STOCKS SMASHED AFTER GIGANTIC WEEK FOR NEWS: Here's What You Need To Know

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Photo: familymwr via flickr

Where to begin!First, the scoreboard:

Dow: -108.60
NASDAQ: -34.45
S&P 500: -14.60

And now, the top stories:

  • Today was a brutal disappointment for the bulls. We had surprise comeback yesterday, and then an overnight rally in US futures, and yet… things fell apart. Stocks ended sharply lower.
  • As noted, it all started out promising enough. China had a big rally after its Premier Wen Jiabao declared inflation dead and growth sustainable and strong. Europe also rallied nicely early on.
  • But at around 6:30 AM it all started to fall apart. A member of the ruling PASOK party in Greece hinted that he might not support the government’s austerity plan. If he doesn’t support it, it means Papandreou’s margin of victory on this bill is down to 3 votes! The vote next week has been scheduled with a debate from the 27-29th. It’s going to be nuts.
  • Also in Europe: Italian banks got killed on concerns over credit ratings downgrades.
  • Still, futures were higher  in the morning, but as soon as the opening bell came it all went negative. There wasn’t too much US data. GDP and durable goods both came in basically in line.
  • And then after that it was basically a slow grind lower. Everyone’s still talking about the IEA’s big move, but no real action on that. And the debt ceiling talks are still blown up, but nothing particularly new there. Just a disappointing reversal of yesterday, and a big down day.
  • What did well? Bonds and the dollar, basically.
  • Have a great weekend, you deserve it. And check out 10 market myths that need to be debunked >

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