Italy’s woes overshadow a relatively bright jobs number.First, the scoreboard:
Dow: -61.2 pts, -0.5%
S&P 500: -7.9 pts, -0.6%
NASDAQ: -11.8 pts, -0.4%
And now, the top stories:
- The focus of the European debt crisis is increasingly shifting from Greece to Italy, where the sovereign debt load is massive and borrowing costs are soaring. This morning, Italy’s Prime Minister Silvio Berlusconi claimed the IMF offered financial aid, but he turned it down. Why would he do that? Well, the answer to that question doesn’t matter. However, the IMF chief Christine Lagarde quickly said no such aid was ever extended.
- Meanwhile, the G-20 meeting in Cannes wrapped up today, and there wasn’t a lot of news. We did, however, learn that G-20 leaders came to no agreement on IMF aid to the EU bailout fund.
- Developments out of Europe stole the spotlight from a fairly bright October jobs report. Non-farm payrolls increased by 80k, versus the expectation of 105k. However, August and September figures were revised sharply higher. Also, the unemployment rate unexpectedly inched lower to 9.0%. Economists were expecting the rate to remain unchanged at 9.1%.
- Today, was the highly anticipated Groupon IPO. The stock priced at $20 per share last night, but it opened at $28. The pop wasn’t much of a surprise, given its low float and massive hype. However, GRPN closed at off of its high at $26.11.
- The MF Global story continues to get messier. Last night, the Wall Street Journal said the brokerage had engaged in month-end window dressing on its balance sheet. Also, no one can find MF’s missing hundreds of millions of dollars. Meanwhile, Jon Corzine finally resigned from his position as CEO.
- Bank of America fell 6.1% today. Last night, it announced it would issue up to 400 million shares of common stock to raise around $3 billion, which would be used to refinance debt. This would mean significant dilution to its shareholders.
- Starbucks was another big winner today jumping 6.7%. The coffee brewer said quarterly profits soared 29% to $358 million or 47 cent per share. U.S. same-store sales jumped 10%. And guidance was robust guidance.
- Meanwhile, Greece is currently preparing for confidence vote, which could end with the fall of Prime Minister George Papandreou. Follow the developments LIVE at Money Game >
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