Tons of earnings announcements and some economic data. But today was really all about Europe.
First, the scoreboard:
Dow: +162.4 pts, +1.4%
S&P 500: +13.0 pts, +1.1%
NASDAQ: +12.3 pts, +0.5%
And now, the top stories:
- A little after 9:00 am EDT, German lawmakers voted in support of a plan to leverage the European Financial Stability Facility (EFSF). Although this was widely expected, U.S. futures rallied on the news, setting up stock markets for a higher open.
- However, stock quickly dived in the first few minutes of trading when it was reported that talks on the losses private Greek bondholders will take are deadlocked.
- Earlier this morning, Bloomberg reported that the EFSF head was heading to China. This breathed new life into the possibility that BRIC countries could play a role in leveraging the eurozone bailout fund. However, people didn’t get excited about this until around 1:30, when more media outlets started publishing the story. The stock markets spiked on the rumour.
- Overall, not much came out of the EU leaders’ summit today.
- Some positive U.S. economic data flew under the radars today. The headline durable goods orders number was -0.8%, which was slightly better than the -1.0% expectation. Ex-transports, orders jumped 1.7%, crushing the expectation for 0.4%.
- New home sales grew 5.7% month-to-month to an annualized rate of 317K. Analysts were expecting 300k. In fact, some of the biggest winners in today’s market rally were the homebuilder stocks.
- Amazon.com was one of the biggest losers today, falling 12%. Last night, the online retailer posted earnings of 14 cents per share, missing estimates by a dime. The company also projected a Q4 operating loss. The company seems to be losing money on its new Kindle Fire.
- Ford reported Q3 revenue of $33.1 billion and adjusted earnings of 46 cents per share. Both figures beat expectations. But shares fell.
- Boeing, on the other hand, soared after it announced a huge earnings surprise. Q3 EPS jumped 30% to $1.46, crushing the estimate of $1.10. Management cut guidance for commercial aeroplane deliveries, but it raised full-year EPS guidance to $4.30 to $4.40. Analysts were expecting $4.27.
- Other major movers today included First Solar, who decided to announce earnings early after yesterday’s monster sell-off. Their Q3 numbers missed, but shares rallied.
- Meanwhile, the EU summit continues and you can follow live updates at Money Game>
- Don’t Miss: DECODING THE EURO-MESS: All The Acronyms And Abbreviations You Need To Know