vomit puke sick

Photo: njaminjami, Flickr

Just a wild, exhausting day in the market.But first, the scoreboard:

Dow: +63.88
NASDAQ: +0.68
S&P 500: -20.36

And now, the top stories:

  • Obviously to understand today you have to go back over the last 10 days as markets cratered amid increasingly dire news in the US and in Europe. That selloff culminated in yesterday’s gigantic 512 point loss on the Dow, bringing back all kinds of memories from 2008 (if not 1937).
  • Not surprisingly, the selling continued overnight. Asia had a bad night, and Europe instantly collapsed upon opening. Italy was down 3% right off the bat. Things stabilised a little bit in early going, as the entire world waited for the jobs report at 8:30 AM.
  • Then the jobs report came, and it was good! The most important datapoint did not confirm the imminent depression that everyone seems to be fearing. 117K new jobs wasn’t stellar, but seeing as some people expected a negative reading, it was a major relief. Stocks exploded higher on the news. Click here to see the key points from the report >
  • But then, almost as soon as people started to get excited, markets plummeted violently. At one point the NASDAQ was off some 3%. Europe also continued to burn, as the world wondered what would happen to Italy. There was also chatter about an imminent S&P sovereign downgrade.
  • Then mid-day we started getting action on Europe. Reports emerged that the ECB would be willing to start buying (monetizing) Italian sovereign debt in exchange for more aggressive restructuring. And then at about 1:45, Berlusconi and his Finance Minister came on TV to announced exactly that. Hilariously, they even announced a Balanced Budget Amendment for the Italian constitution.
  • By this point, stocks were making a huge comeback. After being down 200 at one point, the Dow came back to being up 150. Nobody really expects this ECB activity to be a real solution, but for now it’s something, and perhaps one less reason to be afraid of the weekend. Surely there will be more furious activity behind the scenes in Europe over the next couple of days.
  • But even this didn’t last, as the markets swooned again with about 90 minutes to go in the day. At 3:00 PM, we got a surprisingly strong consumer credit report, with a huge 7.9% annualized surge in consumer credit. That didn’t seem to have much impact on markets. Still, unequivocally bullish.
  • Basically, today was the day traders have been waiting for for a while: The day when we started having terror and found the puke point, where markets came back. Meanwhile, silver was once again a big loser. Gold didn’t really do much, and oil gained a little bit, after initially getting smacked.
  • Meanwhile, there’s plenty to think about going into next week including Europe, but what should also be a historic Fed meeting on Tuesday, where everyone expects the door to be opened (at least a little) to QE3. Click here for a guide to what QE2.5 might look like.
  • Meanwhile, for more on what may be terrifying markets, see here.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at