STOCKS STAGE SHOCK RALLY AFTER DISASTROUS NEWS: Here's What You Need To Know

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Photo: Fir0002/Flagstaffotos

It was technically a mixed day: Dow up, NASDAQ down, and S&P 500 flat, but it was a big win for the bulls.But first, the scoreboard:

Dow: +61.76
NASDAQ: -8.27
S&P 500: +2.02

And now the top stories:

  • Obviously the entire market is haunted by the spectre of a Greek default, a threat that caused stocks to get clobbered yesterday, and continued in the European action today. Once again, there were lots of headlines, but no new action. There was a rumour early on about a bailout being delayed until September (at the behest of Germany), and that caused a big freakout, but really it’s up to Greece: If it can pass austerity it probably won’t default. If it can’t come together, it doesn’t get money from the IMF, and it could default. Nobody knows what’s going to happen.
  • Meanwhile, Irish yields are rocketing, too, and Irish financial minister Michael Noonan is obviously very scared.
  • (Before we forget: Japan and Shanghai were both down pretty hard. Hong Kong, too).
  • In the US there were two so-so datapoints. Initial claims were ugly, but slightly better than expected. Same too with housing starts. The Philly Fed Manufacturing Index, on the other hand, was horrendous, confirming the slowdown.
  • Outside the stock market, it was a ridiculous day for currencies, with the euro going totally bonkers. Some recent IPOs — LinkedIn and Pandora — got clobbered. Apple fell once again, too, continuing its underperformance. And banks, which have been total dogs, continue to be so.
  • Another thing a lot of people noticed: Junk bonds are getting destroyed, a sure sign of risk appetite quickly escaping the scene.
  • Unrelatedly, check out these brand new pictures of Chinese ghost cities >

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