Photo: AP Images
Finally, some volatility in the markets. Not that we were hoping for it.First, the scoreboard:
Dow: 12,801.2, -89.3, -0.7%
S&P 500: 1,342.6, -9.3, -0.7%
NASDAQ: 2,903.9, -23.4, -0.8%
And now, the top stories:
- Markets were surprisingly sanguine yesterday after Greek leaders reportedly agreed on austerity measures. It seemed that any sense of progress was completely offset by doubts. But today, things really started to fall apart in Greece. Greeks took to the streets and rioting turned violent. Meanwhile, the Greek government started to fall apart as leaders, including the deputy foreign minister and head of the Laos party, stepped down. Here’s How Greece Would Leave The Euro >
- The U.S. December trade deficit widened to $48.8 billion, a six-month high. This deficit was slightly wider than the $48.5 billion expected. Imports grew 1.3 per cent, outpacing the 0.7 per cent growth in exports. These 10 Countries Will Command World Trade In 2050 >
- The University of Michigan/Thomson Reutersconsumer sentiment index fell to 72.5, which missed economists’ expectation for 74.8. It’s worth noting that last month’s reading of 75 was a frothy one-year high. So sentiment may have been due of a pullback
- Stocks also seemed due for a pullback. Earlier this week, we reported that the CB OE volatility index, or VIX, was hitting lows, suggesting that complacency was high. Since then, the VIX has done nothing but go up, spiking 10 per cent today alone. Along with stocks, energy, industrial metals, and precious metals all sold off. The 10-year Treasury note yield fell back below 2 per cent.
- One bright spot in the markets today was LinkedIn. The online professional networking service published quarterly earnings yesterday and knocked it out of the park. Q4 revenue jumped to $167.7 million and EPS surged to $0.12. This compares to Wall Street’s expectations for $159.7 million and $0.07, respectively. Shares soared.
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