So, will Greece get its bailout?.First the scoreboard:
Dow: 12,835, -97.0, -0.7%
S&P 500: 1,354, -9.1, -0.6%
NASDAQ: 2,934, -11.5, -0.3%
And now the top stories:
- Markets looked awful earlier this morning. An old UBS note was circulating that warned Greek GDP could fall by 50 per cent in one year if the country left the euro. This is bad because some experts see Greece making this exit. Yesterday, Citi slapped a 50 to 75 per cent chance of this happening. See Also – SOVEREIGN DEBT: A Modern Greek Tragedy >
- U.S. markets plunged 180 points early in the trading session. The rumour mill was cranking. Selling was exacerbated by a rumour that eurozone leaders were debating whether or not to extend bailout funds to Greece. However, that rumour was quickly put to sleep after the EFSF reportedly said that it would indeed extend the 5.2 billion euro bailout financing. More – This Is What You Need To Know About The Crisis In Greece >
- Elsewhere in Europe, Spain said that it would indeed nationalize banking giant Bankia. Meanwhile, Spain’s stock market closed at a 9-year low, a level that was first breached in 1997. Here are 10 horrible facts about Spain >
- Gold fell to around $1,590/oz, a four-month low. “I think gold is a reasonable thing to own at these levels,” said Jeff Gundlach during a presentation last night. See Also – BRAND NEW: Jeff Gundlach’s Big Presentation On Debt, Deficits, And The Economy>
- Disney announced better than expected earnings yesterday. Management attributed much of the quarterly strength to its Cable Networks business, which benefited from bowl games and extra NBA basketball games.
- Bearishness seems to be making a comeback. ECRI’s Lakshman Achutan appeared on CNBC this morning reiterating his recession call. He noted that his indicators, including employment, all seemed to be turning over. Last night, DoubleLine Funds’ Jeff Gundlach host a big presentation titled “Deficits Don’t Matter” in which he argued that deficits do indeed matter. Gundlach’s staying out of stocks until price-earnings ratios fall to single-digits.
- Don’t Miss: The 15 Worst Housing Markets For The Next Five Years >