STOCKS STAGE GIGANTIC RALLY, AS S&P DOWNGRADE FADES AWAY: Here's What You Need To Know

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Photo: jessica @ flickr

Remember the outlook downgrade? Remember everyone freaking out about two weeks of market selling? Neither does the market.But first, the scoreboard:

Dow: 181.91
NASDAQ: +57.86
S&P 500: +17.66

And now, the top stories:

  • The talking heads are still talking about the S&P downgrade, the debt and the debt ceiling, but in the meantime, the economy is getting more good news. Strong earnings from the likes of Intel, Wynn, and Yahoo last night, and UTX this morning all lit a rocket underneath this market.
  • Futures rallied after the bell on Tuesday, and Japan saw big gains. Those big gains spilled into huge gains in Europe, which saw another day free of doom headlines, and that spilled into more big gains in the US.
  • Not too much actually “happened” today. Existing home sales were a little better than expected, so that helps. And there were the aforementioned earnings. The real story of the day was the huge surge in stocks, and the wire to wire victory.
  • Of course you got everything you’d expect from a huge “RISK ON” type of day. Silver went wild again. Gold did well. Oil did well. And some of the bid came out from under Treasuries. The dollar got totally drubbed, pushing the euro back near highs of the year.
  • Fore more on the big topic of the day — the US debt situation — see this report from JPMorgan >
  • After the bell, all eyes are on Apple earnings.

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