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Rosier-than-expected economic data helped drive a late day rally.But first, here’s the scoreboard:

Dow: +143
S&P 500: +9

And now the top stories:

  • Stocks started positive, turned negative, then staged an epic comeback.
  • Not only did the German government pass EFSF expansion, they did it with an overwhelming majority of votes.  Next up, Slovakia.
  • Two key US economic data points were better than expected.  First, initial jobless claims fell to 391k.  Not only was this below the psychological level of 400k, it was well below the 428k expected by economists.
  • The final reading for Q2 GDP came in at 1.3% versus the previous estimate of 1.2%.  Sure, this is old data. But if we can look back 3 months and say things weren’t so bad, who’s to say we won’t be saying the same thing 3 months from now?
  • Stocks exploded higher out of the gate.  But stocks quickly took a turn for the worse.
  • The Nasdaq was the first of the three indices to go red.  Some of the selloff in the tech-heavy index was blamed on AMD, which slashed its revenue guidance.
  • Netflix was another Nasdaq stock that took a brutal beating, plummeting 11%.  Some attributed the sell-off to quarter-end window dressing as fund managers dump the stock so it doesn’t show up on their quarterly reports to clients.  Also, Microsoft is in talks to offer paid TV services through XBoxLive.  This could be a major competitor to Netflix streaming service, which was recently separated from its DVD service.
  • Also, fears are escalating of a hardlanding in China.  A Bank of America report gave us a bunch of reasons to be worried.  Then a desk note from Goldman Sachs started to circulate reiterating the same concerns.  To make things worse, the Department of Justice may be looking into questionable accounting practices of Chinese companies.  Chinese names got crushed.
  • Speaking of Bank of America, the bank said it would start charging a $5/month fee on its depositors.
  • Don’t Miss: The Gloomy Presentation That Jeff Gundlach Delivered To A Fancy Crowd In New York Yesterday

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