MAY 4, 2005

To me, today's stock market strength stems from three factors. First, auto sales we pretty good in May, a 17 1/2 million annual rate. Fears that the economy is falling out of bed are not supported by this strong demand. Take heart, those in the soft patch camp. Secondly, the Fed is done for two months regardless of what they do at the next meeting. We have a respite. Third, oil inventories continue to rise. Crude finished up on the day, but with these numbers, we are not going to $60 anytime soon. So, if the economy can grow at 3% with oil at $50, and the Fed hasn't hurt the economy yet with talk that they are close to done, and profits are good. What's not to like. Thats the bull case that took the lead today.