Photo: Satterwhite.b via flickr
Weird day. Tons of bad news. Stocks green.But first, the scoreboard:
S&P 500: +0.92
And now, the top stories:
- The “day” began at 2:00 PM ET on Tuesday, when Moody’s downgraded Portugal, throwing the briefly calm seas of Europe into disarray. Really, it was a total mess, with sovereign debt spreads blowing out to new records all along the periphery, and stocks getting crushed. All you need to know is that the day was Europe’s worst nightmare.
- In retaliation to Moody’s several Eurozone financial leaders spoke out about the ratings agencies, and the need to bust up their oligopoly. It would seem that the days of them pushing governments around are numbered.
- In the US, the economic news was fairly light. ISM services came in just shy of expectations, which doesn’t help the trend of regularly better-than-expected data. That being said, in terms of economics, everyone is mainly looking forward to this Friday’s jobs report, and to a lesser extent tomorrow’s ADP report.
- Though stocks were higher on the day, there was some interesting stuff happening on the sector front. Banks got hammered again. Bank of America lost 2.5%. Citigroup lost 1.5%. Another big loser was News Corp, which is getting dragged down by this huge hacking scandal in England. Also, from the Deja Vu files, shares of Transocean tanked on a report about a sinking rig off of the coast of Africa.
- Obama gave a Twitter town hall and didn’t break any news.
- Late in the day, there was a major earthquake (replete with tsunami warnings) off the coast of New Zealand, but other than a dip in the Kiwi, there wasn’t too much.
- Bottom line: The rally that started last Monday is intact (yesterday was basically flat). It’s pretty remarkable, really.
- For some fantastic charts, check out the latest big deck from Jeff Gundlach >