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The Stock Market Has Fewer Reasons to Rise
Stocks and bonds are telling different stories about the future of the U.S. economy -- a contrast that is becoming harder to reconcile as the Federal Reserve gradually removes its support for the recovery. Last week, the Dow Jones Industrial Average registered five straight days of gains to reach another record high -- a trend that would typically reflect an improving outlook for the economy. At the same time, rising prices on longer-term Treasury bonds pushed down their yields -- a flattening of the yield curve that suggests disappointing longer-term growth and low inflation. Until recently, the unusual tendency of ... (full story)