Photo: By Trippography on Flickr
This weekend’s EU summit was a flop. But stocks rose anyway. Maybe it’s due to the anecdotal economic growth stories.First, the scoreboard:
Dow: +104.8 pts, +0.9%
S&P 500: +16.0 pts, +1.3%
NASDAQ: +62.0 pts, +2.4%
And now, the top stories:
- This weekend’s EU summit was disappointing. Yet, investors are trading as if a viable solution to the eurozone debt crisis is all but imminent. Among major developments from this weekend’s EU leaders’ summit was word that ECB involvement in leveraging the EFSF was ruled out. The meatier developments are expected to come out during this coming Wednesday’s EU summit.
- During the trading day, we got word out of Germany that a leveraged eurozone bailout fund would have over $1.39 trillion, which was roughly in line with expectations. We also got word that ECB was pushing for bigger haircuts on Greek debt held by private debtholders.
- Bullish economic data out of Asia last night reinforced the global economic growth story. China’s Flash PMI number suggested manufacturing activity in the country was accelerating. Also, Japanese exports rose at a better-than-expected 2.4%.
- Caterpillar, a global economic bellwether, gave some bullish news before the bell. The construction equipment maker announced earnings of $1.71 per share, which was way ahead of expectations for $1.55 per share. They also said full year earnings would come in at the high-end of guidance. Shares climbed.
- FedEx, another bellwether, said it expects a 12% year-over-year jump in shipments. To support this activty, the company will hire 20,000 seasonal workers.
- Oil and copper, some of the more cyclical commodities, had huge days. NYMEX crude jumped more than 4% to above $91 barrel. Copper soared 7%, and copper miner Freeport-McMoran jumped.
- We also got a couple of billion dollar M&A deals this morning. Oracle is buying software maker RightNow for $1.4 billion, a 19% premium to its Friday closing price. Cigna is buying Medicare services company Healthspring for $3.8 billion, which is a 37% premium to the Friday closing price.
- Netflix announces earnings after the bell. Follow the release live here>.
- Don’t Miss: A Fantastic Presentation On The Bull Case For Housing In 2012