The optimists had about two hours of feeling good. And that was it. In the final minutes, the longs did climb back, but the final tally was nothing like the early going.
First, the scoreboard:
S&P 500: +4
And now the top stories:
- The fizzled rally has to be the big story of the day. Early in the day things were looking good, as Europe got us going with a full head of steam. Talk of a new bank backstop, and a solid Spanish debt sale got everyone in the “risk-on” mood.
- Also, the pricing of the big Chinese AgriBank was also solid, removing one of the fears that had lingered over the market in recent days.
- On the weak side, the ISM Services index came in light, and the employment index came in at a level sub-50, indicating ongoing employment traction. Don’t miss: 15 signs the economy is rolling over >
- In addition to the mediocre market performance, gold was a notable loser, falling decisively below $1200. And the dollar fell as well, continuing a profound change from what we saw a month ago, when market down days were always dollar up days.
- BP rallied nicely, in part on hopes of an investment, and maybe some optimism about a quicker than expected completion of the relief wells.