By Clyde Noel

Investors were unfazed by the jump in unemployment figures last week and the market zoomed, bringing optimism back. The Nasdaq composite index posted its best finish in 10 months and the Dow closed at its highest since mid-January.

Companies have generated earnings by not hiring or firing, and not buying new equipment. They aren’t showing real revenue or growth, but investors seem happy with the results. Of the 30 issues that make up the Dow industrials, 28 were higher.

The S&P, which we don’t cover, is perhaps the most accurate representation of the overall market. Composed of the top 500 public companies, lately it has been sending a clear message - investors believe the bear is losing its grip.

For the last three weeks, the Town Crier index has escalated more than 80 percent. Last week, it was up 5.75 percent and for the year, 18.82 percent. The Town Crier index mirrors the Nasdaq and is loaded with Silicon Valley technical issues. A $50,000 investment on Jan. 1 would have resulted in a $9,410 profit today.

Sun Microsystems, a major source of proprietary servers, improved 15 percent last week on rumors it might be a takeover target. Its stock is trading nearly 95 percent below its all-time high set the summer of 2000. The company faces competition from companies making servers based on Microsoft as well as those running the open source Linus operating system. There are serious questions about Sun’s being a long-term survivor in the marketplace.

Analysts feel investors are forward-looking and not examining economic reports which they view as backward looking. The stock market is the place to be for investors with money to spend.

Enter Warren Buffet, who is downbeat toward the market. At Berkshire-Hathaway’s stockholder’s meeting last week he told shareholders: “I have not thought stocks were cheap for quite some years, The market is no longer as attractive since more buyers have flooded the market. If there is nothing smart to do, cash is the default option.”

As an investor, like I am, you have to go along with whatever the market offers; but three years of the bear makes it clear — Bull markets are more fun to play with.

Investors anticipate the Federal Reserve’s raising the interest rate that stands at a four-decade low of 1.25 percent. The Federal Open Market Committee will not sit by idly if the economy sinks further, but don’t expect any change on Tuesday.