Bulls Drop A Monster Bomb On The Bears: Here's What You Need To Know


Photo: hackdaddy via Flickr

Remember the European crisis? We neither.But first, the scoreboard:

Dow: +246
S&P 500: +25.29

And now, the top stories:

  • The day started yesterday after 8:00 PM ET, when China kicked of GLOBAL PMI DAY that perfectly encapsulated the situation in China right now: Strong growth, but some worrisome signs of inflation. Nonetheless, after several days of selling, the mood was generally more bullish to start Wednesday trading.
  • Europe, meanwhile, got a much-needed relief from the huge run on the continent. Some very tepid comments from Jean-Claude Trichet regarding bond purchases by the ECB, and how it might be a possibility, brought spreads and yields in for the first time in days. As for PMIs in Europe it was a mixed bag. The interior and the UK are growing briskly. Spain? Not so much.
  • The bullish “risk on” move really picked up in the US around 6:00 AM ET. There wasn’t too much to it. The euro was rallying, the dollar was sinking, and that was that.
  • Then we got a flurry of economic data. At 7:30, Challenger, grey & Christmas reported an uptick in November layoffs, though that’s somewhat to be expected, since there’s a seasonal component to this. The really good news came at 8:15, when ADP reported private sector jobs growth that was far ahead of expectations, and augured very well for Friday’s big jobs report from the government.
  • Finally, the “main event” of the day, the ISM, came at 10:00 and it was good, but… not really as hot as some might have hoped, given the other good news of late and the strong regional Fed announcements. (Later, at 2:00 PM ET, we got the desert of the day, the Beige Book, which was fine, though nothing anyone cared about).
  • What didn’t move markets that much was the 12:00 Fed release about who did what borrowing from the government during the crisis. It will make for some interest research, but nothing market moving.
  • A big loser: Uber-hot momentum stock Netflix was down over 3%, perhaps on ongoing fears about cable company throttling data.
  • Also in the morning we got the Deficit Commission panel report. Some interesting stuff in there. Nothing market moving. Click here to learn more on that >

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