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The markets were on a big losing streak going into today, but they have broken it in decisive fashion.First, the scoreboard:
Dow: +203.82 +1.62%
NASDAQ: 42.28 +1.48%
S&P 500: 22.02 +1.65%
And now, the top stories…
- The “day” really started off last night, with the release of a huge raft of Chinese economic data for the last quarter. While the headline GDP number was a shade worse than expectations, the overall assessment of the data was that it was not as bad as it could have been. Asian markets basically ended flat. Now here are key takeaways from China’s data dump in 65-seconds.
- Europe has been unusually all quiet all week, and today was no exception to that. But Spain and Italy both rallied. Borrowing costs stayed pretty flat.
- In the U.S., there was only a modest amount of economic data. Producer Prices came in much hotter than expectations, rising by 0.1%, when a decline of 0.4% was expected. And University of Michigan Consumer Sentiment was worse than expected, dropping to 72. Here’s Jeff Gundlach’s new epic presentation on ‘financial expressionism’ and the state of the economy >
- Instead of economic news, the big story today was about earnings, and specifically the earnings of JPMorgan, which released its first quarterly since the infamous “London Whale” losses. All told, the losses on the trade look like they will come in just under $6 billion. The company also announced that it would restate Q1 earnings due to a material weakness relating to the quality of its trading marks.
- Investors didn’t mind any of it. Shares of JPM rose over 6 per cent.
- After that it was pretty much off to the races. Stocks rallied throughout the day, with all the sectors in the green. Financials were the big winner (doubly ironic since in addition to the big whale news, LIBOR-gate continued to spiral with a bunch of documents released by the New York Federal Reserve).
- Bottom line: This was a huge way to break the down streak.