Photo: Wikimedia Commons
On Monday, stocks crashed. On Tuesday they uncrashed. Today they re-crashed.But first, the scoreboard:
S&P 500: -52.21
And now, the top stories:
- The Europe crisis entered a dangerous new phase today, as the sickness breaks through the periphery and enters the core, with major concerns about French banks. SocGen — whose CEO just appeared on CNBC to dispel all rumours about any business issues — got crushed today. Early on there were rumours of France losing its AAA ratings — though the raters came out and re-affirmed it – and there was a strange typo story that freaked people out.
- Major European bourses got routed across the board, with Italy falling by the most: 6.65%.
- Things were fairly quiet on the US futures front until around 8:30, and that’s when things started falling out of bed. Meanwhile, banks in the US had another horrible day, with Bank of America leading the way. BofA CEO Brian Moynihan had a public conference call with shareholder Bruce Berkowitz, and during the call the stock actually rallied a bit, but after the call the beating resumed. Citigroup also had a horrible day, losing around 10%.
- Around the time of the BofA call, markets overall tried to make a comeback, and at one point the Dow was off less than 150, but that was fleeting, as the carnage quickly resumed. Earlier, also, there was a mini-comeback after a CNBC interview with Jamie DImon, where he basically said everything was fine. That didn’t last long. Generally speaking, this parade of bank CEOs making public statements in their defence have not been helpful. Other banks, like Goldman and Morgan Stanley had big losses as well.
- Not surprisingly, gold had a fantastic day, at one point breaking above $1800 (it lost a little bit after that).
- And meanwhile, world leaders are on vacation, with seemingly little going on behind the scenes. Bottom line: Yesterday’s huge post-FOMC rally had no carry-through at all.
- Regarding France, check out where its CDS are these days >