Photo: AP Images
This morning was turning into a disaster. But then sentiment quickly turned.First the scoreboard:
Dow: 12,573, +162.5, +1.3%
S&P 500: 1,324, +15.2, +1.1%
NASDAQ: 2,843, +33.3, +1.1%
And now the top stories:
- European stocks plunged and government borrowing rates surged early in the trading session. At one point, the yield on the 10-year Spanish government bond surged north of 6.8 per cent, an all-time high during the euro era.
- Things bottomed out shortly after Fitch announced it was slashing the long-term issuer default ratings of 18 Spanish banks. “Spain is expected to remain in recession through the remainder of this year and 2013 compared to the previous expectation that the economy would benefit from a mild recovery in 2013,” wrote the credit rating agency. 14 Reasons Spain Is Turning Into A Disaster >
- It’s not completely clear what caused markets to turn around. Some news outlets began to speculate that more stimulus would be coming from the world’s central banks. Yesterday, SocGen economist Michala Marcussen wrote that further deterioration in the euro debt crisis could push more effective actions like expansion of the EFSF and ESM, the eurozone’s bailout funds.
- There was also word that the European Central Bank (ECB) was considering “establishing a European deposit guarantee scheme,” a move that would ease fears of devastating bank runs. MARK YOUR CALENDARS: Here Are The Next 9 Crucial Events In The Euro Debt Saga >
- First Solar surged today. The solar panel maker announced that it would be raising production activity in its German facilities after it saw an “unexpected surge” in demand.
- One of the big winners today was Seagate Technology. Last night, the hard drive maker announced that David Einhorn’s Greenlight Capital had boosted his position in the company. This also came as bad news to competitor Western Digital, which saw its stock fall.
- Don’t Miss: SCORECARD: How Blackstone’s Byron Wien Is Doing On His Big Predictions For 2012 >
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