Photo: aa7ae on flickr
Bad housing data? Another Greek debt apocalypse? Who cares?Stocks surged today.
But first, the scoreboard:
S&P 500: +11.85
And now, the top stories:
- The ructions in the silver market have been a A1 story since Sunday night, and today there was no letup. The poor-man’s gold, frequently fell below the $45 level, which is already 10% lower than where they were just 36 hours ago.
- Asia was a fairly quiet, though generally “risk off” session. The Nikkei lost over 1%.
- Not surprisingly, there were big fireworks in Europe. Greece and Spain revealed that debt and deficit targets were much worse than they had anticipated, further burying the idea that austerity will get the continent out of its mess. Bond yields soared, especially short-term yields, signalling imminent default fears. Greece 2-year debt yields over 24% now!
- In the US we got mixed economic data. Case-Shiller confirmed the ongoing decline in home prices. The Richmond Fed was fairly ugly. A new poll from Washington Post/ABC confirms heightened economic anxiety. And yet, the conference board says consumer confidence ROSE in April, so go figure. Click here for more on how the data is quite mixed right now >
- All that being said, whatever concern there was from the macro data was wiped out by the earnings news. A slew of strong reports form the likes of Coach, 3M, UPS, and Ford gave a big lift to stocks. One interesting thing that happened today market wise: While a number of stocks surged on earnings, some previous momentum names like Apple and Netflix were big time laggards. The big indices hit new highs.
- And indeed that’s been the pattern. Ho-hum economic data. Mediocre earnings data. And the market has reacted to the earnings, not the economy.
- In the meantime, everyone’s excited about the Fed’s huge day tomorrow. See our prediction for it here >