1,166. This is the first rally the market has seen since November. With a lot of money on the sidelines, a rally fueled by traders combined with additional economic/corporate news could put some confidence back in equities.

Economics Calendar

The Federal Reserve reported that household net worth dropped by a record 9 % from the level in the third quarter. The decline was the sixth straight quarterly drop in net worth an0% below its 3rd quarter peak in 2007 of $64.36 trillion

8:30 AM
International Trade: Measures the difference between imports and exports of both tangible goods and services. Imports may act as a drag on domestic growth and they may also increase competitive pressures on domestic producers. Exports boost domestic production. We have had huge trade deficits in recent years, with foreign countries able to produce goods cheaper. The trade gap is expected to contract to $38.1 billion in January on reduced demand for imports. The trade gap narrowed by $39.9 billion in December.

8:30 AM
Import Prices: The prices of goods that are bought in the United States but produced abroad for the month of February. These prices indicate inflationary trends in internationally traded products. The consensus is for a decline in prices of 0.8%. Lower demand, equal supply, results in lower prices.

9:55 AM
Consumer Sentiment: Consumer sentiment is directly related to the strength of consumer spending, by questioning 500 households each month on their financial conditions and attitudes about the economy. The consensus reading for March is 55, down from February’s reading of 56.3.