Photo: MarkelConnors on flickr
A lot to love today if you’re a bull. A lot.First, the scoreboard:
S&P 500: +6.15
And now the top stories:
- The key to understanding why today was so good starts in Asia and Europe where markets were generally pretty weak. Europe, especially, was pretty ugly. Greek-German spreads quietly hit an all-time high. Services PMI came in weak. PPI came in hot. The Swiss National Bank said it would no longer accept Irish debt as collateral. So yeah, a lot not to like, and that all lead to major weakness on European stock markets.
- Beyond the equity weakness, the selloff in industrial commodities that started yesterday seemed to be continuing. US futures were down in the early going.
- But bulls got a trifecta of good economic datapoints. At 7:30 the Challenger Layoffs Report was excellent. Then at 8:15 there was a ridiculously good ADP report. Supposedly there were 297K private sector jobs created in December, vs. expectations of 100K. And then finally, at 10:00, services ISM was excellent.
- After an initial hard time getting going, stocks turned higher. And then commodities turned higher, sharply reversing yesterday’s losses. But there was one commodity that didn’t turn higher and that was gold, which is exactly what you want to see if you’re a bull. Treasuries also got smacked around.
- One big winner? Bank of America, which is simply on a tear right now. For some interesting reading, check out this blistering presentation from the Florida AG on fraudclosure >