Market Celebrates More Signs of Slowdown With Big Rally

Wall Street needed a miracle, and it got one. After failing to score a rally yesterday, the market received another strand of weaker-than-expected data that sparked an early-morning rebound. On word of a cooling economy, grateful investors entered the stadium and are ready for the show. But can this week's numbers keep Uncle Greenspan's band from ending on a sour note later this month?

Major Indices INDEX CHANGE % VALUE Dow 110.34 +1.1% 10,632.67 S&P 500 22.71 +1.6% 1443.31 Nasdaq 154.51 +4.5% 3555.42 Russell 2000 11.53 +2.4% 487.71 TSC Internet 48.82 +6.2% 840.45 NOTE CHANGE PRICE YIELD 10-Year Treasury 22/32 102 8/32 6.189%

By the looks of today's upticks, investors weren't contemplating that scenario. At 10 a.m. EDT, the Purchasing Managers' Index for May came in below expectations and boosted the market still deeper into positive territory. Coupled with yesterday's benign economic data, today's report gave further evidence that the Fed's mission to slow the economy might be bearing fruit.

"We're seeing pretty good conviction," said Brian Conroy, head of listed trading at J.P. Morgan. "In the retail sector, May same-store sales are looking a little light, which is also being taken as evidence that the economy might be slowing." ...