Remember the S&P downgrade? Neither does the market. This was business as usual from start to finish.But first, the scoreboard:
S&P 500: +7.32
And now, the top stories:
- Well, obviously you can’t talk about the “day” without going back to yesterday’s big downgrade from S&P. Not only did markets slide yesterday, but the Asian session was pretty ugly as well. China had its worse night in a long time.
- The mood was negative in the US in the early going, although Europe did fine. For a day, anyway, there wasn’t too much new in the “Europe is falling apart” story. There was yet another big economic warning emanating from the UK in the form of poor TESCO earnings.
- The market began to turn around in the early going in the US. Strong earnings from Johnson & Johnson provided a boost for the market. Later on Goldman jumped after earnings (trading revenue was very strong), although later on it sagged. From a macro standpoint, housing starts came in better than expected.
- Thus, as noted before, the general trend was: return to normal. The dollar sunk. Gold rallied. Silver surged above $44. Stocks gained, and bonds gained, putting Bill Gross’ Treasury short further into the red.
- The NASDAQ was a notable laggard for much of the day, as we come into a heavy period for tech earnings including Yahoo and IBM tonight, and Apple tomorrow.
- For a look at developed countries facing demographic crises, see here >