Recession 'Technically' Over. So What: Today's Outrage

NEW YORK (TheStreet) -- I don't want to be a buzz kill, but all this excitement about the recession being "technically" over is premature.

This market wants so badly to keep gaining that it's only hearing what it wants to hear.

Yes, Fed Chairman Ben Bernanke officially declared the end of the recession. BUT, Bernanke also cautioned that the economy will continue to feel weak for a while to come.

That reflects the sorry state of the consumer at the moment, with more than 14.5 million Americans out of work.

On the corporate front, the weakness is being reflected across various retail sectors. Kroger's(KR Quote) second-quarter earnings declined more than analysts expected and the grocery chain lowered its outlook for the full year. Profit dropped 22% at Campbell Soups (CPB Quote) in its fiscal fourth quarter. Best Buy (BBY Quote) also reported a 22% drop in profit for its second quarter.

Meanwhile, the banking sector, which has been propped up by taxpayer bailouts and a crisis-inspired relaxation of accounting rules, is bracing for new capital reserves requirements.

It remains unclear how new rules will impact off-balance-sheet assets such as credit card debt and mortgages. This could set the market up for some negative surprises from big credit card issuers and mortgage lenders like Bank of America (BAC Quote), JPMorgan Chase (JPM Quote) and Wells Fargo (WFC Quote).

Lingering troubles like these need to factor into the long-term outlook. A "technical" end to the recession doesn't mean companies will suddenly start hiring again or that consumers will open their wallets more freely.

That said, there's nothing wrong with the market going up on some technically good news. As long as investors are keeping the fundamental facts in mind.

--Written by Glenn Hall in New York.