Stocks were wobbly all morning, but the situation in the eurozone went from uneasy confidence to nervousness in the blink of an eye after the German government idiotically announced a temporary emergency naked short-selling ban. It applies to certain bank stocks, and the new regulations will also go after bond and currency speculators. Naturally,t he move is being re as a gigantic no-confidence move.
But first, the scoreboard:
S&P 500: -16
And now for some key stories:
- Story #1 is Germany’s short-selling regulations. The ramifications of this move will certainly be felt overnight, and possibly for some time to come.
- The euro has fallen to a new four-year low, following the German news. It is now below $1.23.
- Goldman Sachs continues to get hammered, and the stock is now down to close to book value. Other financials were hit hard as well.
- The one big winner today: Wal-Mart. The firm’s decent earnings helped carry the stock into the green all day.
- Commodities sold off across the board. Oil is below $70 again. Copper did manage to rally back a bit. Gold slipped.
- The BP oil slick is taking an ominous turn for the worse, with the emergence of a large “tail” extending to Florida.