Morning Stock Talk - Farr: Continued stock gains are nonsensical

Michael Farr, president of Farr, Miller and Washington, tells Andrew O'Day there is nothing fundamental to justify Wall Street's unchecked march higher. "In March, people were willing to pay eleven dollars for every one dollar a share in earnings. Those same people are now willing to pay 18 for that same dollar a share in earnings - thinking what? That earnings are going to go up dramatically? Why?" Farr says economic reports alone such as today's cannot keep this rally going. "Consumer confidence is at sort of a 'Wait a minute, don't throw dirt on them, they're still breathing' level." Farr says one positive is the president's re-nomination of Fed Chief Bernanke. "It offers a great deal of consistency here."

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Dow Jones' MarketWatch Morning Stock Talk discusses the big stock movers, economic data and investment trends with Wall Street's top analysts, strategists and traders. Hear about what's driving the stock market from those in the know..