A big rally in the face of some scary news.But first, the scoreboard:
S&P 500: +17
And now, the top stories:
- A busy morning started with a slight miss on second quarter GDP, which was revised to 1% versus expectations of 1.1%. European markets turned sharply negative and U.S. markets were moderately negative going into Bernanke’s big speech.
- Bernanke did not promise any kind of stimulus. Instead he said the Fed’s tools to stimulate long-run growth were limited, and that Washington needs to step it up. The only thing he gave the markets was a “hug” in which he discussed how much the global economy had improved in the past few years.
- Stocks dropped at first, but within an hour of his speech markets turned higher. Europe climbed well back from the lows and the U.S. saw impressive gains. After a week of warnings that “everything depends on Bernanke,” today’s gains in the face of a disappointing speech represent a big win for the bulls.
- A hurricane of “historic proportions” will hit North Carolina tonight. Evacuations have been ordered up the coast including the first ever mandatory evacuations of parts of New York City. If your power doesn’t get cut out tomorrow, read Money Game to follow ECB Chief Jean-Claude Trichet’s big speech tomorrow at noon. Now see terrifying pictures of past hurricanes in New York >