Real Story: It's All Good

When both bad news and good news are good for stocks, that's a bull market. Plus, Cody Willard on chips and Frank Curzio on small-caps.
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When "bad news" is good for stocks and "good news" is good for stocks, that's a clear sign of a bull market, Aaron Task says on Tuesday's

Real Story podcast.

TheStreet.com's editor-at-large was discussing the market's resilience to Tuesday's weaker-than-expected existing-home sales and consumer confidence data, as well as

Target's

(TGT) - Get Report

cautious comments about April sales.

Such "bad news" was viewed as positive because it raises the odds of a

Federal Reserve

rate cut, Task says. The weak economic data weighed on the dollar, which has been a largely overlooked positive for big-cap stocks.

But a weakening dollar could pose problems for smaller-cap stocks, Task says, a subject he discussed with his first guest, Frank Curzio, author of

TheStreet.com's Stocks Under $10

newsletter.

Task's second guest, Cody Willard of CL Willard Capital, discussed the implications of

Texas Instruments'

(TXN) - Get Report

robust earnings and guidance late Monday.

"The

Applied Micros

(AMCC)

of the world, they're not showing growth," Willard says. "But Texas Instruments makes analog chips -- that's what's hot, that's where it's looking like the inventory glut has been worked through."

Based on TI's strength, Willard is bullish on other analog suppliers, such as

National Semiconductor

(NSM)

, which rallied sharply Tuesday along with TI, and other chip stocks, such as

Altera

(ALTR) - Get Report

, which also reported strong earnings.

In the remainder of the podcast, Task discussed the day's corporate news, including the latest developments in the

Apple Computer

(AAPL) - Get Report

backdating saga and earnings from

Amazon.com

(AMZN) - Get Report

,

Whirlpool

(WHR) - Get Report

,

Express Scripts

(ESRX)

and

Lexmark

(LXK)

, which fell into "the Geoff Tate zone."

Alcatel-Lucent

(ALU)

also warned, Task notes, but its stock rallied, embodying the "it's not the news but how the market reacts that matters" theme of the day.

Click

here to listen to the entire podcast.