Highlights
August 23, 2011
Talk that Ben Bernanke will unveil new policy moves on Friday helped pull the Dow up a very sizable three percent to 11,176. The Jackson Hole conference last year produced the first hint at QE2 and the markets are now pricing in a QE3 from the chairman or something like it. The talk completely overshadowed the day's run of negative economic data, from weekly chain-store reports, to the latest regional survey showing contraction underway in manufacturing, to a new home sales report that shows the housing sector to be stuck at the bottom.

Oil gained $2 to $86 on the rally in stocks. Demand eased for the safety of Treasuries where the 30-year bond rose five basis points to 3.47 percent. Demand also eased for gold which dropped $80 on the session to $1,825.