US Stocks Advance Amid Federal Reserve Stimulus Optimism ; DJIA Adds 114

--Europe turns higher on optimism about Greece, Fed offsets Italy downgrade

--Stocks advance amid hope for Greek aid progress, further Fed stimulus

--US housing data gives another weak reading; shows slower home construction
Source wsj
Source CNN

"Greek difficulties have to a certain extent been discounted in the markets," said Lawrence Creatura, portfolio manager at Federated Investors. "There is a lot of pessimism already priced into stocks. The news will have to get worse if we're going to drive the market lower."

Hopes for a better turn for Greece overshadowed a one-notch downgrade of Italy's sovereign debt by Standard & Poor's, to A. The Stoxx Europe 600 finished with a 1.8% gain, its fifth advance in six sessions.

Yes ATS The stocks are higher today based on false optimism now if i remember when did the stocks do this the last time? since the markets dont have any good news the rally today was based on Ben and feds optimism!

Phew, that was close. Looks like we can all pack up and go home now. The world et konomy has been saved and looks like good times are again on the horizon.

The Dow erased most of the days gains at the end.
The markets are smacking against major resistance again so it won't be long until they come down again.
These past couple of weeks I have seen the word "Hope" plastered all over all the market headlines because thats all they can cling onto.
The markets will be very volatile tomorrow but whatever happens this will all end in tears sooner or later.

Ben and the Fed are doing nothing more than throwing out the word hope with a list of wishful thinking for the markets to grab on too. The idea that Greece and the other PIIGS are somehow going to make it is at best wishful thinking. It seems that the markets are living in a fantasy hoping things will get better. What will wishful thinking get you? Lets see, you can wish in one sack and poo in the other and see which fills first. Now if you find something that is warm sticky and stinks you know what you got. The markets have a poo sack in front of them while holding an empty wish sack. Lets put some more hopes and wishes in the sack.

IMF has slashed its outlook for the U.S. economy and global growth through 2012.

UBS looses $2 billion in unauthorized trading.

SoGen downgraded.

China State banks stop swaps with some European and French banks.

Yes folks everything is coming up roses, I can see it now, the US will turn around overnight, UBS will discover it actually gained $2 billion, SoGen will be just fine and China will get all warm and fuzzy with the EU. NOT!!!

If you do not have hard assets you will be stripped clean. The markets are partying on the Titanic and she has already struck the burg.

Just my $.02

The government and the Fed cooperate to provide artificial boosts to the market when they are faced with a plunge. I am not a big conspiracy theorist, but the Plunge Protection Team would be one of the few I tend to believe.