Stock Prices vs. Economic Reports

Articles like this make me wonder, "How much of this is already priced into stocks?" Is there any new information in there that would send stocks higher? It seems like more of a look in the rear-view mirror, and stocks have risen because the market is a discounting mechanism for the future. That is, stock prices reflect where the economy is headed.

It is said that there is no working crystal ball on Wall Street. Maybe stocks are that working crystal ball.

clipped from www.washingtonpost.com Stocks Rise on Strong Economic Reports Positive economic news and a spate of takeovers helped propel stocks higher last week. U.S. manufacturing and service industries grew in June at the fastest pace in 14 months, the Institute for Supply Management said. Employers added 132,000 workers last month and the unemployment rate held close to a six-year low, the Labor Department said. The reports provided further evidence that a strengthening economy would sustain corporate profit growth. "There's economic reinvestment, and capital spending seems like it's showing a pulse -- that's a symptom of the economy's resilience," said Lawrence Creatura at Clover Capital Management in Rochester, N.Y. "Deals will still happen and that's good news for investors."