Economic indicators came in mixed and yesterday’s bullish Europe rumour got shot down. But the market rally held on.
But first, here’s the scoreboard:
S&P 500: +12
And now the top stories:
- Tough talk from Treasury Secretary Geithner may have finally scared Europe straight. It’s now sounding like we’re closer to a euro-TARP. Almost rings of Hank Paulson circa fall 2008.
- And remember that CNBC rumour yesterday about the EFSF-sponsored SPV via the EIB? Well the EIB said they didn’t know what the hell everyone was talking about. DENIED. But it didn’t phase the markets in early trading.
- Also, a half hour before the markets opened, the July Case-Shiller Home price index came out just OK. The 20-city index fell 4.1%. But economists were expecting a 4.5% drop. Seasonally adjusted, prices were flat from June, while economists expected a 0.1% rise. Robert Shiller, the co-creator of the index thinks it could be a long time before home prices bottom. Nevertheless, optimists seemed to applaud one bright spot of the report: July prices climbed 0.9% mum on a non-seasonally adjusted basis, the fourth consecutive gain of its kind.
- The Conference Board said consumers weren’t as confident as economists expected. The reading climbed to 45.4 from 45.2 a month ago. Economists were expecting 46.5. The present situation index fell. But we suppose it could’ve been worse. There was, however, a bright spot in the reading. The expectations index climbed to 54 from 52.4 last month. Consumers are becoming more optimistic about the future.
- Two Fed manufacturing surveys came out today. First was the Chicago Fed, which showed growth and how the Midwest was outperforming the rest of the country when it came to manufacturing. The Richmond Fed survey was not quite as rosy. But on the bright side, survey takers were more optimistic about the future.
- Back to Europe, Slovenia approved an EFSF expansion. And Greece passed a new property tax bill, part of its path to austerity. Both were expected to happen. But they represented forward movement, albeit baby steps, toward a Eurozone resolution. Hope in Europe also sent the euro soaring.
- At the end of the day, there wasn’t a lot of mindblowingly great news. However, all indications showed things are not as bad as they could be. They certainly don’t seem to be getting much worse. For now.
- We’re stuck in a crazy rumour cycle. Here are the 11 most dramatic rumours from the past two weeks >
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