Stocks on Track for Best Month in Decades

Ellen Braitman explains what's behind the historic rally.
8:31 | 10/31/11

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Transcript for Stocks on Track for Best Month in Decades
Dow futures were trading sharply lower this morning joining me now to discuss all the business headlines. At this -- Alan -- and from Bloomberg TV good morning Allen happy Halloween to you know hey Stephanie to get dressed -- -- -- your baby just up and try to get at my baby dressed as a cow I'm gonna go as a cow girls. At a higher later. Yeah yeah. OK let's get into its stock futures were -- -- it is an island BSE is still ahead it. For its best month since 1970 hours -- what's being had been driving. This month's gains and what's happening now yes. So right now we are opening lower as you indicated we're down about six tenths of a percent for the Dow as well as the S&P. The roof Friday we did have the S&P of 14%. For the month of October it's the best month you've seen. For that benchmark since 1974. A lot of it as we saw last week house to do on this -- new European -- or beefed up bailout fund in Europe also. We've got corporate earnings coming in better than expected on average companies in the S&P 500 that had reported their results for the most recent quarter. Are showing profit growth of 19% on average. And the majority of them. -- show that we're on track to have the eleventh consecutive. Quarter of profit growth so folks are looking around the landscape looking at the losses we had earlier and -- year and saying maybe. The extent of that was a little bit overdone. OK so those positive things the markets trading about 121000 right now but -- about 75 points. Is that sentiment being -- acting out or seeing. Yeah I think that's a really good point because the issue as we did have the euphoria last week and then on the second day after. That meeting came out with the European leaders -- spoke started to say okay what are all the and what's happening is we have the spill over into the new week is folks are saying. -- any European countries really going to be able to raise the money that's needed for this expanded find and -- -- got the G-20 meeting happening later on this week in France so. He's a lot more question marks and questions that are really being raised this week so. Exactly as you sat you know folks are not feeling as -- today OK but all stocks had a good month. And the same goes for oil and gold what's behind -- this roiling goals. Yeah -- -- oil you know we're gonna start feeling -- we certainly are at the pump because oil prices are up about fifty in the 15% range for the month of October. Spot gold was higher as well you know -- -- different reasons your gold for example had a very big sell off in September it was off 11% in September so some of that. Was -- kind of a bounce back in some people saying that was -- -- we still want a safety play. -- in terms of -- -- getting numbers that show even though we do have slowing growth for the economies around the globe. We're not in recession in a lot of places keep in mind last week when we got the GDP report for the US and it showed in the most recent quarter. The US expanded at a two and a half percent pace that was as strong as we -- seen in a year. So oil is going to be a reflection there of what's happening with the economic news got to see it at the pump as you said Helen Wright despite these recent gains in stocks bonds. Have actually outperform stocks over the past thirty years something it hasn't happened since before the civil war what are the implications for investors. I know from the 1860s it's really incredibly -- we look at these -- -- classes over long periods of time. And what's happened now is we're -- that long term treasurys -- -- something like eleven point 8%. On average over the past thirty years in stocks below that in the ten point and a half percent range. And what's happened is a few -- he had just -- you think interest rates can't go even lower they do. And then also we have seen since the financial crisis. US consumers starting to -- more put more money away. And when they do that where's the money out often goes into the treasury market one reason that those -- keep going down besides the fact that the Fed -- left interest rates near zero. So those are few of the factors -- -- -- Even -- we have these tremendous. Waves of selling like we did during the financial crisis people -- our long term are stocks still. The right place to be and typically they have been but now you've got this really stewardship. That house and for this thirty year period -- as -- said. We not seeing that. Since then you know in -- not need a hundred years is really interesting context actually -- -- let's -- -- -- now Japan on made -- move today to lower its currency what exactly did the government knew and why. -- in this is the third time Japan has done this this year what happened was. The Japanese yen has been doing extremely well once again last week hit the highest level against the US dollar weeks and since -- -- seen since World War II. And what happens with what any. Country's currency gets too expensive they say it's gonna hurt our company is. That export our products become more expensive outside our borders and I Japan is concerned about that because -- have in very fragile. Economy there. And so this Central Bank stepped in. To sell a massive announced yet when they. For all of -- its own currency out there it's the market it's gonna depress the value and today they did that I. About four point 3% -- Out while we're discussing what's happening -- season currencies what's the latest on your debt crisis -- kind of -- activists earlier. It's exactly the question -- where is this money going to conference that we have that's starting to. Get together in -- -- it happened Thursday Friday for the G-20. You had on for example today some of the the main countries out there in Europe selling bonds Italy and Spain bonds for example. They were declining -- -- -- we're going higher and that's going to be a reflection. The fact investors. Are taking on and feel like they're taking on more risk and they want to be paid more. In order to -- -- these -- OK let's switch gears here at -- today but Macy's Elena -- making plans for the day after Thanksgiving. Tell us what they're planning for -- for Black Friday this year. So -- came out and said that for the first time ever it's an open most of its stories at midnight. Target came out last week and talked about midnight openings at. You know in reaching here is given that again -- were against fragile economy given how fragile things are. We had the retailers have to do not only more sales -- -- more -- next. Midnight openings have been part of them because they're trying to get that that excitement in the shoppers in the door and if they offered the specials may -- people do the bulk of their shopping when they come in the door so. Macy's is now joining kind of this campaign here. Two story that holiday shopping season a few hours earlier so hoping that bodes well put in the desert after the Turkey and head out to the story. That is a good way to burn calories let's be -- Actually even -- about the iPhone four has been incredibly hot seller but now some users are noticing a drop back into the -- I'm curious what you gonna tell me. -- this is a report out of some not papers in England the issue has to do with location services -- even when it's not actively engaged -- airport it's constantly apparently checking your location and therefore draining the battery is potentially so that's what some of the reports are saying perhaps not -- I have noticed my new phone's battery power hasn't been as strong as. And anything else to keeping an -- on today on. You know it's really -- It's an interesting of course we're gonna watch the dollar the dollar index -- a more than a percent a lot of that of course is going to be what's. What happened in Japan and just in terms of the stock check right now we have the Dow down 1% the -- 3%. As is the NASDAQ and MF global -- this is the firm that's head by the former co head. About Goldman Sachs and former senator and former New Jersey governor Jon Corzine it's -- hanging by thread it's trying to find a buyer for all or part of that it had massive exposure two holding European bonds -- -- big loss on that and this morning of breaking news. Is that the New York Federal Reserve said it's not going to be doing business with MF global -- told -- firm. Can prove that it can act as what's known as a primary dealers -- -- -- Al they're able to. Find a market for US treasury so we're waiting for developments on that I bet mr. -- -- state and politics can't. On taking longer look at the -- -- -- you talked about it down more than up -- percent right now hopefully won't be too scary of David. Since you put me on the spotlight what you going to be for Halloween -- if you want. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

This transcript has been automatically generated and may not be 100% accurate.

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